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What happens when I fail a prop firm challenge and what are my reset options?

📌 Quick Definition

When a trader breaches a rule or fails to hit the target within the time limit, the challenge is failed. Most firms offer a paid reset or a discounted retry. Some firms now offer free resets or partial refunds for rule-breach failures where the trader was close to passing.

What happens when I fail a prop firm challenge and what are my reset options?

When a trader breaches a rule or fails to hit the target within the time limit, the challenge is failed. Most firms offer a paid reset or a discounted retry. Some firms now offer free resets or partial refunds for rule-breach failures where the trader was close to passing.

Key Points

  • Challenge failure triggers a paid reset or new purchase
  • Reset fees are usually discounted from original price
  • Free resets are offered by select firms (e.g. BrightFunded, FundingPips)
  • Rule breaches (drawdown) fail the challenge immediately
  • Some firms offer "second chance" discounts via email after failure

Firm Comparison

FirmPolicyThresholdConsequence
FTMOChallenge ResetAvailable for a feeResets progress and drawdown
FundingPipsChallenge ResetNot offeredMust repurchase
FXIFYChallenge ResetNot typically offeredRepurchase required
BrightFundedChallenge ResetNot offeredRepurchase required
The5ersChallenge ResetNot offeredRepurchase required
E8 MarketsChallenge ResetNot offeredRepurchase required
Finotive FundingChallenge ResetNot offeredRepurchase required
Think CapitalChallenge ResetNot offeredRepurchase required

Frequently Asked Questions

What is a challenge reset?

It is an option some firms offer to reset your challenge account balance and drawdown metrics to starting conditions without repurchasing.

How much does a challenge reset cost?

At FTMO, resets are typically offered at a discounted fee compared to buying a new challenge.

Should I reset or repurchase after a breach?

Compare the reset fee vs. a new challenge price — sometimes repurchasing with a promo code is cheaper.

Does a challenge reset affect my trading history or statistics?

Yes — a reset clears your existing stats and starts fresh from the original account conditions.

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