Is Trading News Allowed with The Funded Trader?

News trading regulations vary by challenge type at The Funded Trader Program. This policy outlines which accounts permit news trading, the specific restrictions that apply, and the consequences for violations.

News Trading Prohibited: Standard Challenge, Rapid Challenge, Royal Challenge, and Dragon Challenge accounts do not permit news trading during any phase, including funded accounts.

News Trading Permitted: Knight Challenge, Knight Pro Challenge, and Royal Pro Challenge accounts allow news trading during both challenge phases and Funded account phases. Traders using these challenge types should exercise heightened caution during major economic announcements and high-volatility market events.

All challenge types that prohibit news trading operate under a mandatory 4-minute restriction window surrounding red folder economic events. This restriction period begins 2 minutes before the scheduled news release and extends 2 minutes after the release.

During this 4-minute restriction window, the following activities are prohibited: opening new market orders, closing existing market orders, executing pending limit orders, and triggering take profit or stop loss orders. These restrictions apply to all tradeable instruments available on the simulated trading platform.

The violation enforcement system operates on a three-strike structure within each phase, with specific consequences for each level of violation.

First and Second Violations: Traders receive warnings for the first two violations within any single phase. When a violation occurs, any profits generated from trades executed during the restricted 4-minute window are deducted from the account balance. Losses from violating trades remain unchanged and count toward the warning accumulation. These profit deductions do not affect the trader's ability to continue in the current phase, provided other account requirements remain satisfied.

Third Violation: Upon the third news trading violation within the same phase, the account receives a hard breach, resulting in immediate account termination. No further trading activity is permitted on that specific account.

Warning counts reset when traders advance to new phases, meaning each phase begins with a clean violation record. However, any profit deductions from previous phase violations carry forward to the new phase account balance.

When traders pass a phase despite having committed news trading violations, the deducted profits transfer to the subsequent phase account. This deduction automatically counts as the first warning for the new phase, meaning traders begin the next phase with one warning already applied.

Traders bear full responsibility for account breaches that result from news trading violation deductions. If profit deductions from news trading violations cause the account balance to fall below daily loss limits or maximum loss limits, the resulting account breach stands as a valid termination, regardless of the underlying cause being a policy violation rather than standard trading losses.

Traders operating on news trading-permitted accounts should implement robust risk management strategies during high-impact economic announcements. Market volatility during these periods can significantly impact account performance, execution quality, and other factors affecting your account.

Please review the restriction table below to see which pairs are prohibited during the following but not limited to news events:

To avoid confusion, it is best to avoid trading the specific instruments affected during high-impact news releases.

​Please note that no compensation will be provided for trades executed during these periods, so it is crucial to manage risk carefully.