News trading is one of the fastest, most aggressive styles in forex. It revolves around taking positions around major economic releases such as CPI, Non-Farm Payrolls, central bank rate decisions, GDP, and employment data. The appeal is obvious: volatility expands, spreads can shift, momentum becomes explosive, and price can travel far in a very short time. Read on this Best Forex Prop Firms That Allow News Trading to know more about each firm in detail.
The catch is equally obvious. Most prop firms do not like uncontrolled slippage, gap risk, or synthetic profits created by execution distortions. That is why the Best Forex Prop Firms That Allow News Trading are not simply the firms that say “yes” to news trading. They are the firms whose policy structure, execution windows, and funded-stage rules still leave room for a real news-based strategy to function.
Table of Contents
Forex Prop Firms That Allow News Trading: Analytical Comparison Table
| Prop Firm | News Trading in Evaluation | News Trading in Funded Stage | Restriction Window | Hold Through News | Best Fit |
|---|---|---|---|---|---|
| FundedNext | Yes | Yes, but profits around high-impact news are reduced by rule | 5 min before to 5 min after | Yes | Traders who want flexibility and can tolerate reduced credited profit on event trades |
| FTMO | Yes, in 1-Step and 2-Step evaluation | Restricted on standard FTMO Account, unrestricted on FTMO Account Swing | Standard FTMO Account has selected macro-news restrictions | Yes, if opened earlier; Swing is more flexible | Structured traders who want a high-trust brand and can adapt by account type |
| The5ers | Yes, depending on program | Yes, but execution near news is restricted in High Stakes; Hyper Growth allows news trading except bracket strategies | High Stakes: 2 min before to 2 min after | Yes | Traders who hold positions into the release rather than execute at the exact spike |
| Alpha Capital Group | Yes | Yes, but restrictions depend on funded plan | Pro 8%/10%: 2 min before to 2 min after, other funded plans: 5 min before to 5 min after | Effectively yes, but execution rules matter | Traders who want news freedom in assessment and can work around funded windows |
| BrightFunded | Yes | Partially, with a soft-breach profit deduction rule around major news | 5 min before to 5 min after | Yes, with conditions; 48-hour trades get some exemption on TP treatment | Swing-oriented traders and traders who avoid last-minute event entries |
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What News Trading Means in Prop Trading
In retail forex, news trading usually means entering or exiting during a scheduled macro event to capture the immediate volatility expansion. In prop trading, that same behavior is judged through a different lens. Firms care about whether the fill quality, slippage, and execution conditions are realistic enough to mirror an actual institutional or live-market environment. Because of that, some firms allow traders to hold positions through news but do not allow fresh execution during the release window.
Others allow the trade, but reduce or remove profits earned inside that restricted time band. So when evaluating a prop firm for news trading, the real question is not just “Is news trading allowed?” It is “What exactly is allowed at evaluation, what changes after funding, and can my strategy still survive under those rules?”
1. FundedNext: News Trading With Limits
FundedNext is one of the more news-trader-friendly names in this category because it explicitly allows trading during news events in both the challenge phase and the funded phase. That alone makes it stand out. However, the important nuance is the News Reward Share Rule on funded accounts. If a profitable trade is executed within 5 minutes before or 5 minutes after a listed high-impact event, only 40% of that profit is counted toward the trader’s account balance. That means FundedNext is not blocking the strategy, but it is modifying the economics of the strategy at the exact moment news traders care about most.
From a strategic standpoint, FundedNext works best for traders who still want the freedom to trade the release, but who do not rely entirely on the first violent impulse candle for their edge. If your approach is based on continuation, post-news structure, or controlled breakout trading rather than one-second reaction speed, the model remains viable. The funded rule is a friction cost, not a complete ban.
Key Features
- News trading is explicitly allowed in both challenge and funded stages.
- Funded accounts apply a 5-minute before / 5-minute after event window.
- Profitable trades executed in that window count at 40% toward balance under the News Reward Share Rule.
- Stellar 2-Step challenge uses an 8% / 5% target structure.
- Maximum daily loss is 5% and maximum overall loss is 10% in Stellar 2-Step.
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FundedNext Challenge Overview
| Metric | FundedNext Stellar 2-Step |
|---|---|
| Evaluation Type | 2-Step |
| Profit Target | Phase 1: 8%, Phase 2: 5% |
| Max Daily Loss | 5% |
| Max Overall Loss | 10% |
| Minimum Trading Days | 5 |
| News Trading | Allowed |
| Funded Account News Rule | 5 min before to 5 min after high-impact news with profit-share reduction |
| Best News-Trading Use Case | Traders who want flexibility and can accept reduced credited profits around event execution |
2. FTMO: Structured News Trading
FTMO remains one of the most recognized names in prop trading, and for news traders its structure is precise rather than permissive. During both FTMO Challenge: 1-Step and FTMO Challenge: 2-Step, traders may trade freely during macroeconomic news releases. The restrictions begin only after transition to a standard FTMO Account. On the funded account, selected macroeconomic releases become restricted, although open positions are allowed if they were opened more than 2 minutes before the event. FTMO also notes that the FTMO Account Swing does not have restrictions for news trading, and that account type is available to traders who qualified through the 2-Step process.
That makes FTMO analytically strong for disciplined traders who separate evaluation strategy from funded strategy. If your edge is in proving consistency during the challenge and then shifting to a Swing structure or a more measured event plan afterward, FTMO is still highly relevant. It is not the cleanest fit for pure release scalpers on standard funded accounts, but it is one of the clearest in terms of rules and operating framework.
Key Features
- Free news trading in both 1-Step and 2-Step evaluation phases.
- Standard funded FTMO Accounts apply restrictions around selected macroeconomic events.
- Positions may be held through news if opened more than 2 minutes before the event.
- FTMO Account Swing does not have news-trading restrictions.
- FTMO 2-Step uses 10% target in Challenge and 5% in Verification, with 5% daily loss, 10% max loss, and 4 minimum trading days.
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FTMO Challenge Overview
| Metric | FTMO Challenge 2-Step |
|---|---|
| Evaluation Type | 2-Step |
| Profit Target | Phase 1: 10%, Phase 2: 5% |
| Max Daily Loss | 5% |
| Max Overall Loss | 10% |
| Minimum Trading Days | 4 |
| News Trading | Allowed in evaluation |
| Funded Account News Rule | Standard FTMO Account restricts selected macro news; Swing account is unrestricted |
| Best News-Trading Use Case | Traders who want a respected firm and can adapt toward Swing or pre-positioned event trading |
3. The5ers: Hold Through News
The5ers is more nuanced because the answer depends on the program. On Hyper Growth and Bootcamp, news trading is allowed, except for bracket strategies around news. On High Stakes, holding trades over news is allowed, but order execution from 2 minutes before until 2 minutes after high-impact news is prohibited, and profits generated in that restricted interval are deducted while losses remain the trader’s responsibility. That means The5ers is not anti-news. It simply distinguishes between sensible exposure into the event and mechanical execution inside the slippage zone.
For many serious forex traders, that is actually workable. A large percentage of profitable news strategies do not need a market order placed on the exact release second. They need a strong thesis, a clean setup, and enough room to let volatility expand. The5ers suits traders who build positions before the event or trade continuation after the initial shock, especially in its High Stakes structure.
Key Features
- Hyper Growth and Bootcamp allow news trading, excluding bracket strategies around news.
- High Stakes allows holding positions through news.
- High Stakes prohibits execution 2 minutes before to 2 minutes after high-impact news.
- High Stakes profits from prohibited execution windows are deducted, while losses remain.
- High Stakes uses 8% / 5% targets with 5% daily loss, 10% max loss, and 3 minimum profitable days.
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The5ers Challenge Overview
| Metric | The5ers High Stakes |
|---|---|
| Evaluation Type | 2-Step |
| Profit Target | Step 1: 8%, Step 2: 5% |
| Max Daily Loss | 5% |
| Max Overall Loss | 10% |
| Minimum Profitable Days | 3 |
| News Trading | Allowed with execution limits |
| Funded Account News Rule | No order execution 2 min before to 2 min after high-impact news |
| Best News-Trading Use Case | Traders who hold through events or trade before/after the spike instead of at the exact release |
4. Alpha Capital Group: Plan-Based News Access
Alpha Capital Group gives traders full freedom during the assessment phases, which makes it attractive for anyone whose edge depends on event volatility during evaluation. Once funded, however, the rule set becomes account-specific. On Qualified Analyst Pro 8%/10% accounts, traders are not permitted to open new trades or close existing trades on targeted instruments within 2 minutes before and 2 minutes after listed news events. On Qualified Analyst Pro 6%, Qualified Analyst One, and Qualified Analyst Three accounts, that restricted band widens to 5 minutes before and 5 minutes after.
That makes Alpha Capital Group a strong fit for traders who value assessment flexibility and are comfortable selecting a funded plan that matches how tightly they need to work around economic releases. In other words, Alpha is not a universal green light for event scalping, but it is one of the more transparent firms for traders who actively compare policy by account type.
Key Features
- Assessment phases allow free trading during all news releases.
- Pro 8%/10% funded accounts restrict execution 2 minutes before and 2 minutes after listed announcements.
- Other funded account types can use a wider 5-minute before / 5-minute after window.
- Alpha Pro 8% plan uses 8% / 5% targets with 4% daily drawdown and 8% max drawdown.
- Minimum trading days on Alpha Pro 8%/10% are 3 per phase.
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Alpha Capital Group Challenge Overview
| Metric | Alpha Capital Group Pro 8% |
|---|---|
| Evaluation Type | 2-Step |
| Profit Target | Phase 1: 8%, Phase 2: 5% |
| Max Daily Drawdown | 4% |
| Max Drawdown | 8% |
| Minimum Trading Days | 3 per phase |
| News Trading | Freely allowed in assessment |
| Funded Account News Rule | 2 min before to 2 min after on Pro 8%/10%; wider on some other account types |
| Best News-Trading Use Case | Traders who want evaluation freedom and are comfortable structuring around funded-stage event windows |
5. BrightFunded: Swing-Friendly News Rules
BrightFunded is another firm that looks friendly to news traders in evaluation but becomes more conditional after funding. During the challenge and verification process, traders can work through the standard evaluation framework with an 8% challenge target and 5% evaluation target, alongside 5% maximum daily loss and 10% maximum loss. On funded accounts, major news releases introduce a soft-breach style rule: trading within 5 minutes before and 5 minutes after significant news is prohibited, profits made there are deducted, and losses are not compensated. BrightFunded also states that take profits from trades held for at least 48 hours are exempt from the restriction, which clearly favors swing-style positioning rather than last-second event execution.
That makes BrightFunded attractive for traders whose strategy involves building into macro themes before the release and letting the trade resolve over a longer time horizon. It is less suitable for traders who depend on rapid entries and exits exactly around scheduled events.
Key Features
- Evaluation uses an 8% Challenge target and 5% Evaluation target.
- Maximum daily loss is 5% and maximum loss is 10%.
- Funded accounts restrict trading 5 minutes before and 5 minutes after significant news.
- Violations around news are treated as soft breaches, with profits deducted rather than automatic account loss.
- Trades open for 48 hours or more may receive exemption on TP treatment during the restricted window.
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BrightFunded Challenge Overview
| Metric | BrightFunded Standard Evaluation |
|---|---|
| Evaluation Type | 2-Phase |
| Profit Target | Challenge: 8%, Evaluation: 5% |
| Max Daily Loss | 5% |
| Max Overall Loss | 10% |
| Minimum Trading Days | Not shown in the cited rules excerpt here |
| News Trading | Evaluation is flexible; funded stage is restricted around major events |
| Funded Account News Rule | 5 min before to 5 min after major news; profit deduction soft breach |
| Best News-Trading Use Case | Swing traders and macro traders who pre-position well ahead of releases |
Best Forex Prop Firms That Allow News Trading: Final Verdict
FundedNext is best for traders who want the broadest practical permission to trade news and are comfortable with the fact that event-window profits on funded accounts are only partially credited. It is the most direct fit for traders who still want to participate during the release itself.
FTMO is best for serious, process-driven traders who value a mature, clearly structured environment and can adapt their style between evaluation and funded stages. It becomes especially attractive if the trader qualifies for and prefers the FTMO Account Swing route.
The5ers is best for traders who prefer to hold through news or position just before the event rather than trying to game the exact release second. It suits traders who understand that event exposure and event execution are not the same thing.
Alpha Capital Group is best for traders who want free rein during assessment and then are willing to work with funded-stage account-specific restrictions. It is a good fit for adaptable traders who study plan details carefully before purchasing.
BrightFunded is best for swing-oriented macro traders who do not need to open or close trades inside the immediate 10-minute news window and who benefit from the 48-hour trade-duration carveout.
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Conclusion
The best forex prop firms that allow news trading are not necessarily the firms with no rules. They are the firms whose rules still leave enough room for a real edge to exist. FundedNext offers the broadest direct participation, FTMO offers the strongest structure with account-type nuance, The5ers rewards traders who can hold intelligently through volatility, Alpha Capital Group is flexible in assessment but selective after funding, and BrightFunded favors a more patient macro-swing interpretation of news trading.
For any trader evaluating these firms, the winning approach is simple: stop reading the headline claim that “news trading is allowed” and start reading the exact execution window, funded-account treatment, and profit-credit rules. In prop trading, that small print is the entire strategy.
Frequently Asked Questions
What is news trading in forex prop firms?
News trading is a strategy where traders open, close, or hold positions around major economic releases such as CPI, Non-Farm Payrolls, interest-rate decisions, and GDP data. In prop trading, this matters because firms often treat event volatility differently from normal market conditions.
Which prop firm is the most flexible for news trading?
FundedNext is one of the most flexible because it explicitly allows news trading in both challenge and funded phases. However, funded trades executed within 5 minutes before or after listed high-impact news only receive 40% profit credit.
What should traders check before choosing a prop firm for news trading?
Traders should check five things carefully: whether news trading is allowed in evaluation, whether it is allowed in funded accounts, the exact restricted window, whether holding through news is permitted, and how profits or losses are treated if a rule is breached. Those details matter more than the headline claim that a firm “allows news trading.”
