Which Prop Firms Allow News Trading?
News trading is one of the most exciting (and controversial) styles of trading in the proprietary trading industry. While economic events like Non-Farm Payrolls, CPI inflation releases, FOMC interest rate decisions, and GDP announcements can create huge market opportunities, they also bring significant volatility and risk.
This is why many prop firms have strict rules around trading during major news events. Some prohibit opening or closing trades within a certain time window, while others allow unrestricted news trading.
In this guide, we’ll explain:
- What news trading is
- Why prop firms restrict it
- Which prop firms allow news trading
- How different firms enforce their rules
- How to choose the right prop firm if you want to trade economic news
Whether you’re an experienced scalper or simply want the freedom to trade every market opportunity, this guide will help you choose the right funded trading firm.
What Is News Trading?
News trading is the practice of opening or managing trades during high-impact economic announcements that can move financial markets dramatically within seconds.
Some of the biggest market-moving events include:
- Non-Farm Payrolls (NFP)
- Consumer Price Index (CPI)
- Federal Reserve (FOMC) interest rate decisions
- ECB and Bank of England announcements
- GDP reports
- Employment data
- Retail Sales
- Inflation reports
These releases can create explosive price movements, increased volatility, and wider spreads. For skilled traders, this potential volatility can provide excellent opportunities.
However, execution becomes much more difficult due to:
- Rapid price changes
- Slippage
- Increased spreads
- Lower liquidity
- Delayed order execution
Because of these factors, news trading requires careful risk management and fast decision-making.
Why Do Prop Firms Restrict News Trading?
At first glance, it might seem strange that prop firms limit trading around major news events. After all, trading is what funded traders are supposed to do.
The reason comes down to risk management.
Many prop firms use liquidity providers and risk models that become more expensive during periods of extreme volatility. Large price gaps can make it difficult to hedge positions, while sudden spikes increase the likelihood of traders exceeding expected risk levels.
Some firms also want to discourage “gambling” behaviour, where traders hold oversized positions hoping for a lucky move during a news release.
Common restrictions include:
- No opening trades within 2–5 minutes before high-impact news.
- No closing trades shortly after major announcements.
- No increasing position size around news.
- Profits earned during restricted periods may be removed.
- Account breaches for repeated violations.
Each firm has different policies, making it essential to read the rules before starting a challenge.
Which Prop Firms Allow News Trading?
Not every firm treats news trading the same way. Broadly speaking, prop firms fall into three categories.
1. Firms That Fully Allow News Trading
These firms generally allow traders to open, close, and manage positions during major economic releases.
They are often the preferred choice for:
- Scalpers
- Day traders
- Volatility traders
- Experienced news traders
The biggest advantage is flexibility. You’re free to trade whenever opportunities arise without worrying about violating timing rules. However, you’ll still need to manage wider spreads and slippage during volatile periods.
2. Firms That Restrict News Trading
This is the most common approach.
Many prop firms prohibit opening or closing positions within a defined time window around high-impact news. Typical restrictions include:
- No trading 2 minutes before news.
- No trading 2 minutes after news.
- Existing trades may be allowed if they were opened well before the announcement.
- Partial closes may also be restricted.
These rules aim to reduce excessive volatility risk while still allowing normal day trading.
3. Firms With Hybrid Rules
Some firms offer different account types with different news policies.
For example:
- Standard accounts with news restrictions.
- Swing accounts allowing overnight and news trading.
- Special add-ons that remove restrictions for an additional fee.
These options provide greater flexibility depending on your trading style.
How to Compare News Trading Rules
When choosing a prop firm, don’t just ask whether news trading is allowed. Instead, compare the details. Important questions include:
- Can you open trades during news?
- Some firms prohibit new positions entirely.
- Can you close trades?
- Others allow exits but not entries.
- Can you hold positions through news?
- Swing traders often care more about this than opening fresh positions.
- Which news events count?
- Some firms only restrict “red folder” events, while others include medium-impact announcements.
- Are crypto and indices included?
- Policies often differ across asset classes. Small differences in wording can have a major impact on your trading strategy.
Why Funded Trading Plus Is a Great Choice for News Traders
If your trading strategy revolves around major economic announcements, choosing a prop firm with flexible trading rules can make a significant difference. Many firms impose restrictions around high-impact news events, meaning you may be unable to open, close or manage trades during releases.
Funded Trading Plus takes a different approach by allowing traders to trade the news without dedicated news-trading restrictions. This gives traders the freedom to execute their strategy during some of the market’s most volatile periods without worrying about violating timing rules.
For experienced news traders, this flexibility offers several advantages:
- Trade major economic events freely without news-specific trading restrictions.
- Execute your own strategy instead of adapting it to fit news trading rules.
- Hold and manage positions naturally around scheduled economic announcements.
Of course, unrestricted news trading doesn’t eliminate the risks. High-impact events can lead to wider spreads, slippage and rapid price movements, so strong risk management remains essential. Successful news traders understand that discipline, position sizing and a well-tested strategy matter far more than simply trading every announcement.
If you’re looking for a prop firm that gives you the flexibility to trade the markets your way, Funded Trading Plus is a strong option. By removing news-trading restrictions, traders can focus on what matters most.
Developing a consistent edge and executing their trading plan with confidence.
Frequently Asked Questions
Can you trade Non-Farm Payrolls on a funded account?
It depends on the prop firm. Some allow unrestricted NFP trading, while others prohibit opening or closing trades within a specified window around the release.
What happens if you break a news trading rule?
Consequences vary by firm. Depending on the policy, profits from the trade may be removed, the trade may be cancelled, or the account could be breached.
Is news trading profitable?
It can be, but it’s also one of the riskiest trading styles. High volatility creates opportunity, but it also increases slippage, spreads, and execution risk. Proceed with caution and understand the risks involved.
Do swing accounts usually allow news trading?
Many swing-style accounts offer greater flexibility, including holding trades through economic announcements, though each firm’s rules differ.
When choosing a prop firm, don’t just ask whether news trading is allowed. Instead, compare the details. Important questions include:
Final Thoughts
News trading remains one of the most popular trading styles among funded traders, but it’s also one of the easiest ways to accidentally break a prop firm’s rules.
Before purchasing a challenge, always read the firm’s trading conditions carefully. Understanding whether you can trade NFP, CPI, FOMC meetings, or other high-impact events can save you from costly mistakes later.
If your strategy relies on volatility and fast-moving markets, choosing a prop firm that supports news trading gives you the freedom to trade your edge without worrying about unnecessary restrictions.
Ultimately, the best prop firm isn’t simply the one with the biggest profit split, it’s the one whose rules align with the way you trade. By selecting a firm and challenge that fits your strategy, you’ll spend less time worrying about restrictions and more time focusing on consistent, disciplined trading and growing your funded account.
Disclaimer: All trading activity with Funded Trading Plus takes place in a simulated environment using virtual funds. No real trading capital is provided or traded. Any payouts are calculated from simulated profits in accordance with the applicable program Terms & Conditions.
Participation involves a performance-based evaluation only and does not involve financial investment or the trading of real capital. This article is provided for educational purposes only and does not constitute financial or investment advice. Participation in a funded trading programme does not guarantee success, funding, or payouts.
Individual results will vary, and evaluation performance differs between participants. Past performance is not indicative of future results.