At PAX Market Funds, we understand that modern traders need flexibility, not restrictions. Whether you trade during high-impact news events or execute rapid-fire scalping trades, choosing the right prop firm is critical.
In this in-depth guide, you’ll discover:
- Which prop firms allow news trading and scalping
- What rules you must check before joining
- The pros and risks of these strategies
- How to choose the best firm for your trading style
What is News Trading in Forex?
News trading involves placing trades around major economic events such as:
- Non-Farm Payrolls (NFP)
- Federal Reserve (FOMC) announcements
- CPI (inflation data)
- GDP releases
These events create extreme volatility, offering massive profit opportunities within seconds.
However, many prop firms restrict this because:
- Spreads widen significantly
- Slippage increases
- Risk becomes unpredictable ()
What is Scalping in Prop Trading?
Scalping is a high-frequency trading strategy where traders:
- Open and close trades within seconds or minutes
- Target small price movements
- Execute multiple trades per day
Some advanced scalpers even hold trades for 1–5 seconds, depending on execution speed ()
Why Most Prop Firms Restrict These Strategies
Let’s be clear—prop firms are not against traders making money. They are against uncontrolled risk.
Reasons for Restrictions:
1. High Volatility Risk
News events can cause massive price spikes in seconds.
2. Execution Issues
Slippage and delayed execution can create losses for both trader and firm.
3. Risk Concentration
News trading produces “all-or-nothing” outcomes instead of consistent profits ()
4. Server Load & Trade Frequency
Scalping involves dozens of trades daily, which can strain systems.
Forex Prop Firms That Allow News Trading and Scalping
While many firms restrict these strategies, some modern prop firms are becoming more flexible.
1. Forex-Friendly Firms (Scalping + Flexible Rules)
- FundingPips – Known for MT4/MT5 access and tight spreads
- E8 Markets – Good execution and scalper-friendly environment
- FundedNext – Allows scalping with high profit splits
- FTMO – Supports scalping within structured rules
These firms offer:
- Fast execution
- Low spreads
- No strict minimum trade duration ()
2. Firms That Allow News Trading
- Funded Trading Plus – Encourages trading during news events
- Take Profit Trader – No strict news restrictions
- Tradeify – Allows trading through major economic releases
Some firms allow:
- Holding trades during news
- Opening positions without buffer restrictions
- Scalping news spikes ()
What to Check Before Joining Any Prop Firm
Not all “allowed” claims are equal. You must read the rules carefully.
1. News Trading Policy
Check if:
- Trading is banned before/after news
- Profits from news trades are allowed
- Positions can be held during events
2. Scalping Restrictions
Look for:
- Minimum trade duration (avoid if present)
- Trade frequency limits
- Restrictions on fast entries/exits
3. Execution Speed
Scalpers need:
- Sub-100ms execution
- Low slippage
- Reliable platform performance ()
4. Spread Conditions
Tight spreads are critical for scalping profitability.
5. Hidden Rules
Some firms say “scalping allowed” but:
- Cancel profits from fast trades
- Flag accounts for high-frequency activity
Advantages of News Trading and Scalping
1. High Profit Potential
Volatility creates fast opportunities.
2. Short Market Exposure
You’re not exposed to long-term risk.
3. Multiple Opportunities Daily
Especially for scalpers.
4. Works in All Market Conditions
Both strategies thrive in active markets.
Risks You Must Understand
1. Slippage During News
Prices can move faster than execution.
2. Spread Widening
Costs increase significantly during volatility.
3. Emotional Pressure
Fast decisions can lead to mistakes.
4. Rule Violations
Even small mistakes can lead to account loss.
Pro Tips for Success
1. Choose the Right Firm
Not all firms support your strategy equally.
2. Use Proper Risk Management
Risk less than 1% per trade.
3. Test Execution First
Use demo or small accounts to test speed.
4. Avoid Overtrading
Even scalpers need discipline.
5. Trade Selective News Events
Focus on high-impact, predictable events.
Why PAX Market Funds is Built for Modern Traders
At PAX Market Funds, we understand that trading is evolving.
What Makes Us Different:
- Flexible trading conditions
- Scalping-friendly environment
- Transparent rules
- Support for modern trading strategies
- Instant funding options
We believe traders should not be limited by outdated restrictions.