Top 3 Step Prop Firms in 2025

Looking for a slower, more structured path to a funded trading account? This page highlights the best 3 step prop firms that offer multi-stage evaluations. Designed to reward long-term discipline, these firms are ideal for traders who value structure, lower pressure and gradual scaling.

Use our comparison tool to filter firms by drawdown, evaluation length, asset types and platform access.

What Is a 3 Step Prop Firm

A 3 step prop firm uses a three-phase process to evaluate a trader's skill and risk management. Each phase has its own profit target, rules and timeframe. As you progress, the firm verifies your consistency and adaptability under changing conditions. Once you pass all three steps, you receive a funded account and can begin earning a profit split.

3 step models are less common but favoured by firms focused on long-term trader development.

Who Should Choose a 3 Step Prop Firm

3 step prop firms are ideal for:

• Traders who want a lower-pressure environment
• Beginners seeking structure and time to adjust
• Swing traders who prefer extended evaluation periods
• Traders who value long-term funding and sustainable scaling
• Those building a track record in a step-by-step format

If you're serious about building prop trading as a career, 3 step models offer one of the most structured routes to funding.

Best 3 Step Prop Firms by Category

1. Best Overall 3 Step Prop Firms

• [Audacity Capital] – A long-standing UK-based firm with consistent rules
• [Lux Trading Firm] – Offers a professional 3 phase structure with capital growth
• [City Traders Imperium] – Transparent rules and scaling with account protection

2. Best for Swing and Position Traders:

• [Lux Trading Firm] – Long trading periods, no forced closures and weekend holding
• [City Traders Imperium] – Ideal for macro and technical swing traders
• [Audacity Capital] – Allows longer holds, real-time feedback and coaching

3. Best for Structured Trader Development:

• [Lux Trading Firm] – Offers progression from evaluation to capital expansion
• [City Traders Imperium] – Educational focus and mentorship included
• [The5ers] – Hybrid evaluation model with trader support and staged funding

How 3 Step Evaluations Work

Each firm structures their three steps differently, but the basic format is:

Phase 1

• Prove profitability with strict drawdown and target rules
• Often includes minimum trading days and asset restrictions

Phase 2

• Lower target or flat requirement to test consistency
• Continued adherence to daily and total drawdown rules

Phase 3

• Real-time verification, often with additional compliance checks
• Focus on long-term habits, including capital preservation

After completing all three steps, traders are funded and placed on a scaling plan with increasing capital.

Key Features Compared to 1 and 2 Step Models

Trading Rules and Evaluation Criteria

Profit Targets

Typically 5 to 10 percent in Phase 1, then 2 to 5 percent in subsequent phases.

Drawdown

Daily drawdown limits of 2 to 5 percent, with overall drawdown between 6 and 10 percent.

Holding Rules

Firms like [Lux Trading Firm] and [City Traders Imperium] allow weekend holding and swing trading.

Consistency

Many 3 step firms assess consistent lot sizing, behaviour under pressure and risk discipline.

Coaching and Feedback

Some firms include trader development, feedback or webinars as part of the program.

Pros and Cons of 3 Step Prop Firms

Pros

• Ideal for long-term traders
• Very structured and educational
• Often include support or mentorship
• Designed to build sustainable habits
• Clear pathway to capital scaling

Cons

• Slower access to funding
• Fewer firms offer this model
• Payouts start later than other models
• Not ideal for aggressive or high-frequency traders