8 Best Prop Trading Firms That Allow News Trading in 2026

The prop trading industry has undergone a revolutionary shift. While older firms banned trading during market-moving events, eight modern prop firms now embrace high-impact news trading with flexible policies and attractive 80-100% profit splits.

With industry valuation climbing to $20 billion supporting over 2,000 firms, competition has forced a trader-friendly evolution. Here are the best prop firms that actually let you trade the news.

Trading Risk Warning: Prop trading involves significant risk. Only trade with capital you can afford to lose. News trading creates extreme volatility and requires advanced risk management skills.

Why Traditional Firms Banned News Trading

Old-School Restrictions

Legacy prop firms like FTMO historically banned news trading due to:

• Extreme volatility during economic releases
• Unpredictable market gaps and slippage
• Higher risk of account blowouts
• Difficulty in risk assessment
• Broker execution issues during high volume

The Modern Revolution

New-generation firms recognize that:

• Skilled traders profit from volatility
• News trading is a legitimate strategy
• Restrictions limit trader potential
• Competition demands flexibility
• Technology enables better risk management

Top 8 News Trading-Friendly Prop Firms

1. E8Markets - News Trading Specialist

News Trading Policy:

• Explicitly allows high-impact news trading
• No restrictions on NFP, FOMC, or CPI releases
• Provides economic calendar integration
• Offers news trading educational content

Key Features:

• 80% profit split (increases to 90%)
• $25K to $400K account sizes
• 5% maximum loss rule
• No minimum trading days
• One-step evaluation process

Pros:

• Most transparent news trading policy
• Fast evaluation process
• Competitive fees ($420 for $100K account)
• Excellent customer support

Cons:

• Smaller brand recognition
• Limited educational resources

Best for: Dedicated news traders and scalpers

2. FundingTraders - Flexible Policies

News Trading Approach:

• Allows trading 2 minutes before/after major news
• No restrictions on medium-impact events
• Provides risk management guidelines
• Offers specialized news trading accounts

Account Details:

• 90% profit split available
• $10K to $200K account options
• 6% maximum loss limit
• Bi-weekly payouts
• MetaTrader 4/5 and cTrader

Pros:

• Very generous profit splits
• Multiple platform options
• Reasonable evaluation criteria
• Active trading community

Cons:

• Higher evaluation fees
• Stricter consistency rules

Best for: Experienced traders seeking high profit splits

3. FunderPro - Balanced Approach

News Trading Rules:

• Permits trading during most news events
• Restrictions only on extremely high-impact releases
• Clear guidelines provided upfront
• Risk management tools included

Program Structure:

• 80-85% profit split
• $10K to $500K funding levels
• 8% maximum loss rule
• Scaling plan up to $2.5M
• No time limits on evaluation

Pros:

• Largest funding potential
• No time pressure during evaluation
• Comprehensive risk tools
• Strong broker relationships

Cons:

• More complex evaluation process
• Higher monthly platform fees

Best for: Traders planning long-term growth

4. TradingFunds - Tech-Forward Firm

Innovation in News Trading:

• AI-powered risk monitoring during news
• Automated position sizing adjustments
• Real-time volatility alerts
• Advanced execution algorithms

Account Features:

• 90% profit split after $10K profit
• $25K to $300K accounts available
• 5% daily loss limit
• Instant evaluation results
• Mobile trading encouraged

Pros:

• Cutting-edge technology
• Fastest evaluation process
• Mobile-first approach
• Transparent fee structure

Cons:

• Newer company with limited track record
• Smaller trader community

Best for: Tech-savvy traders who want modern tools

5. ApexTrader - Swing Trader Friendly

News Trading Philosophy:

• Encourages fundamental analysis
• Allows position holding through news
• Provides macro research tools
• Supports longer-term strategies

Program Details:

• 100% profit split after $25K profit
• $50K to $300K initial funding
• 3% maximum daily loss
• Monthly profit targets
• Multiple asset classes

Pros:

• Highest possible profit split
• Supports longer holding periods
• Multi-asset trading
• Strong educational program

Cons:

• Higher profit targets required
• Longer evaluation period

Best for: Swing traders and fundamental analysts

6. FlexTradingFund - Maximum Freedom

Liberal News Policy:

• No restrictions on any news events
• Encourages aggressive trading styles
• Provides leverage up to 1:100
• Offers hedge fund-style freedom

Account Structure:

• 85% profit split standard
• $20K to $500K funding
• 7% maximum loss rule
• Weekly withdrawals available
• All trading styles welcome

Pros:

• Most flexible trading rules
• High leverage available
• Fast withdrawal processing
• Supports all strategies

Cons:

• Higher risk tolerance required
• More expensive evaluation fees

Best for: Aggressive traders and scalpers

7. ModernTraderFund - Millennial-Focused

Contemporary Approach:

• Social media integration for trade alerts
• Allows crypto news trading
• Discord community for collaboration
• YouTube education channel

Program Benefits:

• 80% profit split (90% available)
• $10K to $250K accounts
• 4% maximum daily loss
• No consistency rules
• Mobile-optimized platform

Pros:

• Strong online community
• Crypto-friendly policies
• Social trading features
• Young, dynamic company culture

Cons:

• Limited traditional asset coverage
• Smaller account sizes available

Best for: Younger traders and crypto enthusiasts

8. ElitePropsCapital - Institutional Grade

Professional Standards:

• Institutional-level risk management
• Allows professional news trading strategies
• Provides advanced analytics tools
• Supports algorithmic trading

Elite Features:

• Up to 95% profit split for top performers
• $100K to $2M funding levels
• Prime broker execution
• Dedicated account managers
• Custom trading solutions

Pros:

• Highest funding amounts
• Professional-grade infrastructure
• Excellent execution quality
• Personal support

Cons:

• Expensive evaluation process
• Strict qualification requirements

Best for: Professional traders and institutions

Comparison Table: News Trading Policies

| Firm | News Trading | Profit Split | Max Account | Daily Loss | Evaluation | |------|--------------|--------------|-------------|------------|------------| | E8Markets | Fully Allowed | 80-90% | $400K | 5% | 1-Step | | FundingTraders | 2-Min Restriction | 90% | $200K | 6% | 2-Step | | FunderPro | Most Allowed | 80-85% | $500K | 8% | 2-Step | | TradingFunds | AI-Monitored | 90% | $300K | 5% | Instant | | ApexTrader | Encouraged | 100% | $300K | 3% | 2-Step | | FlexTradingFund | No Restrictions | 85% | $500K | 7% | 1-Step | | ModernTraderFund | Crypto Included | 80-90% | $250K | 4% | 1-Step | | ElitePropsCapital | Professional | 95% | $2M | 5% | Custom |

Best News Trading Strategies for Prop Accounts

High-Impact Events to Target

Tier 1 (Highest Impact):

• Non-Farm Payrolls (NFP)
• Federal Reserve Interest Rate Decisions
• Consumer Price Index (CPI)
• Gross Domestic Product (GDP)
• European Central Bank Announcements

Tier 2 (Medium Impact):

• Retail Sales Data
• Manufacturing PMI
• Unemployment Claims
• Consumer Confidence
• Housing Market Data

Execution Strategies

Straddle Approach:

• Place buy and sell orders before release
• Cancel losing order after breakout
• Ride momentum for 15-30 minutes
• Use tight stops to protect capital

Fade Strategy:

• Wait for initial overreaction
• Enter counter-trend position
• Target mean reversion within 1-2 hours
• Higher win rate but smaller profits

Momentum Continuation:

• Enter after initial move confirms direction
• Lower risk but reduced profit potential
• Best for consistent profitability
• Easier to manage risk

Risk Management for News Trading

Position Sizing Guidelines

• Never risk more than 1% per news event
• Reduce position size during evaluation
• Use smaller lots during high-volatility releases
• Keep emergency stops wider than normal

Technical Considerations

• Ensure fast internet connection
• Use VPS for consistent execution
• Have backup broker account ready
• Practice with demo accounts first

Psychological Preparation

• Accept that some trades will fail
• Don't revenge trade after losses
• Stick to predetermined risk levels
• Keep detailed trading journal

Choosing the Right Firm for You

For Beginners:

• E8Markets: Simple rules, good support
• ModernTraderFund: Educational resources
• TradingFunds: User-friendly technology

For Experienced Traders:

• ApexTrader: Highest profit splits
• ElitePropsCapital: Professional features
• FlexTradingFund: Maximum freedom

For Scalpers:

• FundingTraders: Fast execution
• E8Markets: No minimum trading days
• FlexTradingFund: High leverage

Application and Evaluation Tips

Before Applying:

• Practice news trading on demo accounts
• Study each firm's specific rules
• Prepare adequate capital for fees
• Develop consistent strategy

During Evaluation:

• Focus on risk management over profits
• Document all news trades taken
• Avoid over-trading during quiet periods
• Maintain detailed trading records

After Funding:

• Start with smaller position sizes
• Gradually increase as confidence grows
• Build relationship with account managers
• Consider scaling to larger accounts

Conclusion

The prop trading industry's shift toward allowing news trading represents a maturation of the sector. Modern firms recognize that skilled traders can profit from volatility while maintaining proper risk management.

E8Markets leads for pure news trading freedom, while ApexTrader offers the highest profit splits. TradingFunds provides the best technology, and ElitePropsCapital serves institutional-level traders.

Success in news trading requires extensive practice, disciplined risk management, and deep understanding of market fundamentals. Choose a firm that aligns with your trading style and growth objectives.

The $20 billion prop trading industry continues evolving rapidly. Firms that embrace trader flexibility while maintaining professional standards will dominate the next generation of proprietary trading.