Overview
What is the Free Challenge?
The Free Challenge (also known as the $1 or $5 Challenge) is a 2-phase evaluation:
Phase 1: 10% profit target
Phase 2: 5% profit target
Maximum Drawdown: 8% (static)
Daily Drawdown: 5%
When completed, you will be funded with a $5,000 2 Step Challenge account. The only difference is the profit split, which is set at 50% instead of 80%.
A small activation fee of $1–$5 applies to cover platform costs.
Trading Rules
Stop Losses
A stop-loss is mandatory in funded accounts and must be set within 5 minutes of trade entry.
“Fake” stop-losses (where a hit would exceed daily or max DD) are not allowed.
News Trading
Allowed during both challenge and funded phases.
Expert Advisors (EAs)
❌ Not allowed on Free Challenge accounts.
Copy Trading
Allowed for copying your own trades; copying others in the same timeframe is not permitted.
Averaging Into Trades
Allowed, but trades in the same direction on the same pair, opened close together, are treated as one Trade Idea when checking consistency rules.
Tick Scalping
Please avoid any attempts at tick scalping, and keep trades open for over 2 minutes.
Consistency Rules
Profit Consistency (from 1st June 2025)
No single trading day may equal or exceed 25% of your total profit for that payout period.
Example: If you make $1,000 in one day, you must reach $4,000 total profit before you’re eligible to request a payout.
Important: Consistency is calculated on total profit, not the profit cap. (e.g., on $10,000 total profit, 25% = $2,500, regardless of a 5% cap on withdrawals.)
You cannot request a payout until this rule is satisfied.
Lot Size Consistency
Checked at payout.
Based on your average lot size:
Max = average +100%
Min = average –75%
Example: Avg 1.0 lot → Max 2.0 lots, Min 0.25 lots.
Trade Ideas: Multiple positions in the same direction on the same pair opened within a short window (e.g., 5–10 minutes) are aggregated as one Trade Idea for both lot size and profit consistency.
Drawdown Rules
Maximum Drawdown (8%)
Equity may not drop more than 8% below the initial balance at any time.
Example: On a $5,000 account, equity must always stay ≥ $4,600.
Daily Drawdown (5%)
Recalculated daily at 5pm EST using the higher of balance or equity; limit = that higher value minus 5% of the initial balance.
Example 1 (floating profit): $5,000 account; 5pm equity = $5,200 → Next day, equity must stay ≥ $4,950.
Example 2 (floating loss): 5pm equity = $4,800, balance = $5,000 → Use balance; next day equity must stay ≥ $4,750.
Payouts
Profit Split
Fixed at 50/50 on Free Challenge accounts.
Profit Cap & Max Withdrawal
Profit cap = 5% of initial balance per cycle.
Example: On a $5,000 account, max withdrawal per cycle = $250.
Payout Schedule
Instant payout requests are available once you meet the rules.
Covered by the 24-hour payout guarantee.
24-Hour Payout Guarantee
Payouts are processed within 24 business hours.
If delayed, you’ll receive an extra 10% on your profit split.
Exceptions: weekends/holidays, compliance checks, or Rise onboarding delays.
Rule Breaches & Payout Denials
Soft Breaches (Profit Deductions)
If you break a rule (e.g., Lot Consistency, Stop Loss rule, or other restrictions), the profit from that trade is deducted from your total profit.
If deductions are less than your profit, the reduced payout is still processed.
If deductions are greater than your profit (e.g., $3,000 profit but $4,000 deducted), your payout is denied.
You have a maximum of 20 soft breaches before account closure, this is detected at payout stage. Not automatically
Payout Denial Penalties
1st denial: profit split halved.
2nd denial: account closed.
Resets
Free Reset
❌ Not available on Free Challenge accounts.