What is the news trading rule and which firms restrict it?
Many prop firms restrict trading during high-impact news events (like NFP, CPI, or Fed rate decisions) to reduce volatility-related exploitation. The restriction window is typically 2 minutes before and after the event.
What is the news trading rule and which firms restrict it?
Many prop firms restrict trading during high-impact news events (like NFP, CPI, or Fed rate decisions) to reduce volatility-related exploitation. The restriction window is typically 2 minutes before and after the event.
Key Points
- Usually ±2 minutes around high-impact news events
- Applies to all major economic releases (NFP, CPI, FOMC, etc.)
- Violations typically result in trade removal and profit loss
- Some firms allow news trading entirely — check firm rules
- Restrictions differ between challenge and funded phases at some firms
Firm Comparison
| Firm | Policy | Threshold | Consequence |
|---|---|---|---|
| FTMO | News Trading | Allowed with no open trades 2 min before/after | Account breach if violated |
| FXIFY | News Trading | Allowed — no restrictions on 2-Step Pro | No penalty |
| FundingPips | News Trading | Fully allowed on all plans | No restriction |
| BrightFunded | News Trading | Restricted — no trades 2 min before/after | Account breach |
| Think Capital | News Trading | Restricted on Swing; allowed on Standard | Breach = termination |
| Finotive Funding | News Trading | Fully allowed on all plans | No restriction |
| The5ers | News Trading | Allowed on most plans | Plan-specific |
| E8 Markets | News Trading | Restricted on some plans | Account review |
Frequently Asked Questions
What is the news trading rule in prop firms?
It restricts or bans opening/closing positions within a set window (usually 2 minutes) around high-impact economic news events.
Which prop firms allow news trading?
FundingPips, FXIFY (2-Step Pro), Finotive Funding, and several others fully allow news trading.
What counts as a high-impact news event?
NFP, CPI, FOMC decisions, interest rate announcements, and GDP releases are typically classified as high-impact.
Can I get my account banned for news trading?
Yes — at firms with news trading restrictions, breaching the rule leads to trade invalidation or account termination.