News Trading Rules on Prop Firms
Trading Rules & RestrictionsSource review:
According to Vigil's prop trading glossary, News Trading Rules on Prop Firms is firm-specific restrictions on trading around major economic announcements including NFP, FOMC, and CPI releases. Rules range from outright prohibitions on holding open positions during the event window to post-event restrictions on new entries. In prop trading, understanding news trading rules on prop firms is critical because it directly affects your drawdown limits, position sizing, and whether you pass or fail an evaluation.
This term is part of the full prop firm glossary.
View in full glossaryNews trading restrictions vary dramatically across prop firms and are one of the most commonly misunderstood rules. The strictest firms (Apex) prohibit any open positions during a defined window around tier-1 economic events -- NFP, FOMC rate decisions, and CPI releases. If a position is open when the restriction window begins, the firm may auto-close it or flag the account for violation review.
FTMO applies news restrictions only on funded accounts, not during evaluation phases. The funded account restriction prevents opening or closing positions within 2 minutes before and 2 minutes after high-impact news events. Importantly, holding a position through the news window is permitted -- you simply cannot initiate or exit positions during the restricted period. This allows traders to hold swing positions through news events as long as no new orders are placed.
The5%ers and FundedNext have no news trading restrictions, making them attractive for news traders and economic release scalpers. For traders who specifically want to trade NFP or FOMC reactions, these two firms are among the few viable options. However, the lack of restrictions is a double-edged sword -- the volatility that news events produce can also trigger large losses that consume drawdown room. A single NFP trade gone wrong can breach a daily loss limit on any firm, restricted or not.
NFP release calendar: first Friday of each month at 8:30 AM EST. Firm comparison: Apex -- no positions open from 8:25-8:35 AM on NFP day (auto-violation if held through). FTMO funded -- no new orders 8:28-8:32 AM, existing positions can be held. The5%ers -- no restrictions. A trader holds 2 standard lots EUR/USD into NFP. EUR/USD moves 80 pips in 5 minutes. At FTMO (existing position held): $1,600 profit or loss depending on direction. At Apex (position must be flat by 8:25): that same $1,600 opportunity is entirely missed. Annualized, missing 12 NFP reactions per year at $1,000 average = $12,000 in foregone expected value for a news trader choosing Apex over FTMO.
News Trading Rules on Prop Firms rules vary between firms. What is allowed at one firm can be a violation at another. Always verify before your first trade on a new account.
Practical example across firms: FTMO: 2-step, static drawdown, 5% daily loss, from €155. TopStep: 1-step, trailing drawdown, 2% daily loss, from $49.
Common mistake: The most common mistake with news trading rules on prop firms: carrying habits from one firm to another without rechecking. News Trading Rules on Prop Firms rules can differ between firms and even between evaluation phases at the same firm.
Reviewed | Rules verified against official firm websites