News Trading Bans Spreading: Which Firms Still Allow It in 2026?
The prop trading industry is splitting into two camps: those who ban news trading entirely, and those who embrace it. After FTMO's 2026 restrictions hit existing funded accounts, traders are scrambling to find firms that still welcome news strategies. We analyzed 20+ firms to show you exactly where news trading stands today.
What Counts as "News Trading"?
News trading involves taking positions around scheduled economic releases to capture volatility spikes. Most firms consider these "high-impact" events:
- Federal Reserve (FOMC) - Rate decisions and meeting minutes
- Non-Farm Payrolls (NFP) - Monthly US employment data
- Consumer Price Index (CPI) - Inflation reports
- Central bank announcements - ECB, BoE, BoJ rate decisions
- GDP releases - Quarterly economic growth data
- Unemployment claims - Weekly jobless data
- Energy inventories - EIA crude oil and natural gas reports
The typical "news blackout window" runs from 2 minutes before to 2 minutes after the scheduled release time. Some firms extend this to 5 minutes or apply it only to specific instruments (like USD pairs during NFP).
The News Trading Crackdown
News trading restrictions exist to protect firms from extreme volatility and trader gambling. During major releases like NFP, spreads can widen 10-20x normal levels, slippage becomes unpredictable, and even skilled traders can lose accounts to technical issues beyond their control.
But there's a profit motive too. Experienced news traders can capture 50-200 pip moves 15-20 times per month, potentially earning $8,000-$15,000 monthly on a $100K account. That's real money that firms prefer to keep off their books.
Complete Firm Breakdown: News Trading Policies 2026
Firm-by-Firm Analysis
๐ข News Trading Champions
TopStep: The clearest winner for news traders. No restrictions whatsoever across evaluations and funded accounts. Their futures-focused approach treats news trading as legitimate strategy, not gambling.
The5ers: Built their entire marketing around news trading. They literally encourage it, even provide news calendars and trading tips. If your strategy depends on NFP or FOMC, The5ers is your home.
Phidias Prop: Zero restrictions, competitive profit splits, and they're actively recruiting news traders from FTMO. Their "no rules" approach extends beyond news to EAs and weekend holding.
๐ก Conditional Allowance
Apex Trader: Allows news trading but with conditions. You can trade news as part of your "normal strategy" but can't specifically target news events. No straddles or multi-directional plays. One direction per event only.
FunderPro: Free during evaluations, but funded accounts need the "Swing Add-on" for news trading access. It's an extra cost but removes all news restrictions and enables weekend holding.
๐ด The Restrictive Firms
FTMO: The catalyst for this industry shift. Standard funded accounts can't open or close positions 2 minutes before/after major releases. Only their "Swing Account" option removes restrictions, but it requires passing their 2-step challenge first.
Take Profit Trader & ThinkCapital: Complete news trading bans with 5-minute and 2-minute windows respectively. They've decided news trading is incompatible with their risk management approach.
Impact on News Trading Strategies
The news trading crackdown is forcing strategy evolution. Traditional approaches that worked are now banned at major firms:
- Straddle/Strangle setups - Placing pending orders above and below price before news
- Pure volatility plays - Opening positions solely to capture news spikes
- Multiple-direction hedging - Going both long and short around news events
- Pre-positioning - Opening trades minutes before scheduled releases
Successful news traders are adapting by:
- Switching to firms with no restrictions (The5ers, TopStep, Phidias)
- Developing "continuation strategies" that trade the follow-through 5-10 minutes post-news
- Using news as confirmation for existing technical setups rather than primary triggers
- Focusing on less-watched events that don't trigger blackout windows
- Managing multiple accounts across different firms to diversify news access
Where to Go From Here
๐ Best Overall: TopStep
For pure news trading freedom, TopStep leads. No restrictions, 14-year track record, and futures focus that treats news volatility as normal market behavior. The monthly subscription model means ongoing costs, but the trading freedom justifies it for serious news traders.
๐ Best Value: The5ers
One-time challenge fees, no restrictions, and they actively support news trading strategies. Their educational content even teaches news trading techniques. If you're starting fresh or switching from FTMO, The5ers offers the smoothest transition.
๐ก Best for Hybrid Strategies: Phidias Prop
Zero restrictions on anything - news trading, EAs, weekend holding, strategy mixing. If you trade multiple approaches and want maximum flexibility, Phidias removes all friction.
The Future of News Trading
We're seeing a two-tier industry emerging. Conservative firms like FTMO are doubling down on restrictions to minimize volatility risk. Meanwhile, aggressive firms are using "news trading allowed" as a competitive advantage to attract skilled volatility traders.
This trend will likely accelerate. Expect more firms to pick a side rather than trying to split the difference. The firms that embrace news trading will capture that market segment, while restrictive firms will focus on consistent day-to-day scalpers.
For news traders, this is actually positive. Instead of navigating complex rule variations, you'll have clear choices: firms that want your business and firms that don't.
Bottom Line
News trading isn't dead - it's just moving. While FTMO's restrictions dominated headlines, multiple firms actively welcome news traders with no restrictions whatsoever. The key is choosing firms aligned with your strategy rather than fighting against their rules.
If news trading is core to your approach, prioritize firms like TopStep, The5ers, or Phidias over FTMO or restrictive alternatives. If you're flexible on strategy, use our Find My Firm quiz to identify the best overall match.
Frequently Asked Questions
Why are prop firms banning news trading?
Three main reasons: (1) Risk management - extreme volatility can cause slippage and technical issues that blow accounts through no trader fault, (2) Profit protection - skilled news traders can generate $10k+ monthly profits that firms prefer to avoid, (3) Strategy filtering - they want consistent day-to-day traders, not "event gamblers." Learn more about how prop firms make money.
Can I news trade during evaluation phases?
Most firms allow news trading during evaluations, even those that restrict it on funded accounts. FTMO, FunderPro, and MyFundedFutures all permit news strategies during challenges. Only Take Profit Trader and ThinkCapital ban it completely. Check our evaluation rules comparison for details.
What happens if I accidentally trade news during a blackout?
Immediate account termination in most cases, even if the trade was profitable. Firms treat news violations as rule breaches regardless of outcome. Some firms offer warnings for minor violations, but don't count on it. Always monitor economic calendars and set alerts 30 minutes before major releases. Use our news trading calendar to track upcoming events.
Which firms have the longest news blackout windows?
Take Profit Trader has the strictest policy with 5-minute windows (5 minutes before and after each event). Most other restrictive firms use 2-minute windows. FTMO's restrictions apply only to specific instruments affected by each news event, so EURGBP might be tradeable during US NFP while EURUSD is blocked.
Are there any restrictions on cryptocurrency news trading?
Most crypto-focused prop firms like E8 Markets (crypto division) have minimal news restrictions since traditional economic events like NFP have limited impact on Bitcoin and altcoins. However, crypto-specific events like Bitcoin ETF approvals or regulatory announcements may trigger temporary restrictions. Our crypto prop firm guide covers these nuances.