Prop Firm News Trading Rules 2026: Which Firms Allow It?

Which prop firms allow news trading in 2026?

Several major proprietary trading firms allow news trading, but the rules vary by program and funding stage. As of October 2026, The5ers allows news trading in certain programs but prohibits bracketing; its High Stakes program restricts new order execution within two minutes before and after relevant high-impact releases. FundedNext applies a 40% news reward calculation to qualifying trades on funded accounts. FundingPips uses profit deductions on several funded models and prohibits news trading within a wider window on Zero. Funded Trader Markets allows news trading but prohibits news scalping, while FTMO restricts order execution around selected releases on eligible Standard and Instant accounts.

The key takeaway: Check the precise account rules before choosing a firm. Permission to trade news does not necessarily mean every order is allowed, every news profit qualifies for a reward, or every account model has the same restrictions.

Why news trading rules can make or break a prop firm strategy

Prop firm news trading rules are a common source of confusion for traders choosing an evaluation or funded account. One firm may permit a trader to open positions during a Nonfarm Payrolls release, another may deduct some profits earned around the same announcement, and another may prohibit a particular order strategy entirely.

The difference matters because a profitable market prediction does not automatically translate into an eligible prop firm reward. An order can trigger inside a restricted window, a stop loss can execute at an unexpected price, or a strategy can violate a firm's prohibited-practices policy.

This guide explains which prop firms allow news trading in 2026, how their restrictions work, what happens when a rule is breached, and which account structure may suit different trading styles.

What counts as news trading, and how do prop firm news rules work?

News trading means opening, closing, or managing a position around an economic announcement or other scheduled event that may significantly affect market prices. Prop firms generally manage this activity through execution windows, profit adjustments, or restrictions on specific strategies. The exact definition depends on the account agreement and the firm's published rules.

Which events trigger a prop firm news restriction?

High-impact economic releases are the most common triggers. Examples include:

• ●US Nonfarm Payrolls (NFP).
• ●Consumer Price Index (CPI) and inflation reports.
• ●Federal Reserve interest-rate decisions and FOMC statements.
• ●Central bank announcements affecting other major currencies.
• ●Other releases explicitly designated as restricted by the firm.
• ●Certain high-impact speeches, where the rules specifically include them.

Not every firm restricts the same events. Some refer to an external economic calendar, while others require traders to use their own dashboard calendar.

For example, FundingPips identifies its dashboard economic calendar as the official source for restricted events. A trader who relies on a third-party calendar without checking the firm's designation may misunderstand which releases trigger the rule. See the FundingPips official news-trading policy.

The safest approach is to check the firm's designated calendar before each relevant session. Do not assume that every red-folder event on an external calendar is covered, or that an event missing from that calendar is automatically unrestricted.

Related Read On Which Firms Allow News Trading and Which Ones Forbid It: https://propfirmsinsider.com/guides/prop-firm-news-trading-rules-in-2026-which-firms-allow-it

What is the difference between a blackout window, profit deduction, and strategy ban?

These restrictions are different, and confusing them can lead to costly mistakes. A blackout window limits order execution during a defined period. A profit deduction changes how qualifying profits are counted. A strategy ban prohibits a trading method regardless of whether a particular trade falls inside a time window.

Table 1. Types of prop firm news trading restrictions, as of 2026.

These categories can overlap. A firm may permit a position to remain open through an announcement but adjust its profit if it is closed during a restricted period. Another firm may prohibit opening new trades but permit an existing position to remain open.

FTMO's published rules illustrate the distinction. For eligible Standard and Instant accounts, order execution on affected instruments is restricted within two minutes before and after selected news releases. This includes stop-loss, take-profit, and pending-order execution. Holding an existing position opened more than two minutes before the event is allowed under the stated conditions. Challenge and Verification accounts and Swing accounts have specified exceptions. Read the official FTMO news-trading FAQ.

The important question is not simply whether news trading is allowed. It is what the firm's rule considers a violation.

Why do pending orders and stop-loss triggers matter?

A pending order can trigger automatically during a restricted period even if the trader placed it well before the announcement. A stop loss or take profit can also execute when the market moves rapidly, so the trader may not control the precise execution time.

This is particularly important for traders who leave orders around NFP, CPI, or central bank decisions. The rule may focus on when the order executes rather than when it was submitted.

Before using pending orders, check whether the policy covers:

• ●Market orders and limit orders.
• ●Buy-stop and sell-stop orders.
• ●Stop-loss and take-profit triggers.
• ●Partial closures and full closures.
• ●Existing positions held through the announcement.

A rule that applies to execution can be broader than a rule that simply prohibits opening a new trade.

Rule-change alerts: If your strategy depends on economic announcements, consider subscribing to firm-rule updates or checking the official rules before each major event. A change to the designated calendar, restricted window, or profit calculation can affect how an established strategy operates.

Which prop firms allow news trading in 2026?

News trading is permitted in some form at all five firms covered here, but the conditions are not equivalent. The5ers has different requirements for High Stakes and its other programs; FundedNext applies a news reward calculation to funded accounts; FundingPips distinguishes its standard models from Zero; FTM permits news trading while prohibiting news scalping; and FTMO has specific restrictions and account exceptions.

The table below summarizes the central differences. It is a guide to the official rules, not a substitute for the terms attached to a specific purchase.

Table 2. Prop firm news trading rules by account stage, as of 2026. Always check the exact program's official terms.

Explore More on Funding Pips' News Trading Rules: https://propfirmsinsider.com/guides/funding-pips-news-trading-rules-explained-the-5-minute-blackout-window-in-2026

Where do news restrictions usually begin: evaluation or funding?

The transition from evaluation to funding is often the most important point to check. A trader may be allowed to trade freely around news while completing a challenge but face profit adjustments or execution restrictions after receiving a funded account.

FundedNext's official guidance, for example, permits news trading in the Challenge Phase and applies its News Reward Share Rule on funded accounts. FundingPips' standard models similarly distinguish the Evaluation Stage from the Master Account.

FTMO is a useful exception to the general pattern because its published rules exempt Challenge and Verification accounts from the specific restriction that applies to eligible Standard and Instant accounts.

The lesson is straightforward: never assume that the rules you used to pass an evaluation remain unchanged when the account moves to the next stage.

Do instant funding accounts allow news trading?

Some instant or direct-funded accounts permit news trading with a profit adjustment; others prohibit it during specific windows. The absence of an evaluation phase does not mean there are fewer trading restrictions.

FundedNext's Stellar Instant documentation, for example, states that its News Profit Split Rule applies to qualifying trades within five minutes before and after a high-impact event. FundingPips Zero prohibits opening, closing, or holding positions inside its restricted news window.

Before buying an instant account, read the funded-account rules directly. The name of the product or the promise of immediate access does not establish whether a particular news strategy is allowed.

Read How Prop Firm Evaluations Actually Work ft. The 5ers: https://the5ers.com/what-is-a-prop-firm-evaluation-challenges-phases-and-rules-explained/

Thinking About Comparing The5ers and FTMO? We got you. Take a look at our in-depth comparison guide: https://propfirmsinsider.com/guides/the5ers-vs-ftmo-complete-rules-payouts-and-scaling-comparison-for-funded-traders-in-2026

Does The5ers allow news trading? Program-by-program rules

The5ers permits news trading in several programs but imposes specific restrictions that traders must understand before executing around major releases. Its official documentation distinguishes between prohibited bracketing strategies and the High Stakes execution window. This makes program selection important for traders whose strategies depend on immediate news execution.

What are The5ers' official news trading rules?

The5ers' official FAQ, updated in August 2026, says news trading is allowed in Hyper Growth and Bootcamp except for bracketing strategies around news. Its High Stakes guidance states that new order execution within two minutes before and after relevant high-impact releases is prohibited. The firm also states that holding an existing trade through news is allowed under the relevant program rules.

Sources:

• ●The5ers: Can I Trade During News?
• ●The5ers: Is News Trading Allowed in the High Stakes Program?
• ●The5ers: Prohibited Trading Practices

These official pages matter because some third-party summaries describe The5ers as having a single universal news policy. That is not a safe interpretation of the firm's published program-specific rules.

How do The5ers' programs differ?

Table 3. The5ers news trading conditions by program, as of October 2026. The official FAQ sources above should be consulted for the current terms.

The distinction between the Hyper Growth and Bootcamp guidance and High Stakes is particularly important. A trader who uses scheduled news releases to enter fresh positions should not treat a general statement that The5ers allows news trading as permission to execute every order type during every event.

For High Stakes, The5ers states that orders executed within the restricted period can result in profits being deducted rather than counted toward the target. The firm also states that losses remain the trader's responsibility. The timing of execution, including the triggering of a pending order, is therefore critical.

10 tricks you might need to know before news trading with The 5ers in 2026: https://propfirmsinsider.com/guides/the5ers-news-trading-mistakes-that-can-cost-you-an-account-10-rules-traders-need-to-know-in-2026

What is a bracketing strategy, and why does The5ers prohibit it?

Bracketing is a strategy in which a trader places pending buy-stop and sell-stop orders on opposite sides of the current market price before a major announcement. The intention is to catch whichever direction the market moves when the news is released.

For example, suppose EUR/USD is trading near 1.1000 before a major US inflation report. A trader places a buy-stop above the market and a sell-stop below it. If the release causes a sharp move, one order may trigger. If the market whipsaws, the other order may trigger too, creating additional exposure.

The5ers explicitly lists bracketing around high-impact news as a prohibited practice. This is different from simply holding a trade through an announcement or taking a discretionary position based on a trading setup.

A trader who uses breakout strategies should therefore distinguish between:

• ●News bracketing: placing opposing pending stop orders around the release before it occurs.
• ●Discretionary news trading: taking a position based on a defined market thesis.
• ●Post-news trading: waiting for the release and initial volatility to pass before evaluating a setup.

These are not automatically treated the same by every firm. The5ers' prohibition on bracketing does not mean every news-related trade is prohibited, but it does mean traders should not use the firm's general news-trading permission to justify a banned order strategy.

What happens if a High Stakes order triggers during the restricted window?

The5ers' published High Stakes rules state that profits from orders executed inside the restricted period are deducted and do not contribute to the target, while losses remain the trader's responsibility. A trader should not rely on the time a pending order was placed to determine compliance.

Consider a hypothetical CPI release scheduled for 15:30 server time. Under the stated two-minute restriction, the relevant window is 15:28 to 15:32. If a pending entry triggers during that period, the fact that it was placed at 15:00 does not make the execution compliant.

Existing positions also require attention. The firm's High Stakes guidance focuses the execution restriction on opening new positions; it does not mean an existing trade is immune from slippage, stop-loss execution, or the normal drawdown rules.

The5ers' High Stakes FAQ also describes daily and maximum loss limits. A trade that suffers a sharp adverse move during news can breach those limits even if the news execution rule itself has not been violated. Read the official High Stakes drawdown explanation.

What should The5ers traders do before a news release?

Use this checklist before trading around a scheduled event:

1. ●Confirm the program: Hyper Growth, Bootcamp, High Stakes, Pro Growth, or Futures.
2. ●Check the firm's official list of relevant high-impact events and the applicable server time.
3. ●Identify whether the rule restricts opening a position, closing a position, or both.
4. ●Remove any strategy that violates the program's prohibited-practices policy, including news bracketing.
5. ●Review daily and maximum drawdown limits before deciding on position size.
6. ●Save the current rule page or account terms so you can confirm which policy applied when you traded.

The5ers' detailed program rules make it possible for traders to assess whether a strategy fits the account before committing to a purchase. The most useful comparison is not whether a firm is broadly described as news-friendly, but whether its precise execution and strategy rules are compatible with the trader's method.

Is The 5ers even legit? Find the answer here: https://propfirmsinsider.com/guides/is-the5ers-legit-trustpilot-ratings-payout-reliability-trader-experiences-2026

Related Read: https://propfirmsinsider.com/guides/the5ers-scale-up-plan-explained-how-traders-reach-100-profit-split

How do FundedNext, FundingPips, and Funded Trader Markets handle news trading?

FundedNext, FundingPips, and Funded Trader Markets illustrate three different approaches to news-related risk. FundedNext adjusts qualifying profits on funded accounts, FundingPips applies model-specific windows and profit deductions, and Funded Trader Markets allows news trading while prohibiting news scalping and other exploitative techniques.

FundedNext: What does the 40% news reward rule mean?

FundedNext's official Help Center article, dated 8 September 2026, states that news trading is allowed during both the Challenge Phase and the FundedNext Account stage. On funded accounts, the News Reward Share Rule applies to qualifying trades executed within five minutes before or five minutes after a listed high-impact news event.

The firm's documentation states that 40% of the profit from qualifying trades is counted toward the trader's account balance. Losses during the period remain the trader's responsibility. The rule covers market execution, pending orders, and qualifying stop-loss or take-profit triggers.

Source: FundedNext official news-trading policy.

A worked example of the FundedNext calculation

Suppose a trader has a funded account with the following hypothetical results:

• ●Profit from trades outside the restricted news window: $800.
• ●Profit from qualifying news trades: $200.
• ●Total gross profit: $1,000.

If the 40% rule applies to the $200 in news-related profit, then $80 of that amount is counted under the stated calculation. The total counted profit would therefore be $880, assuming no other adjustments apply.

This example illustrates the calculation described by FundedNext; it is not a promise of payout eligibility. Other account rules, losses, reward conditions, or plan-specific terms may affect the final amount.

A trader should also check whether a particular account model has additional rules. FundedNext publishes separate documentation for products such as Stellar Instant, and the applicable agreement should be reviewed before trading.

FundingPips: Why do the five-minute and ten-minute rules matter?

FundingPips uses different news rules for its standard evaluation models and FundingPips Zero. Its current official documentation distinguishes between ordinary high-impact news, high-impact speeches, and the separate restrictions attached to the Zero model.

For the standard models covered in the firm's news-trading guidance, the Evaluation Stage has no restriction on holding trades during news events. On the Master Account, profits from qualifying trades opened less than five hours before a restricted event and closed during the specified window may be deducted. Trades opened five hours or more before the event receive different treatment under the firm's stated exception.

For standard models, the current documentation specifies a five-minute window around high-impact news and a separate window for speeches. The exact speech window depends on the applicable model documentation, so traders should not assume the same timing applies across every FundingPips product.

FundingPips Zero has a stricter rule: opening, closing, or holding a position within ten minutes before or after a relevant high-impact release is prohibited. Speeches have a separate window extending from ten minutes before the speech begins to ten minutes after it concludes. Violations can result in account closure.

Official sources:

• ●FundingPips news-trading and weekend-holding policy
• ●FundingPips Zero rules

Why the FundingPips dashboard calendar matters

FundingPips identifies its own dashboard calendar as the official source for restricted events. This matters because a third-party calendar may use different event classifications or may not reflect the firm's current list of restricted speeches.

The policy also distinguishes profit deductions from account termination. On standard models, qualifying news-related profits may be deducted under the stated conditions; on Zero, trading inside the prohibited window is a hard breach.

Traders should not rely on older reviews without checking the official policy applicable to their account. FundingPips publishes legacy rules for some earlier purchases, and the rules for new purchases or resets can differ from those of existing accounts.

Funded Trader Markets: Is news trading allowed?

Funded Trader Markets states in its official General Trading Rules FAQ that news trading is allowed across its programs. Its FAQ warns that news events can create volatility, reduced liquidity, wider spreads, and slippage. The firm separately prohibits news scalping, including rapidly opening and closing multiple positions within seconds around high-impact announcements to exploit market feeds.

Source: Funded Trader Markets official General Trading Rules FAQ.

The distinction is important. Permission to trade during a release is not permission to use every strategy associated with news volatility. A trader may have more flexibility to enter a discretionary setup around an announcement, but a rapid-fire method designed to exploit execution characteristics can still violate the rules.

FTM also has separate account conditions, including consistency rules and restrictions on certain trading practices. These may affect reward eligibility even when the news trade itself is permitted. Review the relevant account-specific FAQ rather than assuming that permission to trade news settles every other compliance question.

How does FTMO compare?

FTMO's official news-trading FAQ states that eligible Standard and Instant accounts are subject to a restriction on order execution within two minutes before and after selected news releases. The restriction applies to affected instruments and includes stop-loss, take-profit, and pending-order execution.

The firm states that the restriction does not apply to Swing accounts or accounts in the Challenge and Verification phases. Existing positions opened more than two minutes before the targeted event can be held, subject to the firm's rules.

Source: FTMO: Can I trade news?

This makes FTMO a useful benchmark for traders comparing execution windows. A two-minute window is shorter than FundedNext's five-minute window for its funded news calculation, but the practical effect is different: FTMO's rule restricts execution on eligible accounts, whereas FundedNext's published rule adjusts qualifying profits.

The comparison must therefore account for the type of restriction, not simply rank firms by the number of minutes.

What happens if you break a prop firm news trading rule?

The consequences depend on the firm's terms and the specific violation. Some firms deduct profits associated with restricted trades; others may classify an execution as a rule breach that can lead to account termination. A trader should establish the penalty before placing an order, rather than discovering the rule after a profitable trade.

What is the difference between a profit deduction and an account breach?

A profit deduction changes the amount counted toward the account's target or reward calculation. It does not necessarily mean that the entire account is terminated. A hard breach, by contrast, can result in account closure or the loss of access to the account.

For example, The5ers' High Stakes news guidance states that qualifying profits made within the restricted window are deducted and do not count toward the target, while losses remain the trader's responsibility. FundingPips Zero identifies news trading within its restricted window as a hard breach that can result in account closure.

The same action can have different consequences under different account models. Never assume that a rule described as a soft breach by one firm will be treated the same way by another.

Related Read: https://propfirmsinsider.com/guides/news-trading-restrictions-across-prop-firms-2026-who-actually-lets-you-trade-nfp-and-fomc

Can a stop loss or take profit cause a news-rule violation?

It can, depending on the rule. FTMO explicitly includes stop-loss, take-profit, and pending-order execution in its eligible-account restriction. FundedNext's news reward rule also covers qualifying execution involving stop-loss and take-profit triggers.

That means a trader who opens a position well before a release may still need to consider what happens if the position closes during the restricted period.

Before trading, determine whether the policy applies to:

• ●Opening a new position.
• ●Closing an existing position.
• ●Automatic stop-loss or take-profit execution.
• ●Pending orders that trigger inside the window.
• ●Partial closures.
• ●Positions held during a speech or an extended event.

The wording of the rule matters more than a general description such as "news trading allowed."

Why are news trades risky even when they are permitted?

News trading can expose a position to unusually fast price changes, wider spreads, slippage, gaps, and reduced liquidity. An order may execute at a price materially different from the expected level, and a stop loss may not guarantee the intended exit price under volatile conditions.

These execution risks can affect the account's daily loss and maximum drawdown limits. A trader can follow the news policy correctly and still lose the account through poor risk control.

A practical approach is to:

• ●Define the maximum acceptable loss before the event.
• ●Reduce exposure if volatility could make the stop distance unreliable.
• ●Avoid assuming that a pending order will execute at its displayed price.
• ●Check correlated positions so a single announcement does not create excessive combined risk.
• ●Confirm the account's drawdown calculation and whether floating losses count toward the limit.

Prop firm trading involves risk, and simulated account rules do not remove market risk. No strategy guarantees a successful evaluation, reward, or income.

Which prop firm is best for your news trading style?

There is no universally best prop firm for news trading. The right choice depends on whether a trader uses pre-release bracketing, holds existing positions through announcements, enters after a release, or trades rapid short-term movements. The firm must permit the strategy under the exact account terms, and the trader must be comfortable with its execution and reward rules.

Which rules suit a straddle or bracket strategy?

A straddle strategy typically places opposing pending orders before a scheduled announcement in an attempt to capture the initial move. This method is incompatible with The5ers' explicit prohibition on news bracketing. It may also conflict with other firms' rules or with restrictions on rapid news scalping.

Traders who depend on this approach should not purchase an account based solely on a broad statement that news trading is permitted. Read the prohibited-strategy definitions and determine whether the firm's policy covers the precise order structure being used.

Which rules suit traders who hold positions through news?

A trader who opens a position well before a release may care more about whether existing trades can remain open and whether closing during the event affects profit eligibility.

The5ers states that holding open trades over news is allowed, while its High Stakes program restricts new order execution within the specified window. FundingPips standard models also distinguish between trades opened well in advance and trades opened closer to the event. FTMO's rules permit certain existing positions to remain open on eligible accounts, while other accounts are exempt from the restriction altogether.

For this style, examine the rules governing both entry and exit. A position can be compliant when opened but still face a profit adjustment if it is closed during a restricted window.

Which rules suit traders who enter after the news?

Post-news traders wait for the initial volatility to settle and then look for a continuation, reversal, breakout, or retest. This approach can reduce dependence on the first price spike, although it does not eliminate volatility or execution risk.

A short restriction window may be less disruptive to a trader who does not need to enter immediately. However, the trader must still check whether the firm's definition of a restricted event includes the exact release, instrument, and timing of the planned entry.

For a strategy that requires immediate execution after the release, a five- or ten-minute restriction may be materially different from a two-minute restriction.

How should you compare account rules before buying?

Use the following process:

1. ●Choose the account model. Identify the exact program and whether it is an evaluation, funded, or instant account.
2. ●Check the news calendar. Confirm which releases and speeches are designated as restricted.
3. ●Read the execution rule. Identify whether opening, closing, holding, and automatic order triggers are covered.
4. ●Read the strategy restrictions. Check for bans on bracketing, news scalping, arbitrage, or other prohibited methods.
5. ●Understand the financial consequence. Determine whether profits are deducted, adjusted, or excluded, and whether the violation can terminate the account.
6. ●Review risk limits. Understand the daily loss and maximum drawdown rules, including how floating losses are measured.
7. ●Save the current terms. Keep a dated copy of the official rule page or account agreement for reference.

This process is more reliable than choosing a firm based on a single feature such as a short news window or a statement that news trading is allowed.

Find a detailed guide on which prop firms allow news trading: https://propfirmsinsider.com/guides/prop-firms-that-allow-news-trading-in-2026-the5ers-ftmo-fundednext-fundingpips-ftm-rules-compared

Prop Firm Consistency Rules Explained: https://propfirmsinsider.com/guides/prop-firm-consistency-rules-explained-2026-the5ers-vs-ftmo-vs-fundednext-vs-funding-pips

Is Consistency Rule Still Prop Trading's Biggest Edge in 2026? Let's discuss: https://propfirmsinsider.com/guides/the5ers-vs-everyone-is-no-consistency-rule-still-prop-trading-s-biggest-edge-in-2026

Summary: Key takeaways

• ●News trading permission is account-specific. A firm may allow news trading but restrict execution or reward eligibility on particular programs.
• ●The5ers has program-specific rules. Hyper Growth and Bootcamp permit news trading subject to the bracketing prohibition; High Stakes restricts new order execution within two minutes of relevant high-impact releases.
• ●FundedNext adjusts qualifying news profits. Its funded-account policy counts 40% of profit from qualifying trades in the five-minute pre- and post-news window.
• ●FundingPips distinguishes standard models from Zero. Standard models use profit deductions under defined conditions, while Zero prohibits trading within its restricted news window.
• ●Funded Trader Markets permits news trading but prohibits news scalping. General trading rules and consistency requirements still matter.
• ●FTMO applies a two-minute restriction to eligible Standard and Instant accounts. Its published exceptions include Swing, Challenge, and Verification accounts.
• ●Risk management remains essential. Spreads, slippage, stop-loss execution, and drawdown limits can affect results even when a trade follows the news policy.

Summary: Check the rules before choosing your account

Before paying for a challenge or instant-funded account, compare the current rules with the strategy you actually intend to use. Start with the firm's official terms, then review the account's drawdown limits, reward conditions, and prohibited strategies.

Read more on the 5ers' official programs and what might be the best fit for you as a trader in 2026? https://propfirmsinsider.com/guides/the5ers-bootcamp-vs-hyper-growth-vs-pro-growth-vs-high-stakes-which-program-fits-your-trading-style-in-2026

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