Best Forex Prop Firms for Swing Traders 2026: Overnight Holding Allowed
Swing traders need prop firms that allow overnight and weekend holding, as swing trades typically last days or weeks. This guide covers the best forex prop firms for swing traders, their overnight holding policies, weekend restrictions, and how they accommodate longer-term trading strategies. Discover which forex prop firms are most swing-trading-friendly.
Best Forex Prop Firms for Swing Traders 2026 - Quick Summary
Bottom Line: Most forex prop firms allow swing trading and overnight holding, though policies vary. FTMO allows overnight positions and weekend holding in most cases. FundedNext explicitly allows weekend holding. Some firms restrict weekend holding or have specific policies. Always verify current overnight and weekend holding policies before starting. Key factors for swing traders: overnight holding allowed, weekend holding policies, and flexible time limits.
What Swing Traders Need from Prop Firms
Overnight Holding Allowed
Swing trades typically last days or weeks, so overnight holding is essential. Most prop firms allow overnight positions, but always verify policies as some may have restrictions.
Weekend Holding Policies
Weekend holding is crucial for swing traders, as positions often span weekends. Some firms allow weekend holding, while others require closing positions before weekend. Verify policies.
Flexible Time Limits
Swing traders need adequate time to let trades develop. Look for firms with longer evaluation periods (60+ days) or unlimited time, allowing trades to play out naturally.
Reasonable Drawdown Limits
Swing trades may have temporary drawdowns before moving in your favor. Reasonable drawdown limits (10%+) allow for natural trade fluctuations without premature account termination.
No Minimum Trading Days
Some firms require minimum trading days, which can conflict with swing trading (fewer, longer trades). Look for firms without strict minimum trading day requirements.
Swap/Interest Considerations
Overnight positions incur swap/interest charges. Consider how these affect your strategy and whether the prop firm passes swap costs to traders or absorbs them.
Best Forex Prop Firms for Swing Traders 2026
1. FTMO - Overnight Holding Allowed
FTMO allows overnight positions and weekend holding in most cases, making them suitable for swing traders. They have clear policies on overnight and weekend holding.
FTMO swing trading advantages: Overnight holding allowed, weekend holding generally allowed (verify current policy), 30-day evaluation periods per phase (adequate time), 10% drawdown limit (reasonable for swing trades), and excellent platform support for swing trading strategies.
FTMO's swing trading policy: Overnight positions are allowed, and weekend holding is generally permitted. However, always verify current policies as they may have specific restrictions or requirements. Their 30-day evaluation periods provide adequate time for swing trades to develop.
2. FundedNext - Weekend Holding Explicitly Allowed
FundedNext explicitly allows weekend holding, making them excellent for swing traders. They have flexible rules that accommodate longer-term trading strategies.
FundedNext swing trading advantages: Weekend holding explicitly allowed, overnight positions allowed, flexible trading rules, good for swing trading strategies, and supportive of various trading styles including swing trading.
FundedNext's swing trading policy: Weekend holding is explicitly allowed, and overnight positions are permitted. Their flexible rules make them one of the best options for swing traders who need to hold positions over weekends.
3. MyFundedFX - Flexible Swing Trading
MyFundedFX allows overnight holding and generally supports swing trading strategies. They have flexible rules that accommodate longer-term trades.
MyFundedFX swing trading advantages: Overnight holding allowed, flexible trading rules, good platform support, and accommodating of swing trading strategies. Verify current weekend holding policies.
MyFundedFX's swing trading policy: Overnight positions are allowed. Verify current weekend holding policies as they may have specific restrictions. Their flexible rules generally support swing trading.
Swing Trading Considerations
Weekend Holding Policies
Weekend holding is crucial for swing traders. Some firms explicitly allow it (FundedNext), others allow it with restrictions (FTMO), and some prohibit it. Always verify current weekend holding policies before starting.
Swap/Interest Costs
Overnight positions incur swap/interest charges. These can add up over time with swing trades. Consider how swap costs affect your strategy and whether the prop firm passes these costs to traders.
Evaluation Time Limits
Swing trades need time to develop. Look for firms with longer evaluation periods (60+ days) or unlimited time. Shorter time limits (30 days) may pressure swing traders to close trades prematurely.
Drawdown Management
Swing trades may have temporary drawdowns before moving in your favor. Ensure drawdown limits (10%+) are adequate for your swing trading strategy and allow for natural trade fluctuations.
Understanding Swing Trading in Prop Firms
Swing trading is a trading strategy that involves holding positions for days to weeks, aiming to profit from medium-term price movements. Swing traders typically make fewer trades (1-10 per month) but hold positions longer than day traders or scalpers.
For swing traders, prop firms must provide: (1) Overnight holding allowed, (2) Weekend holding policies (crucial for swing trades), (3) Flexible time limits (60+ days or unlimited), (4) Reasonable drawdown limits (10%+), (5) No minimum trading days, and (6) Consideration of swap/interest costs.
Swing trading differs from day trading (positions closed same day) and scalping (positions held seconds/minutes). Swing traders need firms that accommodate longer-term positions without restrictions. Not all prop firms are suitable for swing trading due to time limits or weekend holding restrictions.
Swing Trading Strategy Considerations
Position Sizing for Swing Trades
Swing trades may have temporary drawdowns before moving in your favor, so position sizing is crucial. Use appropriate position sizes (typically 0.5-2% risk per trade) to allow for natural trade fluctuations without premature account termination.
Maintain conservative position sizing: Risk 0.5-2% per trade, allow for temporary drawdowns, ensure total risk never exceeds drawdown limits, and account for swap/interest costs over time. Conservative sizing allows trades to develop naturally.
Swap/Interest Costs
Overnight positions incur swap/interest charges, which can add up over time with swing trades. Consider how swap costs affect your strategy and whether the prop firm passes swap costs to traders or absorbs them. Some pairs have positive swaps (you earn interest), while others have negative swaps (you pay interest).
Monitor swap costs: Check swap rates for your trading pairs, consider positive swap pairs (earn interest), account for swap costs in profit calculations, and verify how the prop firm handles swap charges. Swap costs can significantly impact swing trading profitability.
Time Management
Swing trades need adequate time to develop. Look for firms with longer evaluation periods (60+ days) or unlimited time. Shorter time limits (30 days) may pressure swing traders to close trades prematurely before they can develop.
Ensure adequate time: Look for 60+ day evaluation periods, unlimited time options if available, and avoid firms with strict 30-day limits. Adequate time allows swing trades to play out naturally without pressure.
Drawdown Management
Swing trades may have temporary drawdowns before moving in your favor. Ensure drawdown limits (10%+) are adequate for your swing trading strategy and allow for natural trade fluctuations. Tight drawdown limits can terminate accounts prematurely.
Choose appropriate drawdown limits: Look for 10%+ drawdown limits, allow for temporary drawdowns, ensure limits accommodate your strategy, and avoid firms with very tight limits (5% or less) that can terminate accounts prematurely.
Best Currency Pairs for Swing Trading
Swing traders typically focus on major currency pairs with good liquidity and clear trends: EUR/USD, GBP/USD, USD/JPY, AUD/USD, and USD/CAD. These pairs offer good liquidity, tight spreads, and clear swing trading opportunities.
Best pairs for swing trading:
- EUR/USD: Most liquid pair, tight spreads, clear trends, good for swing trading
- GBP/USD: Good volatility, clear trends, suitable for swing strategies
- USD/JPY: Good liquidity, clear trends, popular for swing trading
- AUD/USD: Good volatility, clear trends, suitable for swing strategies
- USD/CAD: Good liquidity, clear trends, popular for swing trading
Avoid exotic pairs with wide spreads and low liquidity, as these can be problematic for swing trading. Focus on major pairs with good liquidity and clear trends for best swing trading results.
Frequently Asked Questions
What prop firms allow swing trading?
Most forex prop firms allow swing trading and overnight holding, though policies vary. FTMO allows overnight positions and weekend holding in most cases. FundedNext explicitly allows weekend holding. Some firms restrict weekend holding or have specific policies. Always verify current overnight and weekend holding policies before starting. See our forex prop firms guide for more details.
Do prop firms allow weekend holding?
Weekend holding policies vary by prop firm. FundedNext explicitly allows weekend holding. FTMO allows weekend holding in most cases. Some firms restrict weekend holding or require closing positions before weekend. Always verify current weekend holding policies before starting, as this is crucial for swing traders.
How long can I hold swing trades with prop firms?
Holding periods depend on the prop firm's evaluation time limits. Most firms offer 30-60 day evaluation periods, which may be tight for swing trades. Some firms offer unlimited time or longer periods (90+ days). Look for firms with 60+ day periods or unlimited time for swing trading.
Do swing trades incur swap costs?
Yes, overnight positions incur swap/interest charges, which can add up over time with swing trades. Swap costs vary by currency pair and direction. Some pairs have positive swaps (you earn interest), while others have negative swaps (you pay interest). Consider swap costs in your swing trading strategy and profit calculations.
What drawdown limits work best for swing trading?
Swing traders need reasonable drawdown limits (10%+) to allow for temporary drawdowns before trades move in their favor. Tight drawdown limits (5% or less) can terminate accounts prematurely. Look for firms with 10%+ drawdown limits that accommodate natural trade fluctuations.
Can I use swing trading strategies during evaluation?
Yes, swing trading strategies can be used during evaluation, but you must meet profit targets within the evaluation time limit. Ensure the evaluation period (typically 30-60 days) is adequate for your swing trading strategy. Some firms offer longer periods or unlimited time, which are better for swing trading.