The bottom line first
Most major offshore prop firms prohibit opening new positions in the few minutes around major data releases. The specific window — how many minutes before and after — varies by firm, and violations either void the trade’s profit or suspend the account.
In practice, the safe approach is to read the official rule sheet of every firm you use and treat the restricted window as a no-trade zone.
Why the restrictions exist
1. Spreads widen sharply
At NFP, FOMC, and similar releases, spreads can blow out to several or even several dozen times their normal width. The firm carries the resulting P&L exposure, so it limits user trading during these moments to manage its own risk.
2. Repeatable skill is hard to evaluate
The challenge is designed to identify traders who can produce sustained profit. Betting on the direction of a print is, by contrast, low in repeatability and high in speculation, which is why it sits outside the evaluation’s intended scope.
3. Prevention of opportunistic trading
Releases create sharp, brief moves, which incentivize “in fast, out fast” trading designed to extract a large profit and immediately step back. Firms restrict the window in part to discourage that pattern.
News-trading rules at major firms
Confirm current details on each firm’s official site. The following are generally observed guidelines as of May 2026.
FTMO
FTMO prohibits new positions in the two-minute window around High-Impact news (NFP, FOMC, CPI, and similar). Profits from violating trades are removed from the account’s P&L, and repeated breaches can lead to account suspension.
FundedNext
FundedNext applies different rules across its programs. The Express program is generally reported to use a five-minute window, while Stellar uses two minutes.
Topstep
Because Topstep is futures-only, CME circuit breakers can also activate around equity- or rate-sensitive releases. That layers an exchange-level constraint on top of the firm’s own rules.
The5%ers
Some The5%ers plans, such as High-Stakes Challenge and Bootcamp, reportedly allow news trading. By contrast, Instant Funding is reported to apply tighter restrictions.
The5%ers is generally described as comparatively flexible, but the current ruleset should be confirmed on the official site.
FundingPips
FundingPips typically prohibits new positions in a two-minute window around major releases. Holding existing positions through the release time is handled differently depending on the plan.
Releases that are commonly restricted
The exact list varies by firm, but the following releases tend to be restricted at most providers.
United States
- US Nonfarm Payrolls (NFP) — first Friday of each month, 21:30 JST
- FOMC policy decisions, statements, minutes — once or twice a month
- US CPI (Consumer Price Index) — monthly
- US GDP advance estimate — quarterly
- ISM Manufacturing / Services PMI — monthly
- JOLTS Job Openings — monthly
Europe
- ECB policy decisions and press conferences
- BOE policy decisions
- Euro area CPI / German ZEW economic sentiment
Japan
- BOJ policy decisions and Outlook Report
- National core CPI
Commodities (for futures traders)
- US weekly crude oil inventories (EIA)
- US natural gas storage
What happens after a violation
The detail varies by firm, but the common penalty tiers are as follows.
1. Profit voided on the offending trade
The lightest tier. The trade’s profit is removed from the account, but the account itself remains active.
2. Payout held or denied
At the time of a payout request, the firm may review the violation log and decline the payout. The financial impact on the trader can be significant.
3. Account suspension
Repeated violations, or a serious breach (for example, deliberate news trading designed to generate profit), can lead to a permanent ban. Evaluation fees are typically not refunded.
Practical guardrails
Treat restricted windows as no-trade zones
The safest practice is simply not to open new positions around major releases. Adding the firm’s restricted windows to a calendar app helps prevent accidental entries.
Confirm how existing positions are treated
Whether the rule covers “new positions only” or also “positions held through the release” varies by firm. If you plan to hold through a release, confirm the official rule before doing so.
Use an economic calendar
Reviewing the week’s releases in advance via tools like Investing.com makes it considerably easier to manage restricted windows.
Wrap-up
News-trading restrictions are an industry-wide standard, but the fine print varies by firm and program. The unfortunate scenario — paying an evaluation fee, passing, then losing a payout to a single violation — does happen in practice.
Final investment decisions are your responsibility. This site does not provide investment advice.
Recommended firms
The5%ers — for traders who want to skip the evaluation
A 10-year operator (since 2016). Instant Funding lets you start trading immediately without challenge-stage pressure.
→ Visit The5%ers (use code “HZZS4” for a discount)
FTMO — the industry standard
An 11-year operator (since 2014).