Short answer: Yes, news trading is allowed on most prop firms, including Fewpips, but there is usually a short protected window around high-impact ("red folder") releases where new trades are restricted. Outside that window you can trade the news normally. At Fewpips, the protected window is 5 minutes before and 5 minutes after the release. It restricts new entries only: open trades are not auto-closed, managing them through the release is your responsibility.
News trading is one of the most common questions new prop traders ask, and the confusion is fair. Some firms ban it outright, some allow it fully, and most sit in the middle with a rule about timing. This post explains why the rule exists, what a "red folder" event is, and how to stay on the right side of the line.
Why prop firms limit news trading
The restriction is not there to stop you from making money. It exists because the seconds around a major release behave differently from normal market conditions:
- Spreads widen. Liquidity dries up right before a big number, so the gap between buy and sell price can jump sharply.
- Slippage is severe. Your stop-loss or take-profit may fill far from where you set it because price moves in large steps.
- Prices can gap. The market can leap over your levels entirely, which makes risk hard to control.
- Feed abuse. Because prop challenges run in a simulated environment, some traders try to exploit tiny pricing delays during volatile moments. Firms block this to keep the challenge fair for everyone.
So the rule protects both sides. It stops a single lucky (or exploitative) news spike from turning into a payout the firm never intended to fund, and it protects you from a violent fill that blows past your loss limit.
What "red folder" news means
Economic calendars grade events by expected impact, usually with a color. Red-folder (or high-impact) events are the ones that move markets hard. Common examples:
- Non-Farm Payrolls (NFP) and other major jobs data
- Central bank interest rate decisions (Fed, ECB, BoE)
- Inflation prints (CPI, PPI)
- GDP releases and central bank press conferences
Lower-impact events, shown in orange or yellow, usually are not covered by the restriction. If you are unsure whether an event counts, treat anything red as covered until you confirm.
What is usually allowed vs restricted
Most firms, Fewpips included, restrict opening or closing trades within a set window around a red-folder release on the affected instrument. Here is the general pattern:
- Allowed: Holding a position you opened well before the window, trading pairs not tied to that release, and trading the news outside the protected minutes.
- Restricted: Opening a fresh trade seconds before the number drops to catch the spike, or closing right on the release to bank a gap.
The exact rule at Fewpips is here: the restriction applies across all instruments around every red-folder release on the economic calendar.
How to trade the news without breaking the rule
- Check the calendar every morning. Note the red-folder events for the day and the exact release times in your platform's timezone.
- Know your window. Once you confirm the Fewpips window, block those minutes off. Do not enter or exit during them on affected pairs.
- Enter early or wait it out. If you want a news position, open it before the window starts, or wait until the dust settles and the spread returns to normal.
- Respect your risk rules. News moves are exactly when traders blow a loss limit. Keep your position size sensible so a wide fill does not breach your account.
For a full picture of what else is off-limits, read our guide to prohibited trading, precisely defined. It pairs well with our stop-loss and take-profit requirements, which matter most during volatile releases.
Frequently Asked Questions
Can I hold a trade through the news on Fewpips?
Generally yes, if you opened it before the protected window. Firms restrict new entries and exits around the release, not positions you already hold. Confirm the exact behavior with support, since open positions are not auto-closed during the news window. Managing them through the release is the trader's responsibility can differ by firm.
What counts as high-impact news?
Red-folder events on an economic calendar: major jobs data (NFP), central bank rate decisions, inflation reports (CPI), and GDP. Orange or yellow events are usually lower impact and not covered.
Will I be breached just for trading near the news?
Trading near the news is fine as long as you stay outside the protected window on affected instruments. A violation is more likely to trigger a review than an automatic breach, but repeated or clearly exploitative news trades can put your account at risk. See what happens when an account is breached.
Does the news rule apply to Instant and challenge accounts the same way?
On most firms the prohibited-trading list is identical across account types. the same news policy applies across all account types, Instant and challenge alike.
The Fewpips take
News trading is not banned here, it is just fenced off during the riskiest seconds so the environment stays fair. Learn the window, respect it, and trade the rest of the session freely. Ready to put it into practice? Get Funded Now.
Fewpips accounts trade in a simulated environment with simulated funds. This article is educational information about how prop firm rules generally work and is not financial advice.
Related reading
- Are Trading Bots and EAs Allowed on Prop Firms?
- Is Copy Trading Allowed on Prop Firms?
- Can You Hold Trades Over the Weekend on a Prop Firm?
- What is a prop firm?
Have more questions? Check our FAQ or contact us.
