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When it comes to prop firm trading, a lot of traders are hesitant because they see difficult targets set by the traditional 2-step challenges, that it seems even the most experienced traders struggle with.
So it’s especially difficult, when you are new to trading, as you may not perfectly understand the rules and conditions, so there must be a better way to get into prop firm trading?
The answer is yes, and we’ll explore that in this article.
Why Three-Step Challenges Are the Best Prop Firm Account For Beginners
Prop firms offer various evaluation models; including instant-funding, one-step, two-step and three step challenges.
For beginners, the three-step challenge stands out as the ideal choice.
Why Choose a Three-Step Challenge as a Beginner?
Three-step challenges are designed with beginners in mind for two key reasons:
- Easier Targets and Manageable Steps
- Profit targets are typically lower than in one or two-step challenges.
- The gradual progression across three phases allows beginners to build skills step-by-step.
- This structure reduces pressure, making it easier to achieve targets without aiming for a big win upfront.
- Lower Costs and Reduced Risk
- Three-step challenges often have lower entry fees compared to other models.
- A smaller initial investment means less financial risk for beginners.
- This affordability allows new traders to enter prop trading with confidence.
This guide explains why and compares the three-step challenges from three reputable firms: Fintokei, Alpha Capital, and E8 Markets.
Profit Split for the 3 Step Challenge – Best Prop Firm Account For Beginners
| Profit Split Comparison | |||
|---|---|---|---|
| Criteria | Fintokei | E8 | Alpha |
| Step 1 Profit Target | 2% | 2% | 8% |
| Step 2 Profit Target | 3% | 5% | 4% |
| Step 3 Profit Target | 5% | 5% | 4% |
Step 1: Building Confidence
In the first step, Fintokei and E8 share identical profit targets, which are notably low.
A lower target in this initial phase is ideal for beginners.
It fosters confidence by offering a manageable goal that’s easier to achieve.
Alpha, however, sets a higher target at 8%, making it significantly more challenging compared to Fintokei and E8.
Step 2: Gradual Progression
Moving to the second step, Fintokei increases its profit target slightly by 1%, reaching 3%.
This gradual increase provides a smooth transition, keeping the goal achievable.
E8, on the other hand, more than doubles its target to 5%, which can feel daunting.
Alpha sets its target at 4%, striking a middle ground but still posing a steeper challenge than Fintokei.
Step 3: Final Step
In the final step, Fintokei and E8 both require a 5% profit target.
Alpha, surprisingly, lowers its target to 4%, which is less demanding than the other two.
While this decrease might seem appealing, it’s less intuitive for progression, as a consistent or slightly increasing target better supports skill development.
Why Low Initial Targets Matter
Starting with a low profit target, as seen in Fintokei and E8, sets beginners up for success psychologically.
It allows you to test your strategy calmly and build confidence.
Gradual increases, like Fintokei’s approach, scale with your progress, preparing you for bigger challenges.
Sudden jumps, such as E8’s in Step 2, or high initial targets, like Alpha’s, can disrupt this process and feel overwhelming.
Best Profit Split for 3 Step Challenges
For beginners, a program like the StartTrader (3 Step Challenge) by Fintokei, with its low initial target and steady progression, offers a more manageable path.
It supports confidence-building and strategic growth, helping you stay calm and prepared as you advance.
Choose a program that aligns with your skill level and prioritises gradual scaling for long-term success.
Drawdown for the 3 Step Challenge
Here, we compare daily drawdown, overall drawdown, and drawdown type in the three-step challenges of Fintokei, Alpha Capital Group, and E8 Markets.
| Drawdown Comparison | |||
|---|---|---|---|
| Criteria | Fintokei | E8 | Alpha |
| Daily Drawdown | 3% | Removed | 4% |
| Overall Drawdown | 6% | 5% | 6% |
| Drawdown Type | Equity | Balance | Equity |
Daily Drawdown
Daily drawdown caps how much you can lose in one trading day. It stops you from blowing up your account with a single bad move.
Fintokei enforces a 3% daily drawdown, keeping things tight and pushing careful trading. Alpha Capital Group sets a 4% daily drawdown, offering a bit more flexibility while still holding you in check.
E8 Markets skips daily drawdown limits entirely. This suits experienced traders who can handle their own risk, but for beginners, it’s not preferable.
New traders need these restrictions to stay disciplined and avoid big losses.
Overall Drawdown
Overall drawdown limits total losses across the challenge. It acts as a safety net for your account.
E8 Markets caps this at 5%, a strict limit to keep risk under control.
Fintokei and Alpha Capital both allow a 6% overall drawdown, giving an extra 1% of room. That slight buffer helps beginners, as long as a clear limit guides them.
Drawdown Type
Drawdown type defines how losses are calculated, changing how strict the rules feel.
Fintokei and Alpha Capital Group use equity-based drawdown, tracking current account equity, including open trades.
It’s strict, with unrealised losses counting immediately, forcing you to watch trades closely.
E8 Markets uses balance-based drawdown, based on end-of-day balance, ignoring open trades. This is less restrictive, better for experienced traders who can manage floating losses.
Best for Beginners
Fintokei and Alpha Capital Group tie as the best for beginners. Their daily and overall drawdown limits, set clear daily risk boundaries and helps traders stay on track.
E8 Markets’ lack of daily drawdown and balance-based approach work for experienced traders but not beginners, who need firm restrictions for risk management.
The best and most popular drawdown type is balance-based. However, based on the lack of daily drawdown limit of E8, the best option for beginners would be a tie between Fintokei and Alpha Capital
Price Comparison: Fintokei, Alpha Capital Group, and E8 Markets
| $25K Price Comparison | |||
|---|---|---|---|
| Criteria | Fintokei | E8 | Alpha |
| Price (USD) | $134 | $138 | $157 |
Account Price Comparison
To compare the cost of three-step challenge accounts, we focus on Fintokei, Alpha Capital Group, and E8 Markets, with prices converted to US dollars for clarity.
For this side-by-side comparison, we’ve taken Fintokei’s €20,000 three-step account, which is approximately $23,000, and rounded it to $25,000 for simplicity.
Fintokei’s €20,000 three-step account, equivalent to roughly $23,000, is priced at $134.
This makes Fintokei a highly affordable option. E8 Markets offers a $25,000 three-step account (E8 Track) for $138, slightly higher than Fintokei but still competitive.
Alpha Capital Group’s $25,000 three-step account, however, is the most expensive at $157, making it the priciest choice among the three.
Most Affordable 3 Step Challenge
Fintokei stands out as the most affordable choice for beginners, offering a €5,000 three-step account, the smallest account size among the three; for just €44.
This low entry point makes prop trading accessible without a hefty upfront cost.
Even better, Fintokei is currently offering a limited-time 50% discount, slashing the price further and cementing its position as the best budget-friendly option for new traders.
If the Fintokei StartTrader challenge suits your trading style and you’re seeking the best prop firm account for beginners, grab Propvator’s Fintokei discount code from their page here and get a 3 Step Challenge from Fintokei at only €22!
Prop Firm Account for Beginners
Another factor makes the StartTrader challenge suitable for beginners is the accessibility to educational video courses which will provide you with information and knowledge about passing prop firm challenges and learning about trading in general.
This means you can potentially earn profits while you learn more about trading, not only from video courses, but from live action and trading on your funded account which is the best way to learn!
Scaling Prop Firm Account for Beginners
The StartTrader scaling plan is straightforward. To scale up, you need to hit a 10% profit target after closing all trades, and this needs to happen over at least 2 consecutive months, so you can scale every 2 months if you’re on track.
As you move up the levels, your account can grow: from €6,250 to €7,500, then €10,000, and so on, all the way to €50,000. The other starting capitals follow a similar path, reaching up to €200,000, €500,000, or even €1,000,000 at the highest level.
Plus, at Level 3, you get offered a contract with their Portfolio Management company, which is a nice bonus. And as you progress through the stages, you can scale your account all the way up to a grand total of €1 million.
That’s a solid option if you’re looking to grow your trading potential over time. You can check out the full scaling breakdown in the table below.
Fintokei Discount Code
If the Fintokei StartTrader challenge fits your approach and you’re looking for the best prop firm account for beginners, be sure to click on the link here to get 50% Off and get started with only €22!