The Trader's Edge: How to Choose the Best Prop Firm for News Trading in 2026

The release of high-impact macroeconomic news is a pivotal moment in the financial markets. For a brief, adrenaline-fueled window, events like central bank interest rate decisions, Non-Farm Payrolls reports, or inflation data can trigger explosive volatility, creating opportunities for fast, significant profits. For many traders, this is where the real action is. But for a prop trader, this is where a critical question arises: does your firm’s rules give you the freedom to capitalize on these moments, or do they hold you back?

The reality is that a significant number of proprietary trading firms, especially older and more conservative ones, impose strict restrictions on news trading. This guide is your key to navigating this complex landscape. We’ll explore why news trading is a powerful strategy, why most firms restrict it, and why a new generation of trader-centric platforms like FundedSkill are designed to empower you, not constrain you. We’ll give you a clear, honest breakdown of what to look for and how to ensure your prop firm is a partner in your success, not a hurdle.

The Power of News Trading: High Risk, High Reward

News trading is a strategy that focuses on trading during and immediately after the release of major economic or political announcements. The logic is simple: these events are the primary drivers of market volatility, causing sudden and dramatic price swings that create potential for large gains in a very short period. For a skilled trader who can anticipate market sentiment and react with precision, news trading can be incredibly profitable.

However, this strategy is not for the faint of heart. The very volatility that creates opportunities also presents significant risks. Rapid price movements, wider spreads, and slippage can make it difficult to execute trades at your intended price, and a single, swift market reversal can lead to substantial losses. This is a high-stakes game that requires a strong risk management plan and iron-clad emotional control. The rewards, however, can be substantial for traders who have mastered this art.

The Industry Problem: Why Most Firms Restrict News Trading

Given the potential for profit, why would a prop firm, whose business is built on its traders’ success, choose to restrict news trading? The answer lies in risk management. Prop firms are designed to be a “scouting firm” and not a traditional brokerage, which means they are highly sensitive to market risk. Sudden, explosive volatility can lead to a string of losses that can destabilize the firm’s capital and lead to system failures.

For this reason, many firms have a policy against news trading, or they place strict rules on it. For example, on its standard accounts, FTMO prohibits traders from opening or closing trades within a two-minute window before and after a high-impact news release. While they do offer a “swing account” that permits news trading, it comes with a lower leverage. These restrictions, while designed to protect the firm, can be a major source of frustration for traders who rely on these strategies. They essentially force a trader to sit on the sidelines during the most exciting and potentially profitable market moments.

The FundedSkill Solution: Trade the News, Your Way

FundedSkill was built for the modern trader, and its policies reflect a deep understanding of what traders need to succeed. The firm’s approach to news trading is a clear and powerful advantage: it is completely unrestricted. The firm permits traders to hold positions overnight, over weekends, and, most importantly, during high-impact news announcements. This is not just a feature; it’s a core philosophy that provides a significant psychological advantage. It gives you the freedom to trade your strategy, your way, without fear of being disqualified by an arbitrary rule.

The firm’s flexible trading environment also extends to other practices that are often restricted by competitors. FundedSkill allows the use of Expert Advisors (EAs) and copy trading, which are strategies often employed by news traders who need to react with algorithmic speed to market movements. This combination of unrestricted trading and technological support makes FundedSkill an ideal platform for traders who are looking to capitalize on market volatility without fear of being constrained by a firm’s rules.

A Trader's Blueprint for Profitable News Trading with FundedSkill

While FundedSkill provides the freedom to trade the news, it is still up to you to trade responsibly. News trading is a high-risk activity, and a disciplined approach is essential for long-term success. Here is a blueprint to help you master this strategy:

1. Know Your News Calendar: The first rule of news trading is to know when the news is coming out. You should have a clear, up-to-date economic calendar that flags all high-impact news events for the currency pairs you are trading.
2. Develop a Solid Trading Plan: Before the news is released, you must have a clear trading plan with predefined entry and exit points, a stop loss, and a clear understanding of your risk-to-reward ratio. The goal is to trade your plan, not your emotions. Remember, FundedSkill allows you to use EAs and automated systems, which can be a powerful tool for executing your plan with speed and precision during volatile moments.
3. Use Stop Losses and Manage Risk: News trading requires an unwavering commitment to risk management. Due to rapid price movements, slippage is a real risk, so it is crucial to use a stop loss on every single trade to protect your capital. You must also adhere to FundedSkill’s daily and overall drawdown limits, which are in place to ensure you are trading responsibly.
4. Practice on a Demo Account: If you are new to news trading, it is highly recommended to practice your strategy on a demo account first. This allows you to test your plan and build confidence in your ability to execute it under pressure without risking a failed challenge.

The Bottom Line: Your Freedom, Your Success

Choosing a prop firm is about more than just finding the lowest price. It is about finding a partner that provides a framework for your success. For traders who want to capitalize on the volatile, high-stakes world of news trading, FundedSkill’s unrestricted policies are a clear and powerful advantage. The firm’s commitment to flexible trading, competitive pricing, and a trader-centric environment makes it a compelling choice for any trader looking to turn their skills into a professional career.

By providing a platform that trusts you to manage your own risk, FundedSkill empowers you to achieve consistent profitability on your own terms. The firm removes the arbitrary restrictions that can derail a profitable strategy and gives you the tools, capital, and freedom you need to trade your way to the top. The era of restrictive prop firms is over. The new era is one of partnership, flexibility, and freedom, and FundedSkill is leading the charge.