- The test FTMO applies: is the strategy reasonably replicable in a real market with real money?
- Banned: exploiting price-feed errors or latency, HFT-style tools, cross-account hedging, third-party account management, copying others’ trades.
- Also banned: gap-trading abuse around news and market close, and artificially spreading profit to dodge the Best Day rule.
- News restrictions are separate: funded Normal accounts only, 2 minutes either side of selected releases.
FTMO accounts run on simulated capital, with FTMO paying real rewards against simulated performance. That model only works if profits come from strategies that would also work in a live market — so the entire forbidden list boils down to one principle: no exploiting the simulation. Ordinary discretionary trading, scalping, swing trading and EAs are all fine.
Here is what is actually banned, from FTMO’s official Forbidden Trading Practices page. For the evaluation rules, see FTMO rules explained.
The forbidden list at a glance
| Category | What it covers |
|---|---|
| Exploiting platform errors | Trading on price display errors, delayed updates, or slow data feeds (latency / tick-scalping arbitrage) |
| Ultra-high-speed tools | HFT, AI or mass data entry used to gain an unfair advantage |
| Server overload | Automated trading generating more than 2,000 server requests per day |
| Cross-account hedging | Simultaneous opposite positions across accounts — including other firms’ accounts or coordinated groups |
| Third-party account management | Sharing account access, paid pass services, trading on someone’s behalf |
| Gap-trading abuse | Exploiting gaps around major news/reports, or within 2 hours of a market closing for 2+ hours |
| Artificial profit distribution | Spreading profit across days without spreading risk, to circumvent the Best Day rule |
Latency and tick-scalping arbitrage
Strategies that trade against stale or delayed prices — effectively seeing the answer before placing the order — profit only from feed imperfections, never from the market. This is the canonical forbidden practice.
HFT and mass orders
EAs are allowed; ultra-high-speed tools are not. The concrete tripwire worth knowing: automated trading that produces more than 2,000 server requests per day (opening, modifying, closing) counts as abuse. If your EA is order-heavy, check its request volume.
Cross-account hedging and group trading
Hedging inside a single account is permitted. What is forbidden is holding opposite positions across accounts — your own second account, another prop firm’s account, or accounts coordinated with other people — so that one side always passes.
Account management and account sharing
You may not let anyone else access your account, pay someone to pass the evaluation for you, or trade someone else’s account. “Pass-for-hire” services are a contract breach, and payout review is exactly where they get caught — after the work, before the money.
Where copy trading stands
- Copying your own strategy between your own accounts: generally allowed.
- Copying other people’s trades or external signal services: forbidden territory.
- Several people running the same strategy in coordination: forbidden (group trading).
Off-the-shelf EAs and signal services carry an extra risk: many users generating identical trades can look like coordinated trading. If your setup is anywhere near the line, ask FTMO support first and keep the answer.
News trading restrictions (funded Normal accounts only)
Separate from the forbidden list, news restrictions work like this:
| Condition | Detail |
|---|---|
| Applies to | Funded FTMO Accounts, Normal type only |
| During evaluations | Not applied (1-Step or 2-Step) |
| Swing accounts | Not applied |
| The restriction | No opening or closing trades, including pending orders (SL/TP), from 2 minutes before to 2 minutes after selected releases |
The restricted list covers high-impact events — Fed funds rate, NFP, US CPI, FOMC minutes, ECB/BoE/BoC/RBA/RBNZ/SNB rate decisions, crude oil inventories — and can change, so check the official list. If news trading is part of your edge, the clean solution is a Swing account: see FTMO account types.
Consequences of a breach
FTMO’s stated corrective actions:
- Removal of the offending trades from your history
- Restricted access to the trading platform
- Disqualification from the evaluation process
- Forfeiture of rewards
- Termination of all agreements
Trade review happens at payout time, so “get paid before they notice” is not a plan.
A simple self-test
- Would this strategy work identically on a live account with my own money?
- Does it follow risk management a reasonable person would use with their own capital?
- If unsure — ask support before trading, in writing.
Pass those three and normal scalping, day trading, swing trading and EA use are not at risk.
Bottom line
FTMO’s bans fall into two families: strategies that only work in a simulation, and strategies that use other people. Trade your own system with your own hands and you will likely never touch the list. Rented EAs, signal groups and account managers are where funded accounts go to die — usually at payout review, which is the most expensive possible moment.
Prefer different rules altogether? The5%ers — see The5%ers official (coupon code HZZS4 for a discount).