Prop Firm News Trading Rules & Holding Policies
Protect your funded capital from accidental red-folder disqualifications. Complete comparison of 2-minute blackout windows, pending order execution policies, and weekend holding rules across major prop firms.
Prop Firm News Trading Policies (6)
Funding Pips
✅ Zero News Restrictions Top Pick for News Traders100% unrestricted news trading on all evaluation models. Funded Master accounts permit news trading without any 2-minute time restrictions.
FTMO
⏱️ ±2 Min Window RestrictionEvaluation stages have zero restrictions. Standard FTMO Funded accounts prohibit opening or closing trades ±2 minutes around red folder news on affected pairs. Swing accounts permit 100% unrestricted news trading.
Topstep
✅ Zero News Restrictions Top Pick for News TradersCME futures contracts have direct DMA order routing. Traders can trade high-impact news freely, but positions must be flattened before 3:10 PM CST daily.
The5ers
✅ Zero News Restrictions Top Pick for News TradersHigh Stakes and Bootcamp models allow full news trading and weekend holding. Recommended for swing traders holding positions through macroeconomic releases.
FundedNext
⏱️ ±5 Min Window RestrictionStellar 1-Step and 2-Step accounts enforce a ±5 minute restriction on news trading for funded stages. Profits made on news execution are subject to cancellation without account termination.
Alpha Capital Group
✅ Zero News Restrictions Top Pick for News TradersAlpha Pro allows news trading and weekend holding with zero restrictions on both evaluation and funded phases using ACG Markets raw institutional feeds.
Critical Red-Folder Economic Releases & Typical Slippage
Non-Farm Payrolls (NFP) & Unemployment Rate
The primary US labor market barometer. Creates immediate violent volatility spikes and liquidity voids across all USD-denominated instruments.
Consumer Price Index (CPI) Inflation Report
The Federal Reserve's core inflation gauge. Extreme algorithmic momentum shifts and multi-hundred-point Nasdaq runs within seconds.
FOMC Interest Rate Decision & Powell Press Conference
Rate statement release at 2:00 PM followed by live Chair press conference at 2:30 PM. Extreme two-way whipsaws and wide spread widening.
ECB & Bank of England Monetary Policy Decisions
European central bank benchmark interest rate shifts driving sustained directional multi-hour forex trends.
Why Prop Firms Enforce News Trading Bans
The market mechanics, liquidity provider spread blowouts, and risk-desk exposure that govern prop firm news policies.
Liquidity Voids & Tier-1 Spread Widening
30 seconds before NFP or CPI reports, tier-1 interbank liquidity providers pull limit orders from order books to avoid adverse selection. Spreads on EUR/USD routinely widen from 0.1 pips to 6+ pips, while Gold spreads widen by $2 to $5, triggering stop-outs.
Asymmetric Slippage on Stop Losses
A stop-loss order is executed as a market order once the stop price is touched. During high-velocity news releases, the nearest available fill may be 15 pips worse than your requested stop, causing instant daily drawdown breach.
The B-Book Treasury Threat
Firms that simulate trades internally cannot hedge news scalpers in real time. If hundreds of traders gamble on a directional straddle, the firm incurs massive synthetic payout liabilities that threaten its solvency.
Frequently Asked Questions on Prop Firm News Trading
What does the 2-minute news trading restriction mean in prop firms?
Under the standard 2-minute rule (enforced by firms like FTMO on non-swing funded accounts), traders are strictly prohibited from opening new market orders, closing open positions, or having pending orders (buy stops, sell stops) trigger within 2 minutes before to 2 minutes after a high-impact red-folder economic event on the affected currency. Existing trades entered before the 2-minute window may be held, but cannot be closed during the window.
What happens if I accidentally trade during a restricted news window?
Penalties vary by firm. At FTMO and FundedNext, violations are treated as 'soft breaches'—meaning any profits generated from the news execution are deducted from your account, but the account is not terminated. However, on lower-tier offshore prop firms, news trading violations can result in immediate evaluation failure or account termination.
Which prop firms allow 100% unrestricted news trading?
Funding Pips, Topstep, The5ers (High Stakes and Bootcamp), and Alpha Capital Group allow 100% unrestricted news trading on both evaluation and funded phases. Traders can open orders, scalp breakouts, and hold positions through NFP, CPI, and FOMC releases without fear of profit cancellation.
Can I use pending straddle bracket orders during NFP?
Only on firms that permit unrestricted news trading. On firms with 2-minute or 5-minute news windows, if a pending buy stop or sell stop triggers during the blackout window, it is considered a direct rule violation even if the order was placed hours prior.
Why do B-book prop firms restrict news trading while Futures prop firms do not?
B-book prop firms internalize retail risk. During major news, retail market orders cause large one-sided profits that the firm must pay out of pocket, while retail brokers suffer severe slippage. In contrast, regulated Futures prop firms like Topstep route orders directly to the CME central limit order book (DMA) where live institutional market makers absorb liquidity.