Why news trading rules matter when choosing a prop firm
News trading is one of the most divisive strategies in prop trading. Some traders build their entire approach around high-impact macroeconomic events, while others avoid them entirely. What is clear is that each prop firm's policy on news trading can be a deciding factor when choosing where to trade.
The challenge is that not every firm treats this rule the same way. Some allow it without restrictions, others permit it with specific conditions, and several prohibit it outright. Understanding these differences can save you headaches and, more importantly, prevent you from losing a funded account over something you did not know about.
Firms that allow news trading without restrictions
Let's start with the good news. A considerable number of prop firms allow trading during news events without any limitations. If your strategy depends on the volatility generated by economic data releases, these are the firms you should consider:
Forex and CFDs
- Funded Trading Plus allows news trading across all programs without any restrictions.
- Finotive does not impose any limitations regarding news events.
- City Traders Imperium offers complete freedom to trade during news.
- Funded Elite allows news trading without conditions.
- Fintokei has no news restrictions on any of its accounts.
- Lark Funding allows trading during news freely.
- Klein Funding does not apply news trading restrictions.
- Sure Leverage Funding allows trading without limitations during events.
- Funded Trader Markets does not restrict news trading.
- My Crypto Funding allows news trading without conditions.
- Darwinex Zero has no news restrictions.
Futures
- Apex allows news trading on its futures accounts.
- Bulenox does not impose limitations during news events.
- Earn2Trade allows trading during news without restrictions.
- TradeDay offers complete freedom regarding news trading.
- Top One Futures allows news trading without conditions.
- FundedNext Futures does not restrict trading during news.
- FXIFY Futures allows trading during high-impact events.
- Trade The Pool allows news trading without limitations.
Firms that allow news trading with conditions
This is the largest and, honestly, the most complicated group. These firms allow trading during news but impose restrictions that vary enormously between them. This is where you need to read the fine print.
Time window restrictions
The most common condition is a time window around the event during which you cannot open or close positions. The timeframes vary:
2-minute window (before and after):
- FTMO restricts the execution of new trades or closing existing ones on the affected instrument during 2 minutes before and after the event, but only on Standard accounts. Swing accounts have no restrictions.
- Blueberry Funded does not allow opening new positions in that window, although it does allow closing or managing existing trades. Take-profits and stop-losses execute normally.
- Goat Funded Trader allows trading during news, but any trade opened or closed within 2 minutes before or after can generate a maximum profit of 1% of the initial balance.
- Maven directly prohibits opening or closing trades 2 minutes before and after red-folder events, including take-profits and pending orders.
3-minute window:
- Audacity prohibits opening new trades or increasing existing positions within 3 minutes before and after high-impact economic releases.
- Ment Funding restricts opening new positions in a total 6-minute window (3 before and 3 after).
5-minute window:
- Alpha Capital Group applies a 5-minute window on most accounts (Alpha Pro 6%, Alpha One, Alpha Three), reduced to 2 minutes on Alpha Pro 8%/10%.
- forTraders only restricts news trading on funded accounts: you cannot open trades 5 minutes before or after, although closing is allowed. Evaluation phases have no restrictions.
- Blue Guardian prohibits opening or closing positions 5 minutes before and after red-folder news on funded accounts. Profits generated in that window may be removed, but it does not count as a violation. Evaluation phases are unrestricted.
- BrightFunded prohibits trading 5 minutes before and after the event. It is a soft breach: you do not lose the account, but the profit from that trade gets deducted.
- Wall Street Funded restricts trading with a 4-minute window before and after red-folder macroeconomic events.
Restrictions by account type or program
Several firms apply restrictions only on certain programs or phases:
- E8 Markets allows news trading in all evaluation phases and on Signature accounts. However, in the funded phase of One accounts, opening or closing positions 5 minutes before and after the event is not allowed.
- The5ers allows news trading on Hyper-Growth and Bootcamp programs (except bracketing), but on High Stakes it applies a profit deduction for trades executed 2 minutes before or after the news.
- The Trading Pit allows news trading except on the 100,000 and 200,000 dollar accounts, where trading 2 minutes before or after high-impact news is not permitted.
- FXIFY restricts news trading only on Lightning and Instant Funding plans (5-minute window), while the rest of the programs have no restrictions.
- Hantec Trader allows news trading on Challenge accounts without restriction, but Instant accounts do not allow opening, closing, or modifying positions 3 minutes before or after high-impact news.
- Top One Trader allows news trading in the evaluation phases of One Step and Two Step but prohibits it in the funded phase and on Instant Funding. Instant Prime accounts allow it with an add-on.
- Think Capital allows news trading by default on Dual Step Swing, but on Lightning, Nexus, and Dual Step Intraday it is only allowed with a paid add-on.
- Instant Funding has a complex system with different rules depending on account type. Challenge and Micro accounts allow news trading freely, while funded accounts require an add-on or prohibit it entirely.
Profit percentage restrictions
Some firms do not prohibit trading during news but limit the profits obtained:
- FundedNext only counts 40% of the profit from trades opened or closed within 5 minutes before and after a high-impact event.
- FundingPips does not apply restrictions in evaluation phases or on Payout On Demand accounts, but on regular funded accounts, profits from trades executed 5 minutes before or after news are not counted unless the trade was opened 5 hours before the event. On FundingPips Zero, trading during news can result in account termination.
- Funding Traders allows news trading on Pro accounts, but no more than 30% of total profits can come from news-influenced trades. Instant Funding accounts completely prohibit trading during news.
Special cases
- AquaFunded allows trading during news, but any trade opened or closed 5 minutes before or after red-folder events is subject to profit removal. It does not count as an account violation.
- Crypto Fund Trader allows news trading in general, but on the Ascend program the maximum theoretical loss cannot exceed 2% of the initial balance on trades opened 2 minutes before or after news.
- QT Funded prohibits manual trades 5 minutes before, during, and after high-impact economic news, but positions or limit orders placed more than 5 minutes before may remain open. QT Prime On Demand accounts do not have this limitation.
Firms that prohibit news trading
A smaller group directly prohibits trading during news events:
- Atmos Funded does not allow trading 2 minutes before or after high-impact events.
- AquaFutures prohibits holding positions or pending orders 2 minutes before or after high-impact news.
- Maven (mentioned above) prohibits opening or closing any trade in that window.
- Ment Funding (mentioned above) restricts opening new positions in a 6-minute window.
How to choose the right firm for your strategy
If you trade news as your primary strategy
Your choice should focus on the firms in the first group: those that allow news trading without restrictions. Funded Trading Plus, Finotive, City Traders Imperium, and Fintokei are solid options that will not limit you at all. For futures, Apex, Bulenox, Earn2Trade, and TradeDay are the safest bets.
If you trade news occasionally
You can consider firms with moderate restrictions. FTMO with its Swing accounts, E8 Markets with Signature, or The5ers with Hyper-Growth give you the flexibility you need. The key is knowing exactly which time window applies and on which account type.
If your strategy does not depend on news but you want no surprises
Even if you do not actively trade news, the volatility generated by high-impact events can trigger stop-losses or take-profits. On firms with strict restrictions like Maven, Atmos Funded, or Ment Funding, a stop-loss triggered during the restricted window could count as a violation. Keep this in mind when choosing.
Practical tips
Read the updated rules: News trading policies change frequently. Always verify current information directly on each firm's page.
Check which account you will be trading: Many firms apply different rules depending on the phase (evaluation vs funded) or program type. Do not assume that what applies during evaluation also applies on the funded account.
Know the exact time window: The difference between 2 and 5 minutes may seem small, but during events like the NFP or FOMC decisions, the market can move violently in seconds.
Watch out for pending orders: Some firms not only restrict manual execution but also the triggering of stop-losses, take-profits, and limit orders during the restricted window.
Compare before deciding: Use our forex firms comparator or the futures comparator to view the policies of different firms side by side.
Where to find more information
At TheGodFunded we keep the rules of each firm up to date. You can check the complete details of any of the firms mentioned in our firms listing and filter by the features that interest you. If you are looking for forex firms specifically, visit our forex firms listing, or if you prefer futures, the futures firms listing.
News trading can be a powerful tool when used correctly and with the right firm. The key is knowing the rules of the game before you sit down at the table.
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