- FTMO: $10,000 - Aggressive
- FTMO: $25,000 - Aggressive
- FTMO: $50,000 - Aggressive
In recent years, proprietary trading firms have emerged as an increasingly viable path for retail traders to access significant capital and scale their operations. While some traders thrive in high-octane environments (check out our guide to higher-risk, higher-reward prop firm challenges), others find success in patience, discipline, and risk control. That’s where these low-risk trading firms come in. With low entry barriers and the promise of funding without personal capital at stake, prop firms have revolutionized the trading landscape. Yet, not all prop firm challenges are created equal. For risk-conscious traders, navigating this space means filtering through a sea of options to find firms that offer the safest, most sustainable route to long-term trading success.
This guide presents the Top 5 Low-Risk Prop Firm Challenges based on a comprehensive scoring methodology. Designed with traders in mind, our rankings factor in essential elements of challenge structure, firm policies, and trader freedoms that influence both the likelihood of success and long-term growth potential.
Why "Low-Risk" Matters in Prop Firm Challenges
The prop trading industry is booming. According to a report from Finance Magnates, the global prop trading market is estimated to exceed $10 billion in annual revenue by 2026. This surge reflects increasing participation from skilled individual traders seeking funding. However, this demand has also led to a flood of prop firms, many with opaque rules and profit traps hidden in the fine print.
Low-risk challenges provide traders with breathing room to operate. They emphasize:
- Generous drawdown limits (both daily and overall)
- Manageable profit targets
- Freedom to use effective strategies (EAs, news trading, swing positions)
- Supportive firm behavior (including reputation, fairness, and transparency)
- Time flexibility
These attributes don’t just make the challenge easier; they protect traders from breaking rules on technicalities, encourage consistent habits, and support steady progress through funded stages.
Low-risk challenges also empower traders to learn and grow without the pressure of unrealistic deadlines or trapdoor rules. For newer traders, this means gaining experience and feedback without losing out on the opportunity due to a single mistake. For more experienced traders, it creates an environment where strategy and precision thrive.
In a space where 90% of traders fail prop firm evaluations, low-risk environments stand out as rare havens of balance, transparency, and trader-focused design.
If your trading style leans low-risk, cost matters. Be sure to also review our latest comparison of the cheapest 2-step $100K prop firm accounts to find firms with generous drawdowns and minimal evaluation fees.
The Methodology Behind the Ranking
Each prop firm challenge was analyzed using real data and a trader-first lens. The methodology focused on factors that directly influence a trader's risk exposure, challenge success rate, and psychological sustainability. Here's a detailed explanation of each evaluation component and why it matters:
Rather than rely on anecdotal reviews or one-size-fits-all metrics, we created a comprehensive scoring model to rank challenge accounts by risk profile. This model uses publicly available challenge data across over 100 prop firm offerings.
Here’s a high-level breakdown of how each account was evaluated:
- Daily and Overall Drawdown: These are the maximum loss limits allowed either in a single day (daily) or throughout the challenge (overall). A firm offering 5% daily and 10% overall drawdown is more forgiving than one offering 3% daily and 6% overall. For example, FTMO's structure of 5% daily and 10% overall gives traders a healthy buffer against market volatility. Drawdown limits are critical because they influence how much room a trader has to navigate trades and manage risk without triggering a failure. Accounts with higher tolerances for loss (e.g., 5% daily, 10% total) received stronger scores.
- Profit Target: This is the percentage gain traders must achieve to pass the evaluation. Lower profit targets are more attainable and reduce pressure. For instance, a 10% target in Phase 1 and 5% in Phase 2 (like FTMO) is significantly easier than firms demanding 15%+ in one step. Lower targets encourage disciplined trading and reduce the need for aggressive tactics, which can lead to overtrading and loss spirals. Challenges that ask for 8% or less in Phase 1 and 5% in Phase 2 are easier to pass with consistent risk management.
- Challenge Structure: The number of steps in a challenge (1-step, 2-step, etc.) affects risk. A 1-step challenge requires fewer evaluation phases and is thus less prone to cumulative risk. For example, FidelCrest's aggressive challenges are single-phase with extended durations, offering fewer hurdles and a smoother progression toward funding. This simplicity benefits traders who perform well under consistent, stable conditions. 1-step challenges are inherently less risky than 2- or 3-step models.
- Time Flexibility: Challenges with unlimited time or generous limits allow traders to wait for optimal setups. If a firm gives 60 days instead of 30, traders can navigate the challenge at their own pace. For example, FidelCrest offers 60-day windows, which is ideal for swing traders or those who avoid overtrading. In contrast, tight deadlines can lead to rushed decisions, which increase risk. No time limits or long duration caps reduce pressure. For a comprehensive list of evaluations offering generous time limits, explore our Prop Firm Challenges with no Time Limits guide.
- Refund Policy: Some firms refund the challenge fee upon passing (or even failing under certain conditions). This reduces financial risk. FTMO, for example, refunds the fee after passing and even allows free retries if minimum requirements are met. It shows good faith from the firm and lowers the cost of trial for the trader. If a firm offers refunds on pass or failure, it reduces sunk cost risk.
- Strategic Freedom: The ability to use EAs, hold trades over weekends, trade during news, or use copy trading systems adds flexibility. These permissions matter for traders with automated systems or specific time-sensitive strategies. Firms that allow more of these freedoms score higher because they don’t force traders to adapt or limit their edge. We considered whether the firm allows use of EAs, copy trading, news trading, and overnight/weekend positions.
- Firm Reputation: A composite rating based on support, fees, payout reliability, and difficulty. A firm’s reputation is a proxy for trust and transparency. Traders favor firms that are responsive, fair, and consistent with their terms. FTMO, for example, scores highly here because of its established track record, clear policies, and reliable payouts. Using a composite score built from ratings on fees, support, payout system, and difficulty, we factored in how trustworthy each firm is.
Only challenges with complete and verifiable data across these dimensions were scored.
We also applied an adjustment factor to account for drawdown type (balance-based vs. equity-based), bonus retry policies, and whether the profit target drops significantly after phase 1. These extra parameters fine-tune the risk rating to reflect real-world trade conditions more closely.
The final ranking was based on a weighted average score from all these elements, designed to highlight firms that reward consistency and protect traders.
The Benefits of Choosing a Low-Risk Challenge
Low-risk doesn’t mean "less profit." In fact, it means:
- Higher pass rates: Fewer strict rules and lower targets lead to more funded traders.
- Better long-term survival: Traders can scale safely, avoiding emotional and rule-based mistakes.
- Peace of mind: You can focus on your strategy without obsessing over ticking rule boxes.
Additionally, these challenges often include more reasonable scaling plans, realistic trading conditions, and supportive environments that promote trader development.
Another significant benefit is the ability to trade without fear. Many prop firm evaluations fail traders not because of poor strategy, but due to technical rule breaches, tight time limits, or stress-induced overtrading. Low-risk structures minimize these triggers.
For firms, this model creates a win-win: traders last longer, generate more data, and are more likely to become profitable partners. Some of the top-rated firms in our review have noted a correlation between lower challenge failure rates and long-term payout stability.
Prefer a conservative approach that also keeps costs low? Discover the best budget-friendly evaluations in our guide to the Most Affordable Prop Firms—where low price meets low pressure.
The Top 15 Low-Risk Prop Firm Challenges (2025 Edition)
Here are the firms whose challenges stood out for their trader-friendly, low-risk configurations:
| Prop Firm | Challenge Name | Funding | Daily Drawdown | Overall Drawdown | Profit Target | Time Limit | Structure/Steps | Challenge Fees |
|---|---|---|---|---|---|---|---|---|
| FTMO | $10,000 - Aggressive | $10000 | 10% | 20% | 10% | 30 | 2 | $250 |
| FTMO | $25,000 - Aggressive | $25000 | 10% | 20% | 10% | 30 | 2 | $300 |
| FTMO | $50,000 - Aggressive | $50000 | 10% | 20% | 10% | 30 | 2 | $550 |
| FTMO | $100,000 - Aggressive | $100000 | 10% | 20% | 10% | 30 | 2 | $995 |
| The Trading Pit | $10,000 - Lite - CFDs | €10000 | 5% | 10% | 8% | 90 | 2 | €99 |
| The Trading Pit | $20,000 - Standard - CFDs | €20000 | 5% | 10% | 8% | 90 | 2 | €179 |
| The Trading Pit | $50,000 - Executive - CFDs | €50000 | 5% | 10% | 8% | 90 | 2 | €399 |
| Funded Prime | $100K 2 Phase FX Challenge | $100000 | 5% | 15% | 5% | N/A | 2 | $510 |
| The Trading Pit | $100,000 - VIP - CFDs | €100000 | 5% | 10% | 10% | 90 | 2 | €999 |
| Funded Prime | $25K 2 Phase FX Challenge | $5000 | 10% | 15% | 10% | N/A | 2 | $155 |
| Plutus Trade Base | 2 Step Challenge 200K | $200000 | 7% | 14% | 8% | N/A | 2 | $870 |
| Plutus Trade Base | 2 Step Challenge 100K | $100000 | 7% | 14% | 8% | N/A | 2 | $440 |
| Plutus Trade Base | 2 Step Challenge 50K | $50000 | 7% | 14% | 8% | N/A | 2 | $251 |
| Plutus Trade Base | 2 Step Challenge 20K | $20000 | 7% | 14% | 8% | N/A | 2 | $220 |
| Plutus Trade Base | 2 Step Challenge 10K | $10000 | 7% | 14% | 8% | N/A | 2 | $190 |
| Plutus Trade Base | 2 Step Challenge 5K | $5000 | 7% | 14% | 8% | N/A | 2 | $140 |
| Plutus Trade Base | 2 Step Challenge 2K | $2000 | 7% | 14% | 8% | N/A | 2 | $127 |
| Propel Capital | 100K Reversal Plan | $100000 | 4% | 13% | 5% | N/A | 2 | $437 |
| Propel Capital | 50K Reversal Plan | $50000 | 4% | 13% | 5% | N/A | 2 | $225 |
| Propel Capital | 20K Reversal Plan | $20000 | 4% | 13% | 5% | N/A | 2 | $100 |
1. FidelCrest — Aggressive Challenge ($250,000 Account)
- Drawdown: 10% daily, 20% overall
- Profit Target: 20% (spread over 60 days)
- Time Limit: 60 days
- Structure: Aggressive challenge with flexible rules
- Flexibility: News, EAs, weekend holding allowed
- Reputation Score: Moderate
While the target may seem high, the extremely generous drawdowns and long time frame offset this, giving traders massive breathing room. The ability to operate over two months makes this challenge surprisingly beginner-compatible despite the high capital.
2. FidelCrest — Aggressive Challenge ($500,000 Account)
- Drawdown: 10% daily, 20% overall
- Profit Target: 20%
- Time Limit: 60 days
- Structure: Aggressive challenge with full strategic freedom
This is a capital-rich opportunity for traders who want freedom with a high ceiling. The structure mirrors the $250K account but offers double the capital, making it ideal for scaling-focused strategies.
3. FTMO — Aggressive Challenge ($50,000 Account)
- Drawdown: 5% daily, 10% overall
- Profit Target: 10% (Phase 1), 5% (Phase 2)
- Time Limit: 30 days
- Refund: Yes, on pass
FTMO’s challenge structure remains one of the most respected in the industry, with transparent rules, responsive support, and consistent payouts. It continues to be a preferred choice for traders looking for structure and fairness.
4. FTMO — Aggressive Challenge ($10,000 Account)
- Structure: Same as $50K challenge
- Capital: Lower capital, same low-risk rules
The $10K challenge is perfect for traders who want to dip their toes into prop firm trading without committing large sums. With the same rules and structure as the larger accounts, it allows for a smooth transition to bigger capital.
5. FTMO — Aggressive Challenge ($25,000 Account)
- Drawdown: 5% daily, 10% overall
- Flexibility: Flexible trading permissions
- Reputation: High
The $25K challenge provides a balanced middle ground, offering enough capital to take meaningful trades while keeping pressure manageable.
What Sets These Firms Apart?
A few recurring traits emerged among the best performers:
- Consistency: They have clear, documented policies that are easy to follow.
- Support: Most offer helpful dashboards, fast customer service, and refund options.
- Realistic Metrics: They avoid the trap of offering ultra-high leverage with tiny drawdowns.
- Trader Focused: These firms often encourage education, provide analytics tools, and help traders grow beyond the initial funding phase.
Some of these firms also offer additional tools such as journal integrations, trading dashboards, risk tracking alerts, and coaching partnerships that enhance the experience. These auxiliary services, while not directly factored into the low-risk score, are relevant when comparing firms holistically.
Industry Context: Why So Many Traders Fail
According to MyFXBook and various prop firm disclosures, pass rates for 2-step challenges hover around 7-15%. The reasons? Unrealistic profit targets, time pressure, or strict rules that trap otherwise good traders.
Many prop firms also operate on the assumption that most traders will fail—hence, they price challenges with low success probability in mind. The best low-risk firms turn this model on its head. They are designed for profitability on both sides, not just challenge revenue.
In contrast, firms that rank highly in our list invest in their traders. They often pay out after just one successful cycle, allow more flexibility in scaling, and prioritize trader retention. These factors contribute not only to the trader’s peace of mind but also to the firm’s reputation as a true funding partner.
Final Thoughts: Choose Strategy Over Hype
The low-risk prop firm challenges in our list aren’t always the flashiest. They may not boast 1:500 leverage or $10M scaling instantly. But they are consistent, forgiving, and designed to help you grow steadily as a trader.
If your goal is long-term consistency, funding security, and a professional path forward, choosing a low-risk challenge is the smartest move you can make.
Use this guide not just to pick a challenge, but to shape a trading career around stability, scalability, and strategy.
Always evaluate a challenge not by its marketing—but by how it aligns with your risk profile, trading style, and goals.
Want deeper insights or a personalized recommendation based on your trading style? Contact us and we’ll guide you toward the safest challenge for your strategy.
