News trading can make some of the biggest market moves of the week, but it is also one of the quickest ways to break a prop firm’s rules. If you’re looking for the best prop firms for news trading then this guide is for traders that trade economic releases intentionally like Non-Farm Payrolls (NFP), CPI, FOMC decisions or interest rate announcements. This isn’t for traders looking for unrestricted high frequency trading, or for traders who do not care about risk management.
Many comparison articles simply list companies that “allow news trading.” But that’s only half the story. The real question is can you still get a payout if you made profits during news events. Different firms define news trading differently and some restrictions are only in the fine print.
The comparison focuses on practical trading conditions, hidden limitations and what kind of trader each firm really suits.
What Is News Trading?
News trading is the practice of opening or managing positions around scheduled economic events that can create sudden volatility.
Common examples include:
- Nonfarm payrolls
- CPI (Consumer Price Index)
- Federal Reserve rate actions
- Bank of England or ECB announcements
- GDP releases
Some traders will put trades seconds before the announcement in anticipation of a breakout. Others wait for the first wave to die down, then jump on the bandwagon. News events are included in both approaches, although many prop firms distinguish between them.
Understanding these differences is more important than simply checking whether a firm says “news trading allowed.”
Why Prop Firms Restrict News Trading
News releases create conditions that differ from normal market behavior.
During major announcements:
- Spreads can be quite wide.
- Liquidity can disappear for short periods.
- There can be a lot of slippage in the orders.
- Price gaps are more frequent.
The stop loss is hit but well beyond the intended level and the trader could risk 1% but lose 2%. The prop firm takes on this execution risk, which is why so many firms put in place restrictions on major economic releases.
This is also why firms that advertise unrestricted news trading often have stricter drawdown limits or additional payout reviews.
Quick Comparison of the Best Prop Firms for News Trading
| Prop Firm | News Trading | Profit Split | Daily Drawdown | Overall Verdict |
| FTMO | Allowed on funded accounts with specific conditions | Up to 90% | 5% | Excellent for experienced discretionary traders |
| The5ers | Generally allowed with clear guidelines | Up to 100% (depending on program) | Varies by program | Good for swing traders holding through events |
| TradeThe Pool | Stock market news allowed with transparent rules | Up to 80% | Program dependent | Strong choice for equity news traders |
| FundedNext | Available on selected account types | Up to 90% | Program dependent | Flexible but requires careful rule reading |
| Funding Pips | News trading varies by account model | Up to 90% | Varies | Suitable if account restrictions match your strategy |
Rules change frequently, so always verify the latest trading conditions before purchasing an evaluation.
FTMO Review for News Traders
Quick Verdict
FTMO is still one of the best choices out there for disciplined news traders, thanks to its well-documented trading conditions. But this is only useful if you know when the restrictions are in force.
Rules Snapshot
| Feature | Details |
| News Trading | Allowed under defined conditions |
| Profit Split | Up to 90% |
| Daily Drawdown | 5% |
| Maximum Loss | 10% |
| Weekend Holding | Allowed on Swing accounts |
Best For
- Experienced discretionary traders
- Swing traders
- Traders with structured risk management
Worst For
- High-frequency news scalpers
- Traders entering seconds before releases without understanding execution risks
What Many Traders Miss
Many traders think that if FTMO allows news trading then all news strategies are fine.
Execution quality matters, in fact. “Profitable, abnormally priced trades may be subject to further review. Traders depending solely on latency advantage or abnormal price spike should read the trading objectives carefully.
You can read about it in more detail in our FTMO review , where we cover execution quality, payouts, and long-term consistency.
The5ers Review for News Trading
Quick Verdict
The5ers has become popular among swing traders because its programs are generally designed for longer holding periods rather than aggressive intraday scalping.
Rules Snapshot
| Feature | Details |
| News Trading | Generally permitted |
| Profit Split | Up to 100% depending on program |
| Daily Drawdown | Program specific |
| Overnight Holding | Allowed |
| Weekend Holding | Allowed |
Best For
- Swing traders
- Position traders
- Traders who combine technical analysis with macroeconomic events
Who Should Avoid It
If you are a scalper looking for ultra-fast executions on big releases there might be better options elsewhere.
Trade The Pool Review
Quick Verdict
TradeThe Pool is a prop firm that deals in stocks rather than forex like many others. Earnings reports, sector news and company announcements present different trading opportunities than macroeconomic releases.
The firm’s rules are generally transparent and one knows what is allowed before opening positions.
Rules Snapshot
| Feature | Details |
| Market | Stocks |
| News Trading | Allowed within published rules |
| Profit Split | Up to 80% |
| Risk Model | Transparent daily risk parameters |
Best For
- Stock traders
- Earnings traders
- Momentum traders
What Competitors Often Ignore
Most comparison articles focus only on forex.
Stock traders have a whole different set of news events including earnings reports, FDA approvals, mergers and analyst upgrades. TradeThe Pool fills this void with a regulated environment built specifically for equity traders and not forex speculation.
Readers can get up to 10% discount when buying through our TradeThePool link. The discount is nice but you should choose the firm based on whether or not the risk rules are suitable for your trading style anyway.
FundedNext Review
Quick Verdict
FundedNext has a couple of account models and profit splits are competitive. News trading permissions vary according to the program you choose.
Best For
- Traders who read account-specific rules carefully
- Traders comfortable with adapting strategies
Who Should Avoid It
Anyone who believes all funded accounts have the same news policies.
It is a common mistake to copy another trader’s strategy without first checking if the account model allows the same execution.
Funding Pips Review
Quick Verdict
Funding Pips has competitive evaluation models but news trading policies vary from account to account.
This flexibility is great for the seasoned traders but confusing for the beginners who expect the same rules everywhere.
Best For
- Traders comparing multiple evaluation models
- Traders ready to change tactics
Worst For
- Beginners purchasing without reviewing restrictions
Strategy Fit Analysis
Different news traders require different environments.
| Strategy | Best Match |
| NFP breakout trading | FTMO |
| Swing trading through central bank meetings | The5ers |
| Stock earnings trading | Trade The Pool |
| Flexible account options | FundedNext |
| Multiple evaluation styles | Funding Pips |
There is no universal winner because trading style matters more than marketing claims.
What Most Competitors Don’t Explain
This is where many comparison articles end by confirming if news trading is permitted or not.
That leaves several important questions out.
News Trading Does Not Mean Unlimited Trading
Some firms will allow you to stay in any current trades, but not allow you to open new trades in the period leading up to a high impact announcement.
Others allow both but audit execution after the fact.
These differences completely change the characteristics of a strategy.
Slippage Can Cause Rule Violations
Imagine taking a 0.5% risk before CPI.
The announcement is creating a sudden liquidity gap and your stop is triggered much further away than expected. Instead of losing .5% you lose 1.3%.
Your approach was correct, but execution brought your account closer to the daily drawdown limit.
This possibility is expected by professional traders before entering volatile events.
Passing an Evaluation Is Easier Than Staying Funded
Many traders build aggressive strategies specifically to pass an evaluation.
Once funded, those same strategies become difficult to sustain because news volatility increases psychological pressure and execution uncertainty.
The traders who remain funded usually reduce position size rather than increase it.
Common News Trading Mistakes
Several patterns appear repeatedly among traders who lose funded accounts.
Trading every economic release
Some announcements will not provide trading opportunities. Many releases have unpredictable price action and no clear direction.
Ignoring spread expansion
A setup that looks good on the historical chart may not work in live conditions because historical candles rarely show actual spreads.
Using oversized leverage
Higher volatility doesn’t mean higher profits. It is often found to improve emotional decision making.
Not reading payout rules
Some traders learn the hard way that certain execution methods are more scrutinized after becoming profitable.
Always easier to read the rule book first than argue the validity of a denied payout after the fact.
Truth vs Opinion
Fact
News trading has a higher execution risk than normal market conditions.
Fact
There are trading restrictions because prop firms have a legitimate reason to manage this risk.
Opinion
A company that clearly states what their news policy is, is generally better than one that advertises unlimited freedom with vague terminology.
But even if the rules are a bit more restrictive, transparency is better for traders to make better decisions..
Alternatives to Consider
If none of the firms above fit your strategy, consider these alternatives.
E8 Markets
Good for traders who want flexible account structures, but always check the news policies before buying..
Topstep
A good choice for futures traders who pay attention to scheduled economic events affecting index futures.
Blueberry Funded
Good to consider if your strategy is more swing trading than aggressive news scalping.
When choosing a prop firm, always start with your trading plan, not profit split percentages.
How to Choose the Right News Trading Prop Firm
Before purchasing any evaluation, ask yourself:
- Do I enter trades before announcements or after volatility has died down?
- Can my strategy survive with wider spreads?
- “Is the firm’s daily drawdown consistent with my average losing day?
- Does it matter if you work overnight or on the weekend?
- I trade forex, futures and stocks mainly.
- These questions are often more important than the advertised profit split.
If your strategy is based on stock catalysts vs forex economic releases, then TradeThe Pool is worth considering, given its regulated structure and clearly published risk framework. The firm’s rules should always be considered in relation to your own trading style but readers can get up to 10% discount by purchasing through our TradeThePool link.
Final Thoughts
The best news trading prop firms aren’t always the ones with the least restrictions. These are the companies whose policies are transparent in volatile markets and whose rules match your trading strategy.
As veteran traders know, consistency beats chasing every economic release. A company with clear execution rules, reasonable drawdown limits and transparent payout rules is usually a better long term choice than one with grand marketing promises.
If you are still weighing up firms, our guides on prop firm profit split comparisons, detailed FTMO review, TradeThe Pool review and the truth about passing prop firm challenges offer a deeper dive into how these rules affect long-term profitability.
FAQs
What prop firms allow news trading?
You can trade news with several popular firms, although there are certain restrictions, such as FTMO, The5ers, Trade The Pool, FundedNext, Funding Pips. Restrictions depend on your account type, so always read up on the latest trading rules.
Are funded accounts risky for news trading?
Yes. News events will cause more slippage, wider spreads and more volatility, making it easier to blow your daily drawdown limits even if your market analysis is right.
Can I hold trades over major news events?
Some prop firms permit existing positions to remain open during scheduled announcements, whereas some do not allow any new trades to be opened within a defined time frame. The policy is subject to the firm’s rules.
Is TradeThe Pool any good for news traders?
TradeThe Pool is a good choice for stock traders who trade earnings, company news and sector news. Unlike many prop firms that focus on forex, it has a regulated environment and transparent risk rules.
Should newbies trade big news events?
Not in general. Often, new traders overestimate the risk of implementation and the emotional pressure that comes with highly volatile events. Many traders become consistently profitable learning normal market conditions prior to trading major economic releases.