Prop firm news trading rules are limits on opening, closing or profiting from trades in a short window around high impact economic releases such as US CPI, Non Farm Payrolls (NFP) and Fed decisions. Each firm sets its own window, its own list of events and its own consequence. Some firms terminate an account, some cut the profit that counts, and some apply no special rule. This guide shows you how to read the rule, plan around it, estimate planned risk on a gold trade and understand how slippage can exceed that risk.
What are prop firm news trading rules?
A prop firm lets you trade a simulated or funded account under its rules. One of those rules covers scheduled news. The firm sets a time window around a listed release and limits what you may do inside it. The three firms in this guide use 2 or 5 minutes before and after the release.
The limit can apply to opening a trade, closing a trade, executing a pending order, or having your stop loss or take profit filled. That last point catches traders. You can stay away from the news on purpose and still be affected because an old order executes inside the window.
There is no single industry standard. Always read the exact wording for your own program, account type and stage.
Why prop firms restrict news trading
During a big release, spreads widen, prices jump and a stop loss can fill far from where you placed it. This is called slippage. Firms rarely explain every reason in the rule text, so the next points are our interpretation, not a statement from any firm.
One reasonable reading is that a firm paying funded traders does not want results that depend on fills nobody could repeat. Another is that firms want to limit strategies built only for the spike, such as placing a buy stop and a sell stop on both sides of price before a release (a bracket or straddle). Independent guides report that The5ers prohibits bracket strategies around high impact news.
For you, the practical point is simple. Learn the exact rule for your account and set alerts before every major release.
The three types of news rule
| Type | What it means | Example from the firms below |
|---|---|---|
| Execution restriction | Certain order executions are not allowed inside the window. At some firms this includes stop loss and take profit fills | FTMO says a violation may result in account termination. The5ers calls its High Stakes breach a soft breach |
| Profit reduction | You may trade, but only part of the profit from affected trades counts. Losses count in full | FundedNext counts 40% of the profit on affected funded accounts |
| No special rule | You trade the release like any other candle | FTMO Swing accounts and some challenge phases. Slippage and drawdown rules still apply |
Rules often differ between the evaluation and the funded stage. A challenge phase may be open to news trading while the funded account is restricted. Check the stage you are on, not the one you passed.
How FTMO, FundedNext and The5ers compare
We read the text of each firm’s official news page through search extracts on 28 October 2026. We did not read each firm’s full terms and conditions, and we did not test any account. Firms change rules and wording, so use this table as a guide and open the current page for your own program before you trade. The official pages are the FTMO FAQ page titled “Can I trade news?”, the FundedNext help article “Is News Trading Allowed at FundedNext?” together with its CFD general rules page, and The5ers FAQ “Is News Trading Allowed in the High Stakes Program?”.
| Firm and program | Window | Where it applies | What the official page says |
|---|---|---|---|
| FTMO (global FAQ page) | 2 minutes before to 2 minutes after selected releases, on affected instruments only | Standard account type, once you trade an FTMO Account. Not during the Challenge or Verification. Swing accounts have no news restriction | Order execution is restricted, including stop loss, take profit and other pending orders. Positions opened more than 2 minutes before the event may be held. A violation may result in termination of the account |
| FundedNext CFD (Stellar 1-Step, Stellar 2-Step, Stellar Lite) | 5 minutes before to 5 minutes after a listed high impact event tied to the traded symbol | FundedNext Accounts on these models. The general rules page also lists Stellar Instant. Challenge phases are not subject to the split | Only 40% of the profit from affected trades counts, and losses count in full. The help page says this covers market execution, pending orders, take profit and stop loss triggers |
| The5ers High Stakes | 2 minutes before to 2 minutes after high impact news in the related currency or index | High Stakes program | Holding open trades is allowed. Executing orders in the window is not allowed. The page calls it a soft breach, says profits made at this time are deducted and losses stay with you |
What we confirmed and what we did not
- Confirmed on official pages (search extract text): the FTMO window, Standard versus Swing split and the statement that stop loss and take profit executions are included. The FundedNext 40% rule, its 5 minute window, the models named on its help page and the partial closure rule. The5ers High Stakes order restriction and its comment that existing trades can still hit a stop loss or take profit.
- Region matters: FTMO’s Australian page says Swing is offered to Australian clients and the news restriction applies to its professional 1:100 account. Another FTMO page says the US account type has no news restrictions. Your account type and country decide which page applies to you.
- Not confirmed on official pages: The5ers Hyper Growth and Bootcamp news rules (we only saw independent guides saying news trading is allowed but bracket strategies are not). The full list of restricted events for each firm. Whether gold is listed under a given USD event. How FundedNext’s 40% adjustment combines with your normal reward share percentage. How each firm treats placing, changing or cancelling a pending order, as opposed to its execution.
Third party summaries can disagree with the firm. We saw one summary saying The5ers has no news restrictions on any account, which does not match the official High Stakes FAQ. Treat outside guides as a starting point and the firm’s current page as the rule.
Placing an order and having it execute are different events. FTMO’s page speaks about order execution, and The5ers says its rule is about opening new positions, including entry pending orders. If you are unsure whether placing, editing or cancelling an order near news is allowed, ask the firm’s support in writing before the event.
Can you hold a trade through news on a prop firm account?
Often yes, if the trade was opened before the window starts. FTMO allows positions opened more than 2 minutes before a restricted event to stay open, and The5ers allows holding open trades over high impact news on High Stakes. FundedNext allows news trading but adjusts the profit that counts on affected funded accounts.
The risk is the exit. FTMO says the restriction covers stop loss and take profit executions, so a stop or target that fills inside the window may be a violation on a Standard account. The5ers says its rule covers new positions, but existing trades can still hit a stop or target during news. At FundedNext, a trade closed inside the window by a take profit is counted at 40% of its profit.
If your firm may count a stop or target fill inside the window as a breach, the clearer compliance choice is to close the trade before the window starts or stay flat.
Step by step: how to follow the rules every week
- Find your exact rule. Open the firm’s news page for your program, account type and stage. Write down the window in minutes and the stated consequence.
- Use the firm’s event list. Mark the restricted events for the week and check which instruments are affected. A USD release matters for USD pairs and may not touch EURGBP. For XAUUSD, check whether the firm’s table lists it.
- Convert to your platform time. Broker server time is often different from GMT. Set the window as an alert on your chart. The5ers says it follows server time.
- Decide before the event. Choose one plan: stay flat, or close the trade before the window starts. Do not decide in the last minute.
- Review loose orders. Delete pending entry orders that could execute inside the window. Do not remove or widen a protective stop just to avoid a news rule, because that raises your loss risk. If a stop or take profit could execute inside the window and that would breach your firm’s rule, close before the window or stay flat. Smaller size does not prevent an execution breach.
- Wait for structure after the release. Let the first spike finish. Trade only after the window ends and price shows a clear reaction at a level.
- Log it. Note whether the spread, slippage or a rule surprised you, and keep the page you relied on with its date.
Worked example: gold on a funded account
This is a hypothetical example. Spreads, commissions, swaps and slippage change real results.
Say you have a $100,000 funded account and you plan an XAUUSD buy before US CPI. You risk 0.5%, which is $500. Your stop loss is $8.00 away, or 80 pips on gold (1 pip is 0.10, so $8.00 is 80 pips).
Assuming this account’s XAUUSD contract size is 100 ounces per lot, a $8.00 move on 1 lot is $800. Lot size is $500 divided by $800, which is 0.625. You round down to 0.62 lots. Planned risk is 0.62 x $800 = $496. Check the symbol specification and the volume step in your own platform first, because contract size and lot step can differ between brokers. You can learn the method in our lot size guide.
What slippage does to the plan
Now the release hits and gold jumps through your stop. The fill comes $3.00 worse, so the price move against you is $11.00. On 62 ounces the loss is $11 x 62 = $682, which is 0.682% of the account and about 1.4 times your planned risk.
Now test it against a daily loss limit. Take a 5% limit on a $100,000 account, which is $5,000. If you had already lost $4,000 (4%) that day, the total would be $4,682, or 4.682%, still under the limit. If you had already lost $4,400 (4.4%), the total would be $5,082, or 5.082%, over the limit. Real daily loss rules may also count floating profit and loss, commissions and swaps, and each firm has its own calculation base and reset time, so read how your firm measures it.
What a profit cut does to the plan
Now take a hypothetical funded FundedNext Stellar 2-Step account. Your target is a $12.00 gain, which is 0.62 x $1,200 = $744 profit against $496 risk. Reward to risk is 1.5. If the trade is opened or closed inside the 5 minute window around a listed event, FundedNext’s help page says only 40% of the profit counts. That is $297.60. Losses still count at $496. The same page says closing part of an order inside the window affects the whole order.
This example does not model your reward share percentage, because we could not confirm from the pages we read how the adjusted profit and the share combine. Check FundedNext’s own worked example for that.
| Case | Counted profit | Loss | Reward to risk | Win rate needed to break even (before costs) |
|---|---|---|---|---|
| Outside the window | $744 | $496 | 1.5 | 40% |
| Inside the window | $297.60 | $496 | 0.6 | 62.5% |
The same setup now needs a much higher win rate to break even. Before a news trade, test whether your own edge survives the rule using your own numbers.
Common mistakes with news rules
- Forgetting stop loss and take profit. FTMO and FundedNext both state that these executions are covered by their rules.
- Using the wrong calendar. Each firm has its own list or reference calendar. A red folder on another site may not match.
- Ignoring server time. A window set in the wrong time zone is wrong by hours, not minutes.
- Trusting the evaluation rule on the funded account. Some firms apply a different rule after you pass.
- Using bracket orders. Independent guides report that The5ers prohibits bracket strategies around news.
- Sizing as if there is no slippage. If you risk 1% on a normal day, a bad fill into CPI can produce a larger loss than planned.
- Widening or removing a stop to dodge a rule. This can turn a small loss into a large one. Close early or stay flat instead.
- Reading old rule pages. Check the date and the program name on the page you rely on.
Before any release, check three things: the window for your account type, any pending order that could execute inside it, and the loss you would take if a stop fills badly. If one answer is unclear, stay flat.
How news rules fit with risk management
News permission is only one part of your rule set. You can follow the news rule and still lose the account through the daily loss limit, the maximum loss limit or a position size rule. Plan the news trade inside those limits first.
One illustrative precaution is to halve your normal risk on event days. If you usually risk 0.5%, you would use 0.25% or skip the trade. This is an example, not a validated safe threshold, and it does not remove slippage risk. Our guide on how to trade gold during FOMC shows how to build a calm plan around the biggest gold events.
For Elliott Wave and price action traders, our view is that the best news trade is often after the release. A spike can break several levels quickly and, in our experience of reading charts, it makes a wave count less reliable for a few minutes. Wait until price settles, then look for a clear structure and a stop loss at a level that proves your idea wrong. For an example of how we map levels before a central bank event, see our gold analysis for 27 October 2026.
Prop firm from Bangladesh: what to verify before you pay
Forex Wave Expert does not encourage anyone in Bangladesh to deposit or invest with forex brokers. Bangladesh’s foreign exchange framework, which includes the Foreign Exchange Regulation Act 1947 and Bangladesh Bank circulars, governs sending money abroad. We did not re check the current Bangladesh Bank notices for this article, so we cannot quote their exact wording. Anyone reading about forex trading in Bangladesh should read the bank’s own current notices.
Two questions are separate. The first is depositing money with a forex broker to trade, which we do not encourage. The second is paying a challenge fee to a foreign prop firm and receiving a payout, and we cannot confirm here how that is treated. Do not assume a prop firm arrangement, fee payment or payout method is legal just because a bank or card can process it.
Before you pay a challenge fee, do the following:
- Ask your bank whether it will process the fee payment, and how it treats an incoming payout, with the documents it needs.
- Get the firm’s payout method and conditions in writing, and keep every receipt.
- Ask a qualified adviser about legal and tax treatment. We cannot give legal or tax advice.
Be careful with IBs (introducing brokers). An IB can earn commission when you deposit or trade, so their interest is not the same as yours. Ask how they are paid before you follow their advice. You can read more in our Bengali article on forex trading legality in Bangladesh and prop firms.
Frequently Asked Questions
Is news trading allowed in prop firms?
It depends on the firm, the program and the stage. Some firms allow it freely, some restrict order execution inside a 2 or 5 minute window, and some count only part of the profit. Evaluation and funded stages can differ, so read the rule for your own account.
What is the 2 minute news rule?
It restricts certain actions from 2 minutes before to 2 minutes after a listed high impact release. FTMO applies it to order execution on Standard accounts once you trade an FTMO Account. The5ers applies it to executing orders on its High Stakes program.
Does my stop loss count if it triggers during news?
At FTMO, the official page says the restriction covers stop loss and take profit executions on Standard accounts. At FundedNext, stop loss and take profit triggers count under the 40% profit rule on affected funded accounts. The5ers says its High Stakes rule is about opening new positions, but existing trades can still hit their stop.
Does FundedNext cut profit during news on all accounts?
Not on all. FundedNext’s help page says the News Reward Share Rule applies to Stellar 1-Step, Stellar 2-Step and Stellar Lite FundedNext Accounts, and challenge accounts are not subject to it. Its general rules page also lists Stellar Instant. Other FundedNext products can have different rules.
Can I trade XAUUSD during news on a funded account?
Only if your firm and account type allow it. Check the firm’s list of affected instruments to see whether gold is covered by a USD event. If trading is allowed, expect wider spreads, estimate planned risk and understand that slippage can exceed it.
Are there prop firm accounts with no news restrictions?
Some account types have no news restriction, such as the FTMO Swing account, and some challenge phases are not restricted. Forbidden trading practices and loss limits still apply, and FTMO itself recommends avoiding major announcements. Availability depends on your country and account type.
For daily gold levels and event reminders, follow our Telegram channel, where we share updates through the week.
Trading forex, gold and CFDs involves a high risk of loss and is not suitable for everyone. Examples in this article are hypothetical and are not signals, legal advice or financial advice. Prop firm rules change, so confirm the current rules with your firm before you trade.
Editorial Note: This article is prepared by the ForexWaveExpert (FWE) team. Every post is reviewed, fact-checked and corrected by Rana Das, Founder & CEO of ForexWaveExpert, a gold trader with 15+ years of experience in Elliott Wave and Price Action and winner of the Fastbull Best Mentor Award 2024. This content is for educational purposes only and is not financial advice.
