Prop Firm News Trading Rules (2026): Which Firms Allow Trading the News
News trading rules at FTMO, The5ers, FundedNext, FundingPips, Topstep, Lucid, My Funded Futures, E8 and more: the window, which phase it applies to, and the penalty. Checked 13 November 2026.
By Hristo Skulev · Updated · 8 min read
Most prop firms allow news trading during the challenge and restrict it on the funded account. The usual rule bans opening or closing trades in a window of 1 to 5 minutes either side of a high-impact release, such as CPI, NFP or an FOMC decision, on instruments tied to that news. Holding a position opened earlier is usually allowed, but at most firms a stop, target or pending order that fills inside the window counts as a trade. The penalty ranges from losing that trade's profit to losing the account.
Futures firms tend to be more relaxed than forex and CFD firms. Several allow news trading on every account, while Topstep and My Funded Futures restrict the biggest releases.
We checked every rule below on the firm's own help centre, FAQ or rules page on 13 November 2026. Where a firm's page couldn't be opened directly, we used its own text as shown in search results and say so. Firms change these rules often, so check the linked page before you trade.
News trading rules by firm
Forex and CFD firms
| Firm | Challenge | Funded account | Window | Penalty |
|---|---|---|---|---|
| FTMO (standard) | Allowed | Restricted | 2 min before and after | Can end the account |
| FTMO Swing | Allowed | Allowed | None | None |
| The5ers High Stakes | Restricted | Restricted | 2 min before and after | Soft breach: profit removed |
| The5ers Hyper Growth, Bootcamp | Allowed, no bracketing | Allowed, no bracketing | None | None stated |
| FundedNext Stellar | Allowed | Profit split cut | 5 min before and after | Profit counts at 40% |
| FundingPips | Hold through news; no spike trading | Restricted | 5 min before and after | That trade's profit removed |
| E8 One | Allowed | Restricted | 5 min before and after | Profit removed at payout |
| Blue Guardian 1-Step Standard | Allowed | Restricted | 5 min before and after | Profit removed |
Futures firms
| Firm | Evaluation | Funded account | Window | Penalty |
|---|---|---|---|---|
| Topstep | Minis blocked, micros capped | Minis blocked, micros capped | 5 min before and after Tier 1 news | Orders blocked by the platform |
| My Funded Futures | Allowed | No positions or orders | 2 min before and after Tier 1 news | Not stated |
| Take Profit Trader | Allowed | Must be flat | 1 min before and after | PRO: account fails; PRO+: order blocked |
| Alpha Futures | Allowed | No orders executed | 2 min before and after | Not stated on its pages |
| Lucid Trading (Flex, Pro, Direct) | Allowed | Allowed | None | None |
| LucidDaily | — | Not allowed | Red folder news | Hard breach |
| FundedNext Futures | Allowed | Allowed | None | None |
| Blue Guardian Futures Standard | Allowed | Allowed | None | None |
| Apex Trader Funding | Allowed for your normal strategy | Allowed for your normal strategy | None | Orders on both sides of news prohibited |
The details that catch traders out
FTMO. Only events marked "Restricted event" on FTMO's own economic calendar count, and only on symbols containing the affected currency. A USD release covers USD pairs, gold, US indices and the dollar index. The restriction covers stop-loss, take-profit and pending-order fills, but a position opened more than 2 minutes before the release can stay open. It doesn't apply to the Challenge and Verification, or to Swing accounts, which have 1:30 leverage. Source: FTMO FAQ.
The5ers. On High Stakes, executing an order from 2 minutes before to 2 minutes after high-impact news, by the Forex Factory red-folder calendar in server time, is a soft breach. Profits from those trades are deducted and losses stay. Holding a trade through the news is allowed, but a pending order that fills inside the window counts. The page doesn't say whether the rule is limited to funded accounts, so assume it applies in the evaluation too. On Hyper Growth and Bootcamp, news trading is allowed except bracket strategies, meaning a buy stop and a sell stop placed around the release. Sources: High Stakes, Hyper Growth and Bootcamp.
FundedNext. The challenge phases aren't restricted. On funded and Stellar Instant accounts, profit from trades inside a 5-minute window either side of high-impact news on the traded symbol counts at 40%, while losses count in full. Its help centre says stop, target and pending fills count, and a partial close inside the window affects the whole trade. Futures accounts have no news restriction. Source: FundedNext rules.
FundingPips. In the evaluation you can hold trades through news, but deliberately trading the spike can close the account. On the funded (Master) account, profit from trades opened or closed within 5 minutes of a restricted event on the affected currency is deducted. Trades opened at least 5 hours before the event are exempt. FundingPips Zero is stricter: no opening, closing or holding within 10 minutes either side. Source: FundingPips help centre (read via search results).
Topstep. Topstep enforces its rule in the platform instead of penalising you afterwards. For 5 minutes either side of Tier 1 releases (CPI, NFP, PPI and FOMC), new opening trades in equity index and metals minis are blocked and micros are capped. Energies, rates and FX are unaffected, and existing positions can be held. In Central Time, the windows are 7:25 to 7:35 for CPI, NFP and PPI, 12:55 to 1:05 for the FOMC decision and 1:25 to 1:35 for the press conference. Separately, Topstep lists trading full maximum size into news as a prohibited strategy. Source: Topstep risk adjustments.
My Funded Futures. On Rapid and Pro Sim Funded accounts, no positions or orders, including limit orders, may be open 2 minutes before and after Tier 1 news. Tier 1 covers FOMC meetings and minutes, the jobs report and CPI, plus EIA reports for energy traders and agricultural reports for agricultural traders. Evaluations allow it. Straddles and strangles around news are banned on every account. Source: MFFU news policy.
Take Profit Trader. The Test has no restriction. On PRO and PRO+ funded accounts you must be flat, with no working orders, from 1 minute before to 1 minute after the firm's listed events, such as FOMC, NFP and CPI. On PRO the order isn't blocked but the account fails; PRO+ blocks the order. Source: Take Profit Trader.
Lucid Trading. On Flex, Pro and Direct, Lucid says you can enter or exit around news without it being a breach. On LucidDaily, trading red-folder news is a hard breach. Source: Lucid support.
E8 Markets. On E8 One's funded (Performance) stage, opening, closing or setting stops and targets within 5 minutes of high-impact news isn't blocked by the platform, but the profit is deducted when you request a payout. E8's futures programmes have no restriction. Source: E8 One rules (read via search results; E8's general news article is stricter, so check both).
Apex Trader Funding. Apex's prohibited-activities page allows trading during news as part of your normal strategy, but bans placing orders on both sides of a news event. Another Apex page describes news strategies as prohibited, so ask support before you rely on it. Source: Apex help centre (read via search results).
Alpha Futures and Blue Guardian. Both restrict funded accounts and allow news in evaluations. We read their pages through search results only, so check the current wording on Alpha Futures and Blue Guardian before trading.
What counts as "news"
Each firm uses its own list:
- FTMO: events marked restricted on its own calendar.
- The5ers, Alpha Futures, Lucid, Blue Guardian: high-impact (red folder) events on the Forex Factory calendar.
- Topstep, My Funded Futures, Take Profit Trader: a short list of Tier 1 US releases.
- FundingPips: the calendar in its dashboard.
Use the firm's own source, not a general calendar. A release that's red on one calendar can be missing from the firm's list, and the reverse.
News rules for algos and EAs
A bot doesn't know about news windows unless you build one in, and the rule applies to every fill, including stops and targets. Before running an EA on a funded account:
- Add a news filter that stops new entries before each listed event and either closes or leaves positions according to the firm's rule.
- Check exits, not just entries. At FTMO, The5ers and FundedNext, a stop or target that fills inside the window counts.
- Work in the firm's time zone. The5ers uses server time and Topstep uses Central Time.
- Measure what the filter costs. Take your backtest, remove every trade opened or closed inside a news window, and compare the results. If most of the profit came from news spikes, the strategy doesn't suit a firm that restricts them.
Test the challenge before you pay for it
News rules are one of several limits a challenge checks at once. The prop firm challenge simulator in Strategy Lab replays your strategy from every week or month start through FTMO, The5ers, Topstep or custom rules, with daily loss and drawdown checked inside every candle. Its pass rate shows whether the strategy can pass at all, before you add a news filter. For the profit spread, use the consistency calculator. For which strategy types suit challenge rules in general, see the best strategy to pass a prop firm challenge.
Frequently asked questions
- Which prop firms allow news trading?
- In challenges, most do: FTMO, FundedNext, FundingPips, E8 and Blue Guardian all allow it in the evaluation. On funded accounts, FTMO Swing, The5ers Hyper Growth and Bootcamp (except bracketing), Lucid Flex, Pro and Direct, FundedNext Futures and Blue Guardian Futures Standard allow it. Check the firm's current rules before you trade.
- Can I hold a trade through news at a prop firm?
- At most firms, yes, if you opened it before the window. The catch is that a stop, target or pending order filling inside the window usually counts as trading the news. My Funded Futures and Take Profit Trader funded accounts require you to be flat.
- What happens if I trade news on a funded account?
- It depends on the firm. FundingPips, E8 and Blue Guardian remove the profit from those trades. The5ers treats it as a soft breach and removes the profit. FundedNext counts the profit at 40%. FTMO can end the account. Topstep blocks the orders in the platform.
- What is red folder news?
- The highest-impact events on the Forex Factory economic calendar, marked with a red folder icon, such as CPI, NFP, central bank rate decisions and GDP. Several prop firms use it to define restricted news.
- Is news trading allowed in the FTMO Challenge?
- Yes. FTMO's news restriction doesn't apply to the Challenge or Verification. It applies to FTMO Accounts, which are the funded stage, and to FTMO Instant, but not to Swing accounts.
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