Prop Firms That Allow News Trading 2026
Find firms with flexible economic announcement and news trading policies
View All Live Deals Download Free AppNews Trading Rules by Firm
| Firm | News Trading | Economic Announcements | NFP Trading | Flexibility Rating |
|---|---|---|---|---|
| MyFundedTrader | Most Flexible | Trade before/after only | Not allowed | 8/10 |
| Capital Flow Trading | Most Flexible | Trade with restrictions | Not allowed | 9/10 |
| FTMO | Restricted | Before/after only | Not allowed | 6/10 |
| FundedNext | Restricted | Before/after only | Not allowed | 5/10 |
| Apex Trader | Restricted | Before/after only | Not allowed | 5/10 |
| TopStep | Restricted | Before/after only | Not allowed | 5/10 |
Understanding News Trading Restrictions
News trading is the practice of entering/exiting positions during economic announcements or major data releases. The reason most firms restrict it: extreme volatility, wider spreads, and gap risk. A profitable trader can turn into a losing one during 3-second candles that move 200+ pips.
Prop firms restrict news trading to protect both you and them from catastrophic losses. It's not arbitrary—it's risk management.
Types of News Events
- Major Economic Data: NFP, CPI, interest rate decisions, GDP (most restricted)
- Central Bank Announcements: Fed, ECB, BOJ statements (highly restricted)
- Secondary Economic Data: Jobless claims, manufacturing PMI, retail sales (moderately restricted)
- Minor Events: Housing starts, consumer sentiment (often allowed)
Most News-Trading Friendly Firms
#1: Capital Flow Trading (Most Flexible)
News Trading Policy: Trade during certain economic announcements with restrictions on position size. Close position within 15 minutes of announcement to avoid excessive slippage.
NFP (Non-Farm Payroll): Trading allowed 15 minutes before release. Trading NOT allowed during the release itself (first 5 minutes). Can re-enter 5 minutes after.
Other Major News: Similar rules—trade before/after windows with position size limits during news volatility.
Flexibility Score: 9/10. Most forgiving for traders wanting to capitalize on post-news volatility.
#2: MyFundedTrader (Very Flexible)
News Trading Policy: Limited news trading allowed. Can trade 30 minutes before and after major announcements with position size restrictions.
NFP: Not allowed during release. BUT can enter position 30 minutes AFTER NFP release (when most initial volatility settles).
Other Major News: Similar structure—trade before/after windows with reduced max position size during high volatility.
Flexibility Score: 8/10. Good for traders who want to trade around (not during) major news.
#3: FTMO (Moderately Flexible)
News Trading Policy: News trading is restricted during major economic announcements. Can trade before news, must close before event, cannot re-enter during event.
NFP: Explicitly forbidden. Cannot be holding positions during NFP release. Must close 15 minutes before.
Secondary News: Housing starts, manufacturing PMI, consumer sentiment—trading allowed. These have less severe volatility.
Flexibility Score: 6/10. Workable if you avoid major news days.
Why Most Firms Restrict News Trading
The Risk Problem
During major news events, forex pairs can move 100+ pips in 1 second. A $25K account with 5% daily DD ($1,250 max loss) can blow up in 3 seconds during NFP. Your $500 stop loss becomes a $1,500 loss due to gap execution. This is why firms restrict it.
The Spread Problem
Normal EUR/USD spread: 1-2 pips. During NFP: 10-50 pips. You're fighting spread instead of price movement. Your edge disappears. Firms know this and restrict it.
The Leverage Problem
Prop firm leverage is high (typically 30:1 on forex). During news, leverage becomes dangerous. A 100-pip gap = $3,000 loss on just $100 position. Firms protect against this by restricting news trading.
The Reality
Smart traders don't want to news trade. They want predictable setups with defined risk. News trading is gambling dressed as trading.
Strategies for News Trading Restrictions
Strategy 1: Trade the Post-News Volatility
Instead of trading DURING news, wait 15 minutes post-release. The initial volatility settles, but the trend emerges. This works with all firms and has better risk/reward. Example: NFP at 8:30 AM. Wait until 8:45 AM, then trade the established trend with lower slippage and wider stops.
Strategy 2: Hold Through News (Swing Trading)
Many swing traders simply hold through news because they have wide stops. If you're holding EUR/USD with a 100-pip stop, and NFP moves 80 pips, you survive. MyFundedTrader and Capital Flow Trading allow this since your position is already open.
Strategy 3: Trade Minor Economic Data
Skip NFP, CPI, and interest rate decisions. Trade housing starts, jobless claims, manufacturing PMI. Less volatility, less restriction. Still profitable if you have an edge.
Strategy 4: Trade Non-News Pairs
Don't trade major pairs around major announcements. Trade cross pairs (EUR/GBP, GBP/JPY) or cryptos when major economic news happens. Alternative pairs move differently and less violently.
FAQ: News Trading Rules
Making Peace with News Restrictions
Here's the truth: News trading restrictions are a feature, not a bug. They protect you from your own overleveraging instincts. The best traders avoid news events because the risk/reward is terrible. Here's why:
During major news: Spread widens to 20-50 pips. Your risk is $500, but slippage makes it $1,500. Your 100-pip stop is now 120 pips due to spread. Reward is 150 pips minus 50-pip spread = 100 pips real reward. Risk/reward is 120:100 = 1.2:1. Terrible.
Trading post-news: Spread narrows to 2-5 pips. Your risk is $500 with 100-pip stop. Reward is 150 pips. Risk/reward is 100:150 = 1:1.5. Much better. And the trend is already established.
Restrictions force you into better risk/reward scenarios. Embrace them.
Best Firms if News Trading Matters to You
If you insist on trading around news: Capital Flow Trading (most flexible) or MyFundedTrader (very flexible). Both allow before/after news trading with minor restrictions.
If you want to avoid news entirely: Any firm works equally (FTMO, Apex, TopStep, FundedNext). Their restrictions are identical because standard market practice is universal.
If you're undecided: Choose firms based on profit split, challenge fee, and scaling. News restrictions are a non-factor for 95% of traders.
The Bottom Line on News Trading
Most prop firms restrict news trading because it's high-risk gambling, not trading. The ones that allow before/after trading (MyFundedTrader, Capital Flow) are being generous. Use that flexibility to trade post-news trends, not to scalp during announcements.
If a firm's news trading policy is your primary decision factor, you're focused on the wrong thing. Focus on profit splits (80%+), challenge fees (under $500), and scaling opportunities. News trading is secondary.
Pro traders avoid news. Smart traders exploit post-news trends. Amateurs blow up accounts during news. Know which you are.
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