In this article, we will discuss whether it is permitted to trade major economic news events with the prop firm Funding Traders.
The Simple Answer
News trading is permitted during the challenge phase, provided risk management procedures are applied.
However, it is not permitted during the funded phase of the prop firm challenge.
2 Step Challenge
| Stage | News Trading Allowed? |
|---|---|
| Step 1 (Challenge) | Yes |
| Step 2 (Challenge) | Yes |
| Funded Account | No |
Funding Traders News Trading Restrictions
Funding Traders offers two main prop firm account types: Next Gen and Legacy. While these accounts differ in other aspects (you can read more about them here), their rules for trading news events are the same.
Trading news events is permitted for both account types during the challenge phase but not during the funded phase, as per their FAQs.
During the prop firm challenge phase, traders must ensure that no more than 50% of profits come from news events; otherwise, the account may be subject to downscaling or retakes.
In the funded phase, trading news events is strictly prohibited. Breaching this rule will result in a deduction of profits, and if the profit deductions exceed the drawdown limit, the account will be breached and lost.
Exceptions While News Trading
It’s important to note that trades opened at least five hours before a news event and closed within the restricted window will not be considered news trading.
Funding Traders Discount Code
If these rules work for you and you want a commission-free trading experience, don’t forget to check out their page on Propvator for the latest discounts.