News Trading Prop Firms: Best Firms for News Traders 2026
Discover the best news trading prop firms that allow trading during high-impact economic events, NFP releases, central bank announcements, and other market-moving news. This comprehensive guide compares prop firms with flexible news trading policies, helping you find the perfect funded account for capitalizing on economic volatility.
News trading prop firms allow traders to capitalize on volatility during economic releases and high-impact news events. Source: Unsplash
What Are News Trading Prop Firms?
News trading prop firms are proprietary trading companies that allow traders to trade during high-impact economic news events, including Non-Farm Payrolls (NFP), Federal Reserve announcements, central bank decisions, GDP releases, inflation data, and other market-moving economic indicators. These firms have flexible policies that permit trading during volatile news periods.
Top news trading prop firms include FundedNext (explicitly allows news trading), E8 Markets (flexible news policies), FunderPro (news trading permitted), and MyFundedFX (allows economic event trading). These firms understand that news trading requires specific policies and execution capabilities.
How News Trading Prop Firms Work
Learn how news trading prop firms support economic event trading and high-impact news strategies.
Best News Trading Prop Firms 2026
1. FundedNext
FundedNext is the premier prop firm for news trading, explicitly allowing news trading without restrictions. They understand that economic events create trading opportunities and have designed their rules to accommodate news traders.
FundedNext's news trading policy is clear: all news events are allowed, including high-impact releases like NFP, FOMC, ECB decisions, and central bank announcements. They don't restrict trading during news events or require closing positions before major releases. Their execution remains reliable during volatile periods.
Key advantages for news traders: explicit news trading allowed, no restrictions on high-impact events, reliable execution during volatility, fast scaling to $4M, and multiple evaluation models (Evaluation, Express, Stellar). FundedNext's profit sharing during evaluation (Stellar program) means news traders can earn while proving their strategies.
FundedNext Rating
✓ News trading allowed
✓ No restrictions
✓ Reliable execution
✓ Fast scaling
âš 5% daily drawdown
2. E8 Markets
E8 Markets offers flexible news trading policies with ECN execution ideal for news trading. They allow trading during economic events with clear guidelines on what's permitted.
E8 Markets' news trading policy is flexible: they allow most news events but may have specific restrictions during extreme volatility periods. Their ECN execution provides direct market access, which is beneficial for news traders who need fast execution during volatile periods.
Key advantages: flexible news policies, ECN execution, multi-asset access (forex, indices, commodities, crypto), accounts up to $400K, and reliable infrastructure. E8 Markets' ECN model means news traders get direct market access without dealing desk intervention.
E8 Markets Rating
✓ Flexible policies
✓ ECN execution
✓ Multi-asset
✓ Reliable
âš Some restrictions
3. FunderPro
Fast-growing prop firm with news trading permitted. 24-hour payouts appeal to news traders. Good execution during volatile periods.
4. MyFundedFX
US-based prop firm allowing economic event trading. Excellent execution and customer support for news traders.
5. True Forex Funds
Established firm with news trading allowed. No time limits on evaluation give news traders flexibility to wait for optimal events.
6. Apex Trader Funding
Futures prop firm with flexible rules. News trading allowed for futures markets. No daily drawdown benefits news traders.
News Trading Prop Firms Comparison
| Firm | News Trading | NFP Allowed | Max Funding | Profit Split | Execution |
|---|---|---|---|---|---|
| FundedNext | Fully Allowed | Yes | $300K (→$4M) | 90% | STP |
| E8 Markets | Flexible | Yes | $400,000 | 80% | ECN |
| FunderPro | Allowed | Yes | $200,000 | 90% | STP |
| MyFundedFX | Allowed | Yes | $600,000 | 80% | STP |
| FTMO | Restricted | No | $400,000 | 90% | ECN/STP |
Key Features for News Trading Prop Firms
1. News Trading Policy
The most critical feature for news traders is a clear, permissive news trading policy. Some firms allow all news events, others restrict specific high-impact releases (NFP, FOMC), and some prohibit news trading entirely. Always verify the firm's news trading policy before choosing.
Best policies: FundedNext (fully allowed), E8 Markets (flexible), FunderPro (permitted)
2. Execution During Volatility
News events create extreme volatility and slippage. Prop firms with reliable execution during volatile periods are essential. ECN execution typically provides better fills during news events than dealing desk execution.
Best execution: E8 Markets (ECN), FundedNext (reliable STP), FunderPro (fast execution)
3. Spread Behavior During News
Spreads typically widen significantly during high-impact news events. Some prop firms widen spreads more than others, which can impact news trading profitability. ECN execution often provides tighter spreads during news than market maker execution.
Best spread behavior: E8 Markets (ECN spreads), FundedNext (reasonable widening), FunderPro (competitive)
4. No Position Closing Requirements
Some prop firms require closing positions before high-impact news events. This prevents news traders from capitalizing on volatility. The best news trading prop firms allow holding positions through news events.
No closing required: FundedNext, E8 Markets, FunderPro, MyFundedFX
How to Choose a News Trading Prop Firm
1. Verify News Trading Policy
Read the firm's news trading policy document carefully. Check which events are allowed, which are restricted, and whether positions must be closed before high-impact releases. Some firms allow news trading but restrict specific events like NFP or FOMC.
Key questions: Are all news events allowed? Is NFP trading permitted? Do I need to close positions before FOMC? Are there spread widening policies during news?
2. Test Execution During Volatility
News events create extreme volatility and slippage. Test execution on demo accounts during news events to verify fill quality and slippage. ECN execution typically provides better fills during news than dealing desk execution.
Test before committing: Use demo accounts to test execution during NFP, FOMC, or other high-impact events before purchasing an evaluation.
3. Understand Spread Widening
Spreads widen significantly during news events. Some firms widen spreads more than others, which can impact profitability. ECN execution often provides tighter spreads during news, but may have commission costs.
Calculate total cost: Spread cost + commission (if ECN) during news events. Compare across firms for your typical trade size.
4. Check Slippage Policies
Slippage is common during news events. Some prop firms have policies regarding slippage that may affect news trading. Understand how the firm handles slippage during volatile periods.
Important: Check if the firm guarantees fills at requested prices or if slippage is accepted during news events.
5. Review Risk Management Rules
News trading can create large price movements. Ensure the firm's drawdown rules accommodate news trading volatility. Some firms have daily drawdown limits that might be triggered by news event volatility.
Best for news: Firms with no daily drawdown or high daily limits (8%+) are better for news trading, as news events can create temporary adverse moves before reversing.
News Trading Strategies with Prop Firms
NFP Trading
Non-Farm Payrolls is one of the most volatile news events. Prop firms that allow NFP trading provide opportunities for significant profits, but require careful risk management due to extreme volatility.
Best firms: FundedNext (fully allowed), E8 Markets (flexible), FunderPro (permitted)
FOMC Trading
Federal Reserve announcements create significant market movements. Prop firms allowing FOMC trading enable traders to capitalize on interest rate decisions and policy statements.
Best firms: FundedNext (allowed), E8 Markets (flexible), MyFundedFX (permitted)
Central Bank Decisions
ECB, BOE, BOJ, and other central bank decisions create volatility. Prop firms with flexible news policies allow trading these events across multiple currency pairs.
Best firms: FundedNext (all central banks), E8 Markets (multi-asset), FunderPro (flexible)
Economic Data Releases
GDP, inflation (CPI), employment data, and other economic indicators create trading opportunities. Prop firms allowing news trading enable traders to capitalize on these releases.
Best firms: FundedNext (all data releases), E8 Markets (flexible), True Forex Funds (allowed)
Frequently Asked Questions
Can I trade NFP with prop firms?
Some prop firms allow NFP (Non-Farm Payrolls) trading, while others restrict it due to extreme volatility. FundedNext explicitly allows NFP trading. E8 Markets permits it with flexible policies. FTMO restricts trading during NFP and other high-impact events. Always verify NFP trading policies before attempting to trade this high-volatility event.
Why do some prop firms restrict news trading?
Some prop firms restrict news trading because: extreme volatility can quickly trigger drawdown limits, spreads widen significantly making execution difficult, slippage increases during news events, and news trading requires specialized risk management. However, many firms allow news trading with proper risk management.
What happens to spreads during news events?
Spreads typically widen significantly during high-impact news events. ECN execution often provides tighter spreads during news (but may have commission), while market maker execution may widen spreads more. Always test spread behavior during news events on demo accounts before trading with real funds.
Can I use EAs for news trading with prop firms?
Most prop firms that allow news trading also allow Expert Advisors (EAs) for automated news trading. However, ensure your EA complies with the firm's news trading policies and EA restrictions. Some firms prohibit certain EA types (like grid/martingale) that might conflict with news trading strategies.
Which markets are best for news trading with prop firms?
Forex pairs (especially major pairs like EUR/USD, GBP/USD, USD/JPY) are most popular for news trading due to high liquidity and volatility during economic releases. Indices like S&P 500 can also be traded during US economic releases. Choose markets that align with your prop firm's offerings and your expertise in economic analysis.
How do I manage risk when news trading with prop firms?
News trading requires strict risk management: use smaller position sizes due to extreme volatility, set tight stop losses (but be aware of slippage), avoid over-leveraging during news events, and understand that news can move against you quickly. Choose prop firms with reasonable drawdown limits that accommodate news trading volatility.
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