Prop Firms That Allow News Trading 2026
Which firms permit NFP and CPI trading. News trading rules comparison, banned events, and which firms support economic data strategies
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News Trading Restrictions Explained
News trading—entering positions around economic announcements like NFP (Non-Farm Payroll), CPI (Consumer Price Index), or central bank meetings—is heavily restricted across prop firms. Some firms ban all news trading, others allow it with position-size limits, and a few permit unlimited news trading. These restrictions exist because news events create unpredictable volatility, gap moves, and high-leverage losses that firms want to manage.
Major Economic Events & Restriction Status
| Event | Schedule | Volatility | Most Restricted? |
|---|---|---|---|
| Non-Farm Payroll (NFP) | 1st Friday monthly | Very High (50-200 pips) | Yes |
| CPI (Inflation Data) | Monthly mid-month | High (30-100 pips) | Yes |
| ECB/Fed Meetings | 6x yearly (varies) | Very High (100-300 pips) | Yes |
| GDP Data Release | Quarterly | Medium (20-80 pips) | Sometimes |
| ISM/PMI Manufacturing | Monthly | Medium (15-60 pips) | Sometimes |
| Unemployment Claims | Weekly Thursday | Low-Medium (10-30 pips) | Rarely |
News Trading Rules by Firm
| Firm | NFP Trading | CPI Trading | Fed Meetings | Overall Policy |
|---|---|---|---|---|
| FTMO | ✅ Allowed | ✅ Allowed | ✅ Allowed | No restrictions |
| FundedNext | ✅ Allowed | ✅ Allowed | ✅ Allowed | No restrictions |
| TopStep | ❌ Banned | ❌ Banned | ❌ Banned | No news trading allowed |
| Apex Trader Funding | ⚠️ Limited | ⚠️ Limited | ⚠️ Limited | Max 25% of capital |
| MyFundedFutures | ❌ Banned | ❌ Banned | ❌ Banned | No news trading |
| BrightFunded | ✅ Allowed | ✅ Allowed | ✅ Allowed | No restrictions |
| The Funded Trader | ⚠️ Limited | ⚠️ Limited | ⚠️ Limited | Max 15% capital |
| Lucid Trading | ✅ Allowed | ✅ Allowed | ✅ Allowed | No restrictions |
| TradeDay | ❌ Banned | ❌ Banned | ❌ Banned | Strict no-news policy |
| Take Profit Trader | ⚠️ Limited | ⚠️ Limited | ⚠️ Limited | Max 10% capital |
Why Firms Restrict News Trading
Gap Risk: News creates unpredictable 50-300 pip gaps, potentially triggering stop-losses instantly. Leverage Magnification: Positions at 10x leverage with 100 pip news gaps = 10% account drawdown in seconds. Default Risk: Traders over-leveraging news can cause account liquidations, creating firm liability. Account Drawdown Spikes: News events create sharper drawdown curves than normal trading, destabilizing account metrics.
News Trading Strategies & Restrictions
Pre-News Entry: Entering hours before NFP, hoping to catch direction before event. Most firms allow this since entry predates event. Post-News Entry: Entering after event release based on data, accepting volatility. More firms restrict this. Hedged News Position: Long + short positions to profit from volatility regardless of direction. Many firms ban this specifically to prevent hidden leverage.
Limited News Trading Examples
Apex's 25% Policy: Can trade news but maximum risk = 25% of account balance. On a $10,000 account, risking more than $2,500 on NFP violates rules. The Funded Trader's 15% Policy: Max $1,500 risk on $10,000 account during news events. Take Profit Trader's 10% Policy: Most conservative; only $1,000 max risk on $10,000 account.
Best Firms for News Traders
Unlimited News Trading: FTMO, FundedNext, BrightFunded, Lucid Trading. Limited News Trading: Apex Trader (25%), The Funded Trader (15%), Take Profit Trader (10%). No News Trading: TopStep, MyFundedFutures, TradeDay. For serious news traders, only the unlimited firms work.
Position Sizing for News Trading
Even with firm permission, responsible news traders reduce position size to 25-50% of normal size due to gap risk. A 0.5 lot on EUR/USD normally becomes 0.2-0.25 lots for NFP. This 75% reduction protects against unexpected 200+ pip gaps that would devastate full-size positions. Successful news traders scale into positions gradually rather than entering full-size at announcement time.
Frequently Asked Questions
What happens if I trade news at a firm that bans it?
Your account may be suspended. Firms track large winning trades around news times. Violations can result in account closure and profit forfeiture without payment.
Is news trading actually profitable?
Some traders profit from news volatility. However, spread widening during news events eats profits. Most beginning traders lose on news trading due to gap slippage and position sizing errors.
Can I trade economic data other than NFP?
Most firms' restrictions are broader—they ban NFP/CPI specifically but sometimes allow lesser events like ISM. Check firm's economic calendar to see every restricted event.
Should I choose FTMO or FundedNext if I'm a news trader?
Both allow unlimited news trading. Use PFDF code for 10-15% discount on either. FundedNext is slightly cheaper ($79 vs $99) with identical rules.
Can I hold through news events at unlimited firms?
Yes, but position sizing matters. Holding through news is allowed, but gaps can hit your stop-loss instantly, so tight stops are risky.