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Choosing between a one-step and a two-step challenge is one of the most consequential decisions you make when starting with a prop trading firm. At FundedNext, both paths lead to a funded simulated account, but the rules, risk tolerance, profit targets, and fee structures are different enough that the wrong choice can slow you down significantly.
Here is a direct comparison of the Stellar 1-Step and Stellar 2-Step challenges so you can match the right model to how you actually trade.
TL;DR
- Stellar 1-Step: One phase, 10% profit target, tighter loss limits (3% daily / 6% maximum), minimum 2 trading days. Best for high-accuracy, tight-risk traders
- Stellar 2-Step: Two phases (8% then 5%), higher drawdown (5% daily / 10% overall), minimum 5 trading days per phase. More structured for disciplined, lower-risk traders.
- Both models offer a 15% challenge phase reward upon first scale-up, up to 95% profit share with the Lifetime 95% Add-On, and no time limit to complete the challenge.
Stellar 1-Step has a single payout setup: an 80% profit share with rewards every 5 business days. Stellar 2-Step lets you choose one of three performance reward structures at checkout: Standard (80%), 3 Day (60%), or On-Demand (90%). - Stellar 2-Step fees start slightly lower ($59.99 for $6K) than 1-Step ($65.99 for $6K), but this difference narrows at larger account sizes.
- Neither model is objectively superior; the right choice depends on your average win rate, risk-per-trade, and trading frequency.
How FundedNext Challenge Models Work
FundedNext operates on a simulated performance model. All trading activity on challenge and funded accounts is simulated; no trades are routed to live markets. Traders earn profit based on simulated P&L, subject to the rules of their chosen challenge model.
The current CFDs model includes:
- Stellar 1-Step: single-phase evaluation
- Stellar 2-Step: two-phase structured evaluation
- Stellar Lite: cost-efficient two-phase model (no 15% challenge reward)
- Stellar Instant: direct access with no evaluation phase
This article focuses on the 1-Step and 2-Step models, which together represent the primary evaluation paths for most traders.
Stellar 1-Step Challenge: Rules and Structure
What Are the Profit Targets and Loss Limits?
The Stellar 1-Step challenge requires traders to hit a 10% profit target in a single phase, designed for experienced traders who want to bypass a multi-phase evaluation
- Daily loss limit: 3% of account balance (balance-based)
- Maximum loss limit: 6%
- Minimum trading days: 2
- Reward Cycle: Every 5 business days
The 6% maximum loss limit is fixed and measured from the initial account balance. On a $100,000 account, your floor stays at $94,000 throughout the challenge. Traders who run aggressive strategies with large equity swings need to stay mindful of the tighter overall buffer compared to the 2-Step.
Account Sizes and Fees
| Account Size | Challenge Fee |
| $6,000 | $65.99 |
| $15,000 | $129.99 |
| $25,000 | $219.99 |
| $50,000 | $329.99 |
| $100,000 | $569.99 |
| $200,000 | $1,099.99 |
There is no time limit to complete the challenge, so traders can progress at their own pace while focusing on the profit target and drawdown rules. However, accounts must remain active; if no trades are placed for 60 consecutive calendar days, the challenge account may be marked inactive and deactivated under FundedNext’s inactivity policy.
Reward Cycle After Passing
Once you pass the Stellar 1-Step and receive a funded account, the reward cycle runs every 5 business days. This is faster than most two-step models and suits traders who want frequent access to their earned profit.
Stellar 2-Step Challenge: Rules and Structure
The Stellar 2-Step is designed for traders who prefer a more measured evaluation process, with greater drawdown flexibility spread across two distinct phases, making it significantly more “forgiving” during periods of market volatility.
What Are the Two-Phase Targets?
The Stellar 2-Step is a two-phase evaluation. Each phase has its own profit target and must be completed independently:
- Phase 1 profit target: 8%
- Phase 2 profit target: 5%
- Daily loss limit: 5%
- Overall loss limit: 10%
- Minimum trading days: 5 per phase
The overall loss limit is fixed and measured from the initial account balance. A $100,000 account maintains its $90,000 floor throughout both phases, regardless of interim profits. The key structural difference from the 1-Step is the size of the buffer; 10% versus 6%, giving traders more room when navigating drawdown periods.
Account Sizes and Fees
| Account Size | Challenge Fee |
| $6,000 | $59.99 |
| $15,000 | $119.99 |
| $25,000 | $199.99 |
| $50,000 | $299.99 |
| $100,000 | $549.99 |
| $200,000 | $1,099.99 |
The Stellar 2-Step starts at a slightly lower entry fee at most account sizes. For example, the $6K account is priced at $59.99 compared to $65.99 for the Stellar 1-Step, while larger account tiers remain closely priced across both models.
Side-by-Side Comparison: 1-Step vs. 2-Step
| Rule | Stellar 1-Step | Stellar 2-Step |
| Number of phases | 1 | 2 |
| Profit target | 10% | Phase 1: 8% / Phase 2: 5% |
| Daily loss limit | 3% | 5% |
| Maximum loss limit | 6% | 10% |
| Minimum trading days | 2 | 5 per phase |
| Time limit | No completion deadline (60-day inactivity policy applies) | No completion deadline (60-day inactivity policy applies) |
| 15% challenge phase reward | Yes (upon first scale-up) | Yes (upon first scale-up) |
| Profit Share (standard) | 80% | 80% |
Which Model Has a Higher Effective Risk Budget?
This is where the structural difference matters most. The 2-Step’s 10% fixed overall drawdown versus the 1-Step’s 6% fixed overall drawdown creates a significantly different risk environment.
On a $50,000 account:
- 1-Step: You have $3,000 in total loss buffer, with your floor fixed at $47,000 throughout the challenge.
- 2-Step: You have $5,000 in total loss buffer, with your floor fixed at $45,000 throughout the challenge.
For traders who use wider stop-losses, trade through volatile market conditions, or manage drawdown across multiple open positions, the 2-Step provides more room before a rule breach. For traders who maintain tight risk management and target small, consistent daily gains, the 1-Step’s tighter limits may never come into play.
How FundedNext Payouts Work: Both Models Explained
The two models now differ in how rewards work once you are funded.
Stellar 1-Step has one structure: an 80% profit share and a reward cycle every 5 business days.
Stellar 2-Step now offers three performance reward structures, selected once at checkout and fixed for the life of the account:
| Feature | Standard | 3 Day | On-Demand |
| Profit split | 80% | 60% | 90% |
| First reward | 21 days after trading starts | After the first 3-day cycle, if conditions are met | Any time, once conditions are met |
| Reward cycle | Every 14 days after the firstEvery 14 days after the first | Every 3 days | No fixed cycle |
| Conditions | None | 3 profitable days per cycle, minimum 1% profit each | 2% account growth and 40% consistency |
- Standard: The predictable option, with no conditions attached.
- 3 Day: Built for active traders who want frequent access to smaller amounts. If you miss the condition in a cycle, it rolls into the next one, and the account is not affected.
- On-Demand: The highest split with full control over timing. Once you reach 2% growth and no single day’s profit exceeds 40% of the total profit, you can request a reward whenever you choose. This replaces the old stand-alone on-demand add-on, which has been turned off.
The Lifetime 95% Add-On keeps your split at 95% on every structure, so the choice comes down to cycle speed and conditions. Loss limits and drawdown rules stay the same regardless of the structure you pick. FundedNext’s 24-hour payout guarantee applies to eligible rewards, with compensation of up to $1,000 under the Brand Promise, subject to applicable terms.
Who Should Choose the Stellar 1-Step?
The 1-Step model fits traders who:
- Trade with tight risk management: daily risk well within 1–2%, stop-losses precise
- Have a consistent, proven strategy: not still refining through trial and error
- Prefer a faster evaluation: one phase means one set of rules to satisfy, minimum 2 trading days
- Want faster reward cycles: a 5-business-day payout cycle suits active traders withdrawing frequently
- Trade in lower-volatility conditions: where large equity swings are unlikely
The fixed 6% maximum loss limit makes the 1-Step especially well suited to traders who maintain tight risk exposure and controlled equity movement throughout the challenge. Traders with precise entries, smaller position sizing, and consistent day-to-day execution may find the streamlined single-phase structure aligns naturally with their approach
Who Should Choose the Stellar 2-Step?
The 2-Step model fits traders who:
- Trade with wider stops or hold positions longer: the 10% fixed loss limit provides more breathing room
- Are newer to prop firm evaluations: two phases allow for recalibration between Phase 1 and Phase 2
- Trade lower-frequency strategies: swing traders, position traders, or those who trade fewer setups per week
- Want a lower entry fee: the $6K account at $59.99 is cheaper than the 1-Step equivalent, a marginal but real difference at the entry level
- Trade during high-volatility periods: the 5% daily loss limit provides more flexibility on news-heavy days
The two-phase structure also provides a useful feedback loop. If a trader barely passes Phase 1, they have Phase 2 to confirm consistency before accessing a funded account. This self-selection process tends to produce more durable funded traders over time.
Final Thoughts
The Stellar 1-Step and Stellar 2-Step are built on the same foundation: simulated trading, a transparent set of enforced rules, and a performance reward structure that scales with your results. The difference is in the risk architecture: a single, tighter phase versus two more forgiving phases.
Neither model is categorically better. The 1-Step is better for traders who have already proven their edge and want faster access to funded capital. The 2-Step is better for traders who trade wider stops, longer holds, or need a more gradual evaluation structure.
Match the model to your actual trading behavior, not to how you wish you traded.
Ready to start? Compare the full Stellar Challenge rules and fees on the FundedNext challenge page and select the account size and model that fits your strategy. No time limits. Verified rules. Same process for every trader.
Frequently Asked Questions
What is the difference between a one-step and two-step prop firm challenge?
A one-step challenge requires traders to hit a single profit target before accessing a funded account, while a two-step challenge splits the evaluation into two phases, each with its own profit target. The trade-off is speed versus structure: one-step is faster, two-step is more forgiving.
Which is easier to pass: one-step or two-step trading challenge?
It depends on your trading style. The two-step challenge has a higher overall drawdown allowance (10% vs. 6%), making it more forgiving for traders who experience larger equity swings. The one-step has a tighter overall buffer but only one phase to clear.
Why do some traders prefer two-step prop firm challenges?
The two-step structure offers a higher daily loss limit (5%), a fixed overall drawdown floor that does not move with profits, and a lower entry fee at most account sizes. Swing traders, position traders, and those trading through volatile market conditions typically prefer the added breathing room.
What are the profit targets in one-step vs two-step challenges?
The Stellar 1-Step requires a single 10% profit target. The Stellar 2-Step requires 8% in Phase 1 followed by 5% in Phase 2. The total required profit across both phases of the 2-Step is higher, but it is split across two separate evaluations with no time limit on either.
How does drawdown differ between one-step and two-step challenges?
The Stellar 1-Step has a 3% daily loss limit and a fixed 6% maximum loss limit. The Stellar 2-Step has a 5% daily loss limit and a fixed 10% maximum loss limit. Both are measured from the initial balance and do not trail. The 2-Step simply gives you a larger buffer, making it more forgiving for traders who experience bigger equity swings.
Which FundedNext challenge model offers a higher profit split?
Both models offer the same standard 80% profit share, with identical scale-up paths to 90% and the same optional Lifetime profit share 95% Add-On. The 15% challenge phase reward upon first scale-up also applies equally to both. The profit split structure is identical. The only payout difference is cycle speed; every 5 business days for 1-Step versus bi-weekly for 2-Step.
How do I choose the right prop firm challenge for my trading style?
Start with your average loss limit per trade. If it stays under 1–2%, the 1-Step is viable and offers faster payouts. If you regularly see 3%+ swings, the 2-Step’s fixed 10% maximum loss limit is the safer fit. Also consider trading frequency: the 1-Step’s 2-day minimum suits active traders, while the 2-Step’s 5-day minimum per phase aligns better with lower-frequency strategies.