Best Prop Firms for News Trading in 2026 — Which Allow NFP/FOMC?
News trading—taking positions around major economic announcements—is one of the most profitable strategies in forex. NFP (Non-Farm Payroll), FOMC (Federal Open Market Committee), ECB decisions, and CPI prints create massive volatility and opportunity.
But here's the problem: most prop firms ban news trading outright. Why? Because it's high-risk and high-reward, and firms don't want traders blowing accounts on a single NFP release. However, some prop firms allow it with restrictions. This guide tells you which ones, and how to trade news events without violating rules.
Why Prop Firms Restrict News Trading
News trading creates extreme volatility. An unexpected NFP number can move EURUSD 200 pips in seconds. If a trader has a $50k account with 5% daily loss limit ($2,500), one bad news trade can wipe out a week's profit instantly.
From the prop firm's perspective, news trading looks reckless. They'd rather have traders execute consistent, lower-volatility strategies that compound capital predictably.
But some traders make a living on news events. So the smarter prop firms created compromises: allow news trading with higher margin requirements, stricter stop-losses, or limited position sizing.
Which Prop Firms Allow News Trading?
| Prop Firm | NFP Trading | FOMC Trading | Other Major Events | Requirements |
|---|---|---|---|---|
| The5ers | Allowed | Allowed | Allowed | Max position size before events |
| Instant Prop | Allowed | Allowed | Allowed | Strict stop-losses required |
| Funded Next | Allowed | Allowed | Allowed | No restrictions |
| FTMO | Restricted | Restricted | Restricted | Position closed before event |
| True Forex Funds | Restricted | Restricted | Restricted | Position closed before event |
| Urban Forex (Prop) | Allowed | Allowed | Allowed | Position size limits |
Important: Prop firm rules change quarterly. Always check the specific terms of your firm before trading major economic events. The rules above represent the general stance as of March 2026, but individual firms update policies frequently.
Understanding "Restricted" News Trading
When a prop firm says news trading is "restricted," they typically mean one of the following:
Position Closure Rule
Your position must be closed at least 5 minutes before the economic event releases. You can't hold through the announcement. This kills news trading as a strategy because the move happens instantly.
Maximum Position Size
You can hold through the news, but your position size is capped at a percentage of your account. For example: "Maximum 1% of account on hold during major events." This limits your exposure but allows participation.
Stop-Loss Requirement
You can trade news, but you must have a hard stop-loss in place before the event. No moving your stop or going without one. The stop must be set at least 30 pips away (varies by firm).
Time Window Restriction
You can only trade for 5-10 minutes after the news release. Longer-term positioning isn't allowed. This prevents swing trades based on news reactions.
Defining "News Trading"
Here's where it gets tricky: what exactly counts as news trading?
Clear News Trading (Banned by Most)
- Opening a position 5 minutes before NFP and holding through the release
- Scalping EURUSD for 100 pips during FOMC announcement
- Entering after the news drops but before the market stabilizes (obvious reaction play)
Gray Area (Rules Vary)
- Having an existing position open during news (you didn't enter for the news, but didn't close it either)
- Trading 30 minutes after the news when the move has already happened
- Waiting until 2 hours post-news to trade the secondary reaction
Generally Allowed (Even at Restrictive Firms)
- Technical trading that happens to occur near a news event (you were already in the setup)
- Trading pairs not directly affected by the event (e.g., NZDJPY during US NFP)
- Trading after significant time has passed (same day, but hours later)
The distinction: if you specifically opened a position because of an upcoming news event, that's news trading. If you were already in a position and the news happened, that's just holding through volatility.
How to Trade News Without Violating Rules
Strategy 1: Trade Before the Reaction Settles
Enter at least 4-6 hours after the news release, once the market has digested the announcement and established a new level. This avoids the raw reaction but captures the trend.
Strategy 2: Trade Pairs With Delayed Reactions
When US NFP releases, EURUSD reacts immediately. But NZDJPY, CADJPY, and crosses may react 30 minutes later as traders reassess carry trades. Trade those pairs after the initial reaction.
Strategy 3: Use Economic Calendar Filter
Know the economic calendar. Don't open new positions 15 minutes before a major release. Close positions 5 minutes before if your firm requires it. This is legal everywhere.
Strategy 4: Trade Non-Correlated Assets
If your prop firm restricts forex news trading, trade commodities or indices that react differently. Gold often moves opposite to USD-centric events.
Major Economic Events to Watch (2026)
| Event | Schedule | Impact | Typical Move |
|---|---|---|---|
| US Non-Farm Payroll (NFP) | First Friday of month, 8:30 AM ET | High | 50-200 pips EURUSD |
| FOMC Decision | 6 times/year (every 6 weeks) | Very High | 100-300 pips |
| ECB Interest Rate Decision | 6 times/year (every 6 weeks) | Very High | 80-200 pips EURUSD |
| CPI (Consumer Price Index) | Second week of month | High | 60-150 pips |
| Retail Sales | Month 12-13 (US) | Medium | 40-100 pips |
| Jobs Report (ADP) | 2 days before NFP | Medium | 30-80 pips |
Pro Tip: If your prop firm restricts news trading, don't fight it. Use the restrictions to your advantage. While other traders are losing on chaotic NFP trades, you're taking structured setups hours or days later. Consistency beats volatility.
Choosing a Prop Firm Based on News Trading
If You Want to Trade News Aggressively
Choose The5ers, Instant Prop, or Funded Next. They allow news trading with minimal restrictions. You can enter 1-2 pips before NFP and exit hours later.
If You Want Flexibility
Choose firms that allow existing positions during news events but restrict new entries. You get the news benefit without the restriction on holding.
If You're Comfortable Avoiding News
FTMO and True Forex Funds have strict restrictions, but their trading environment is otherwise excellent. You simply don't trade 15 minutes before/after major events.
The Bottom Line
News trading is allowed at some prop firms and restricted at others. If news is your edge, select a firm that permits it. If not, choose based on other factors and let the news traders blow accounts on volatility while you compound steadily.
Remember: consistent 2-3% monthly returns beat chasing 200-pip news moves that go against you. But if you're skilled at news trading, a firm that allows it is your best fit.
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