News trading is one of the most searched prop firm topics — and for good reason. High-impact news (NFP, CPI, FOMC) creates massive moves that can either make your challenge or blow your account. The problem? Every firm handles news differently.
Let me break down exactly which firms allow news trading, the restricted windows, and how to trade safely around events.
What Counts as "News Trading"?
Most firms define news trading as holding or opening positions within a specific time window around high-impact economic events.
Typical High-Impact Events:
- NFP (Non-Farm Payrolls): First Friday monthly, 8:30 AM EST
- CPI (Inflation Data): Monthly, 8:30 AM EST
- FOMC/Interest Rate Decisions: 8x per year, 2:00 PM EST
- Central Bank Speeches: Fed Chair, ECB, BoE, BoJ governors
- GDP, Retail Sales, PMI: Various schedules
News Trading Policy by Firm (2026)
✅ FULLY ALLOWED (No Restrictions)
- FTMO: News trading allowed — no restrictions on holding or opening during news
- FundedNext: News trading allowed on all account types
- E8 Markets: News trading allowed
- The Funded Trader: News trading allowed
- My Funded Futures: News trading allowed
- Trading Bench: News trading allowed
⚠️ RESTRICTED (Holding Allowed, New Positions Blocked)
- Funding Pips: Cannot OPEN new trades 5 min before → 5 min after high-impact news. Existing positions OK.
- Blueberry Funded: 10-minute restriction window around major news
- Lux Trading Firm: 15-minute window restriction on new positions
❌ PROHIBITED (Strict No-News Policy)
- Topstep: No holding positions through major news (futures focus)
- Apex Trader Funding: Must close 5 min before → 5 min after major news
- Earn2Trade: Strict news trading prohibition
- Bulenox: No news trading on evaluation accounts
How Firms Detect News Trading
- Trade timestamps: Opening/closing within restricted windows
- Position holding: Carrying positions through news when prohibited
- Lot size spikes: Sudden position increases before known events
- Automated monitoring: Most firms use software that flags news-window trades automatically
Strategies for News Trading (Where Allowed)
1. The Straddle Approach
Place buy stop and sell stop orders above/below current price before news. One triggers, the other cancels. Captures the directional move.
2. The Fade Strategy
Wait for the initial spike (often fake), then trade the reversal. Requires fast execution and tight stops.
3. The Wait-And-See
Stay flat during news, enter after volatility settles (15-30 min post-event). Safest for challenge accounts.
Risk Management During News
- Reduce position size by 50-75% for any trades near news
- Use wider stops — spreads widen 3-10x during major events
- Expect slippage — your stop may fill 10-50 pips worse
- Don't over-leverage — a single news spike can hit daily drawdown limit
How to Check If a Specific Event Is Restricted
- Check the firm's economic calendar (most provide one)
- Look for "High Impact" / "Red Folder" events
- Read the specific restricted window (usually 2-15 minutes before/after)
- When in doubt: FLATTEN ALL POSITIONS 15 minutes before major news
Pro Tips from 500+ Challenges
- Bookmark each firm's news policy page
- Use a news calendar with alerts (ForexFactory, Investing.com, Myfxbook)
- Set phone alarms for 30 min before major events
- If a firm prohibits news trading, treat it as a "no trade day" for major events
What Happens If You Violate News Rules?
- Soft breach: Profit adjustment, trade cancelled, warning
- Hard breach: Challenge failed, fee forfeited (Topstep, Apex, strict firms)
- Profit clawback: News trade profits removed, losses kept
Bottom Line
If news trading is your edge, choose firms that allow it (FTMO, FundedNext, E8). If you prefer avoiding news volatility, the prohibited firms actually simplify your life — just stay flat. Either way: know the rule before you trade.
📰 Don't Want to Track News Calendars?
I know every firm's news policy and trade around events automatically. You get funded without watching economic calendars.
📲 Message @Voraspas for Challenge Help