Prop Firm News Trading Restrictions: The Complete 2025 Compliance Guide

• Most prop firms enforce a "restricted window" of 2 minutes before and 2 minutes after high-impact news events for Funded Account traders.
• Firms like FTMO and Maven Trading categorize news trading as a violation on specific account types, while others like FXIFY offer "No News Restrictions" as a selectable add-on.
• News straddling (placing buy-stop and sell-stop orders simultaneously) is widely classified under Prohibited Strategies due to its reliance on simulated execution that cannot be mirrored in real markets.
• Execution logs and slippage audits are used by firms to distinguish between "gambling" (all-in directional bets) and systematic Fundamental Analysis.
• Prohibited news events typically include CPI, Non-Farm Payrolls (NFP), FOMC Interest Rate Decisions, and GDP releases.
• Violating news rules often results in the deduction of profits from the trade or, in cases of repeat offenses, a hard breach of the account.

Trading high-impact news is one of the most contentious topics in the Prop Firm industry. For a trader, news events represent peak volatility and opportunity. For a prop firm, these events represent a liquidity nightmare where simulated fills often fail to match the reality of a Live Account. In 2025, compliance has moved beyond simple "don't trade the news" warnings into complex algorithmic monitoring of entry timing, order types, and slippage patterns.

To understand prop firm news trading compliance 2025, one must understand why firms restrict it. Most prop firms operate on a "demo-to-copy" model. When you trade a Paper Trading account, the platform fills your order instantly at the displayed price. However, during a CPI release, real market liquidity vanishes. Spreads widen from 0.2 pips to 20 pips in milliseconds.

If a firm allows you to trade news on a demo account and promises a Profit Split, they are essentially taking a "B-Book" risk. If your demo order fills at a price that didn't exist in the real market, the firm loses money that they cannot recover by hedging your trade. This is why FTMO's daily drawdown is 5% and why they strictly enforce the 2-minute rule on their "Normal" accounts. They cannot reliably replicate those trades in the real market without incurring massive slippage.

Different firms have vastly different appetites for news volatility.

FTMO News Restrictions

FTMO is the industry standard for the 2-minute restricted window. This applies to their "Evaluation" and "FTMO Account" types. However, their "Swing" account option removes these restrictions in exchange for lower leverage. If you execute a trade within the 4-minute window (2 mins before to 2 mins after) and it hits a profit, that profit is usually removed. If it results in a loss, the loss remains. This is a common Risk Management tactic to discourage "gambling" on Trading CPI on funded accounts.

Maven Trading News Rules

Maven Trading enforces a strict policy on news trading for their "Essential" and "Professional" accounts. They focus on "directional bias vs news straddle" detection. If a trader consistently opens positions only seconds before a high-impact release, Maven's risk desk may flag the account for "gambling" behavior. Their Max Total Drawdown is 8%, and they expect traders to manage risk rather than exploit news volatility.

FXIFY News Trading Policy

FXIFY offers a more flexible approach. While their standard accounts may have restrictions, they allow traders to purchase a "No News Trading Restrictions" add-on during the checkout process. This makes FXIFY news trading policy one of the most transparent for news-focused traders. They provide MT4, MT5, and DXTrade platforms to ensure traders have the technical tools to manage High impact news spread expansion.

The "Prohibited Window" is the specific timeframe where opening or closing a trade is forbidden.

Traders often ask: "Can I hold a trade through the news?" At firms like Blue Guardian, which has a Max Daily Drawdown of 4%, holding through news is generally allowed as long as the position was opened before the restricted window began. The restriction is almost always on the execution (opening or closing) of the trade, not the holding of it.

If you intend to trade news in 2025, you must follow a systematic approach to avoid breaching your Funded Account.

Step 1: Identify "High-Impact" Events in the Firm's Calendar

Most firms, including The5ers and FundedNext, provide a specific news calendar on their website. You must check this daily. Only events marked "High Impact" (often labeled in red) usually trigger the restricted window.

Step 2: Use a Position Size Calculator

Before the news drops, use a Position Size Calculator to account for extreme volatility. If the NFP usually moves the market by 50 pips, your Position Sizing must be small enough that a 50-pip move against you does not hit your Max Daily Drawdown.

Step 3: Set an Automated News Filter

If you use an Expert Advisor (EA), ensure it has a news filter function. This logic should automatically pause trading 5 to 10 minutes before a major release. This is critical for Prop Firm News Trading Compliance 2025 because manual errors are the leading cause of account losses during FOMC or CPI.

Step 4: Verify the Execution Logs After the Event

Once the 2-minute post-release window has passed, check your execution logs. If you were filled with significant slippage, document it. If a firm like Funding Pips or Seacrest Markets flags a trade, you will need these logs to prove you did not violate the restricted window.

Many traders attempt a "news straddle vs news fade" strategy. In a straddle, you place a Buy Stop 10 pips above price and a Sell Stop 10 pips below. When the news hits, one is triggered, and the other is cancelled.

Prop firms almost universally ban this on Funded Accounts. The reason is mathematical: in a real market, a Buy Stop during news will experience "negative slippage." You might want to buy at 1.1000, but the first available price is 1.1020. In a demo environment, you might get filled at 1.1000. This creates a "risk-free" profit for the trader that the Prop Firm cannot replicate. If you are caught straddling, firms like Maven Trading will likely void the profits and may terminate the account under "unrealistic trading behavior" clauses.

During major events like an FOMC Interest Rate Decision, some firms or their liquidity providers may temporarily reduce leverage. If your account is at Max Daily Drawdown limits, a sudden hike in margin requirements could trigger a forced liquidation of your positions.

Traders should use a Drawdown Calculator to ensure they have a "buffer." As discussed in our guide on How to Build a Prop Firm Payout Buffer, keeping your account balance slightly above the initial starting capital allows you to absorb the High impact news spread expansion without hitting your Static Drawdown limits.

Prop firms use sophisticated software to audit Day Trading behavior. They aren't just looking at when you trade, but how.

• Gambling Indicators: Large lot sizes used only during news, no stop losses, and trades lasting less than 30 seconds.
• Systematic Indicators: Consistent Position Sizing, trades that align with a long-term Fundamental Analysis thesis, and holding positions for minutes or hours after the news event.

If you are using a Scaling Plan at a firm like The5ers, maintaining a professional execution profile is vital. They offer Profit Splits up to 100%, but this is reserved for traders who show they are not just "flipping" accounts during NFP.

Can I trade CPI on a prop firm account?

Yes, but it depends on the firm's specific rules. Firms like Funding Pips allow it without restriction, while FTMO requires you to use a Swing account or avoid the 4-minute window surrounding the release. Always check the firm's dashboard for the red-flag news calendar before the London or New York open.

What happens if I accidentally trade during the restricted news window?

In most cases, if it is your first offense, the firm will simply deduct any profits made from that specific trade. However, if the trade resulted in a loss that hit your Max Daily Drawdown, the loss will likely stand, and your account could be breached. Repeated violations are usually treated as a "hard breach" of the Prohibited Strategies policy.

Why do prop firms have news trading restrictions?

The primary reason is the discrepancy between demo (simulated) execution and live market liquidity. During high-impact news, real market spreads widen significantly, and slippage is common. Simulated environments often provide "perfect" fills that the firm cannot replicate in a Live Account, leading to unsustainable losses for the firm's risk desk.

Is news straddling allowed in prop firms?

Generally, no. News straddling—placing buy and sell stop orders right before a release—is considered an "arbitrage" or "gambling" strategy by most firms. Because demo platforms fill these orders without the slippage seen in real markets, it is viewed as an unfair advantage and is often listed under Prohibited Strategies.

Do news restrictions apply to the Evaluation phase?

At many firms, such as FTMO and FundedNext, news restrictions are relaxed during the Evaluation (Phase 1 and Phase 2) stages. The restrictions typically become much stricter once you reach the Funded Account stage, as this is where the firm's actual capital or hedging risk is involved.

Which prop firms have no news trading restrictions?

Alpha Capital Group, Funding Pips, and Seacrest Markets are known for having very lenient or non-existent news trading restrictions. Additionally, FXIFY allows you to bypass these rules by selecting a specific account add-on during your initial purchase.

Can I use a news trading EA on a funded account?

You can use an Expert Advisor (EA), but you must ensure its logic complies with the firm's restricted window. If the EA opens a trade during a prohibited 2-minute window at Maven Trading, you will be held responsible for the breach, even if the execution was automated.

Prop firm news trading compliance in 2025 requires a balance between volatility exploitation and strict adherence to execution windows. While firms like Funding Pips and Alpha Capital Group offer freedom, industry leaders like FTMO enforce a 4-minute "no-trade" zone around high-impact events to protect against simulated liquidity gaps. To stay compliant, traders should prioritize "Swing" account types, avoid straddle orders, and always buffer their accounts against the inevitable spread expansion that occurs during CPI and NFP releases.