What is Verification (Phase 2)?
The second evaluation phase on a two-step prop firm challenge — usually a smaller profit target proving the Phase 1 pass was repeatable.
The verification phase is the second stage of a two-step prop firm evaluation, sometimes also called Phase 2. After a trader passes Phase 1 by hitting the initial profit target — typically 8-10% — a new account is opened with the same starting balance, the same drawdown rules, and a smaller profit target, typically 4-5%.
The purpose is to filter out lucky single-phase passes. A trader who passed Phase 1 with one oversized trade rarely repeats it in Phase 2; a trader with a real edge clears the halved target with much less effort because the math is simply half as hard.
The verification phase usually has its own time window — at FTMO, Phase 2 has a 60-day window vs Phase 1's 30 days. The cool-down between phases is short (1-3 business days for account creation), and the original challenge fee covers both phases. Most failures in two-step challenges happen in Phase 1; once a trader passes Phase 1, the Phase 2 completion rate is dramatically higher.