Challenge Fee

Challenge fee — sometimes called evaluation fee — is the upfront cost a trader pays to take a prop-firm evaluation. Typical fees range from $50 for a small account ($10k–$25k) to $1,000+ for larger accounts ($200k+). For one-step evaluations and instant-funding accounts, the fee structure is similar but the cost is usually higher per dollar of account size.

Many firms refund the challenge fee with the first payout on the resulting funded account. This is a marketing feature but worth confirming — refund conditions vary, with some firms requiring a minimum profit level or minimum trading days before the refund unlocks.

The challenge fee is the firm's primary revenue source. The economics work because most evaluations fail; the firm collects fees from the entire population and pays out to the small fraction that pass. Discount codes (often 10–30% off via affiliate links) are widespread enough that paying full price is rare. When comparing fees across firms, calculate fee as a percentage of advertised account size — and remember the account is almost always simulated, so the relevant cost comparison is against the realistic expected payout from passing, not the headline account number.