Introduction
FTMO’s policy on news trading depends on whether a trader is in evaluation or operating a funded account. Details vary by account stage and type, with explicit provisions governing market activity around scheduled economic announcements.
News Trading During Evaluation Phases
Both the FTMO Challenge and Verification stages allow unrestricted trading during all news releases. Traders may enter or exit positions without limitation around any economic events, including high-impact data announcements.
News Trading Rules on FTMO Account
After successfully completing evaluation, traders using a standard FTMO Account are subject to specific restrictions.
Targeted Instruments and Restricted Time Windows
A two-minute execution window is enforced for designated instruments tied to a major news release. During this period, traders may not open or close trades, nor have stop loss or take profit orders executed on the specified instruments. However, they may maintain positions that were opened before the restricted period.
Trading on Non-Targeted Instruments
Instruments not linked to the news event remain tradable. For example, during a U.S. payroll announcement, non-USD forex pairs such as EURGBP or AUDNZD can be traded despite restrictions on USD-based instruments.
Swing Account Exemption
The FTMO Swing Account variant imposes no restrictions around news releases. Traders using Swing accounts are free to trade targeted instruments at any time, including during restricted windows, and may also hold trades overnight or over weekends without limitation.
Enforcement of Policy
Violations of the ±2-minute news trading rule—such as order execution during restricted periods—are treated as contract breaches and may result in account termination or loss of funded status. Many funded traders elect to close affected positions before high-impact events or avoid trading restricted instruments entirely during these periods to stay compliant.
Market Volatility and Strategy Considerations
FTMO highlights the elevated risks inherent in news trading, including volatility spikes, slippage, and liquidity gaps. Even when permitted, such as for Swing account holders, these risks may undermine strategy performance if not properly managed.
Trading Strategy Implications
- Evaluation Phases: Traders can fully replicate backtested strategies that include trading around news events.
- Standard Funded Account: News-based execution must avoid targeted instruments within the restricted windows; strategies may need to adapt by shifting to non-targeted instruments or pausing trading.
- Swing Account: Compatible with news-based strategies, but users must manage risk associated with heightened event volatility and lower leverage limits.
Summary Table
| Phase / Account Type | News Trading Allowed | Execution Restriction on Targeted Instruments | Trading in Non-Targeted Instruments |
|---|---|---|---|
| Challenge & Verification | Yes | None | Yes |
| Standard Funded Account | Yes | ±2 minutes before/after release | Yes |
| FTMO Swing Funded Account | Yes | None | Yes |
Final Notes
FTMO permits trading during news events, with strict rules for funded standard accounts that restrict order activity around key announcements. Swing accounts offer full flexibility but come with different leverage and risk dynamics. Awareness of these rules helps traders align strategy design and execution with FTMO policy while managing event-driven volatility effectively.
