NFP. FOMC. CPI. These three acronyms move markets more than almost anything else. For traders who exploit volatility spikes, news events are the holy grail. But prop firms have complicated relationships with news trading — and understanding their rules is essential to keeping your funded account.
Why Prop Firms Restrict News Trading
Prop firms use simulated or brokered environments. During high-impact news releases, spreads widen dramatically, slippage occurs, and short-term price spikes can trigger stop-losses that wouldn't occur in 'real' markets. Firms that allow news trading absorb more risk — so many restrict it to protect their business model.
The Three Categories of News Rules
- Full ban — no positions open 2–5 minutes before and after red-folder events (NFP, FOMC, CPI)
- Soft restriction — you can hold positions but cannot open new ones during the window
- No restriction — news trading fully allowed (FTMO, some Funding Pips accounts)
How to Check Your Firm's News Policy
Go to your firm's terms and conditions — not the marketing page. Search for 'news' and 'economic calendar.' If the policy is vague, email support before you trade a news event. A $150 challenge fee is not worth risking over unclear documentation.
Key check: Does the firm define the restricted window as 2 minutes, 5 minutes, or 15 minutes? The difference matters enormously for your strategy.
Strategies for Firms That Restrict News
If your firm bans news trading, the strategy is simple: flatten all positions before the restricted window and wait for the dust to settle. Most traders find that the post-news trend continuation trade (entering 15–30 minutes after the release once direction is confirmed) is actually more reliable than the spike itself.
Strategies for Firms That Allow News
- Straddle approach: place buy stop and sell stop 5–10 pips outside current price before release
- Cancel the losing side immediately after initial move confirms direction
- Use half your normal position size — spread widening costs more than typical entry
- Set hard stops: initial move reversals after news spikes are violent and fast
The Economic Calendar Is Non-Negotiable
Bookmark Forexfactory.com or Investing.com's economic calendar. Filter for red-folder (high-impact) events. Every Sunday, check the week ahead. Never open a trade within 30 minutes of a major release without knowing your firm's policy.
The biggest prop firm rule violations aren't intentional — traders forget to check the calendar. Build the calendar check into your pre-session routine without exception.
- FundCoupon Team
Best News-Friendly Prop Firms
- FTMO — explicitly allows news trading on standard accounts
- Funding Pips — no news restrictions on most account types
- Funded Next — news trading allowed with standard position sizing
- Hantec Trader — real broker backing means real market conditions during news
News trading can be a significant edge — but only if you know the rules cold. Treat economic calendar management as a core part of your trading system, not an afterthought.
Explore more on FundCoupon. Browse forex firms, futures firms, and crypto. Top picks: FTMO (ftmo.com), Apex Trader Funding (apextraderfunding.com), FundedNext (fundednext.com), Topstep (topstep.com).
FundCoupon Verification Note
Promotions, rules, and checkout terms can change. Verify the current offer and evaluation rules on the official firm website before paying for any challenge.