The FTMO news trading rule determines whether traders can freely open, close, or modify positions during major news events listed on ForexFactory.com. These rules apply to both the challenge phase and the funded account phase.
The Simple Answer
Whether news trading is permitted with FTMO depends on the account type and the phase (challenge or funded). We have provided the details below for clarity.
2 Step Challenge (FTMO Account)
| Stage | News Trading Allowed? |
|---|---|
| Step 1 (Challenge) | Yes |
| Step 2 (Challenge) | Yes |
| Funded Account | No |
2 Step Challenge (FTMO Swing Account)
| Stage | News Trading Allowed? |
|---|---|
| Step 1 (Challenge) | Yes |
| Step 2 (Challenge) | Yes |
| Funded Account | Yes |
FTMO News Trading Restrictions
FTMO has two account types. On the new FTMO Account ‘Swing’ you are permitted to trade the news without any restriction. This applies to all phases of the challenge; step 1, step 2 and also the funded account.
However, on the original FTMO 2 Step Challenge account (FTMO Account) you are NOT to trade the news during the funded phase. That means you can trade the news during the step 1 and step 2 of the challenge, but once funded, the news trading rule applies.
You are restricted from manually opening or closing trades, adjusting Stop Loss (SL) or Take Profit (TP), or placing, editing, or canceling limit orders within 2 minutes before and 2 minutes after high-impact economic news releases.
For example, if a news event occurs at 1:00 PM, you cannot open or close any position from 12:58 PM (2 minutes before) to 1:02 PM (2 minutes after).
After that 4-minute window passes, you can trade freely.
| 12:58 PM | 1:00 PM | 1:02 PM |
|---|---|---|
| No Trading Starts | News Event | No Trading Ends |
| 4-Minute No-Trading Window | ||
Limit Orders
Limit orders or previously opened orders placed over 2 minutes before a news release, can trigger during the event without issue and will not result in a violation of the news trading rule. However, if your Stop Loss or Take Profit is activated/filled during the restricted time window of 2 minutes before until 2 minutes after, it may be taken as an account breach.
Violating the FTMO News Trading Rule
Violations result in a hard breach, meaning your account will be breached and you your account will be disabled and you are disqualified from payouts.
FTMO Discount Code
An FTMO code is currently not available with Propvator. However, you can view offers from all our listed firms below.
View and compare the news trading rules of other prop firms:
