Prop Firm Scalping & News-Trading Rules at a Glance: A Thorough Comparison of 18 Firms
โ ๏ธ ATFunded announced a service suspension on June 8, 2026 (no new challenge purchases). References to ATFunded in this article are a record of its rules before the suspension. For the background and refund/payout handling, see the summary article.
๐ข Advertising / affiliate disclosure: This article contains prop-memo.com affiliate links (marked ๐, for Fintokei / Funded7). Anyone who purchases a challenge through these links receives unlimited free use of Hosono P's semi-discretionary EA, "ELDRA," as a gift. See Hosono P's note article for details.
โ Prop firm rules change frequently. Always confirm the latest, accurate rules on each firm's official site. (Last updated: May 12, 2026.)
A lot of people really do get disqualified over scalping and news
Two disqualification patterns stand out in the prop-memo.com database:
- A stop-loss/take-profit gets hit during a news release, triggering a news-trading violation and account suspension
- Falling under the scalping hold-time minimum, triggering a tick-scalping ban violation
Both of these are entirely avoidable if you just read the rules, and yet they keep happening. To help prevent them, this article thoroughly compares the scalping and news-trading rules across 18 firms.
3 typical disqualification patterns
Pattern 1: A hard breach from a position held into NFP
- Open a long at 22:25 on Friday
- 22:30 NFP release โ price gaps 100 pips in an instant
- Stop-loss triggers right after โ FTMO rules it a "news-trading violation" โ hard breach (account closed)
You never meant to target the news at all, but you still got caught by the ยฑ2-minute rule.
Pattern 2: A scalping EA making 10-second-or-shorter trades
- An automated EA repeatedly scalps in 5โ15 second bursts
- Fintokei: hits the 15-second minimum โ warning โ keep it up and the account is suspended
- ATFunded: tick scalping is fully banned โ instant disqualification
Pattern 3: 50% of a day's profit comes from scalping
- On plans like Fintokei's SwiftTrader, most of the profit is built from sub-1-minute scalps
- Ruled "excessively scalp-dependent", resulting in a delayed or denied payout
Scalping hold-time restrictions across 18 firms
Here's the "minimum hold time" for each firm.
| Firm | Minimum hold time | Notes |
|---|---|---|
| Fintokei ๐ | 15 seconds | Below this: warning โ suspension |
| Fundora | 20 seconds | On the strict side |
| FundedNext | 3 seconds | The most lenient in the industry |
| Funded7 ๐ | Not specified | Within common sense |
| The5ers | Not specified | โ |
| FTMO | Not specified | Within common sense |
| FundingPips | Not specified | Zero account has separate rules |
| Alpha Capital | Not specified | โ |
| E8 Markets | Not specified | โ |
| TradingCult | Not specified | โ |
| ATFunded | Tick scalping fully banned | The strictest of all |
| Hantec Trader | - | Applies if net profit from trades closed under 3 minutes is 30%+ of total profit (discretionary adjustment/removal of profit, or account suspension) |
| ThinkCapital | Not specified | โ |
| PipFarm | Not specified | Mainly cTrader |
| BlueberryFunded | Not specified | โ |
| FundedHive | Not specified | โ |
| Lark Funding | Not specified | โ |
| FundedElite | Needs confirmation | โ |
If scalping is your focus, the main options are FundedNext (3 seconds) or Fintokei (15 seconds). For manual scalping, Fintokei works fine in practice. If you want to run an HFT/tick EA, note that FundedNext's September 9, 2026 revision banned EAs entirely on accounts of $50,000 or more, so you're now limited to MT4/MT5 accounts of $25K or less (added September 9, 2026).
News-trading restrictions across 18 firms
Here's the restricted window around news releases and how severe the penalty is for a violation.
| Firm | Restricted window | Penalty for violation | Penalty type |
|---|---|---|---|
| Fintokei ๐ | No restriction | โ | Lenient |
| Funded7 ๐ | No restriction | โ | Lenient |
| Fundora | No restriction | (No slippage compensation) | Lenient |
| Lark Funding | No restriction | โ | Lenient |
| FundingPips | Legacy accounts unrestricted (except Zero). New policy applies to evaluation accounts created on/after June 27, 2026 | Banned on Zero accounts | Needs confirmation |
| Alpha Capital | Depends on plan | ยฑ5-minute restriction on some plans | Medium |
| The5ers | ยฑ2 minutes | Affected profit is deducted (soft) | Soft |
| FTMO | ยฑ2 minutes | Risk of account closure (hard) | Hard |
| E8 Markets | ยฑ5 minutes (E8 One's Performance stage only) | Trading restriction | Medium |
| Hantec Trader | ยฑ3 minutes, Funded stage only | No restriction during evaluation. On Funded accounts, no opening or closing within ยฑ3 minutes of a major indicator (Forex Factory red-flag) | Soft |
| ATFunded | ยฑ5 minutes | Breach on the 3rd offense (tiered) | Tiered |
| FundedElite | Needs confirmation | - | - |
| FundedNext | - | Needs confirmation | - |
| ThinkCapital | - | Needs confirmation | - |
| TradingCult | ยฑ5-minute buffer | Changed from 1 to 5 minutes in 2026 (reports of retroactive application โ needs official confirmation) | Medium |
| PipFarm | - | Needs confirmation | - |
| BlueberryFunded | - | Needs confirmation | - |
| FundedHive | - | Needs confirmation | - |
If you trade the news, Fintokei / Funded7 / Fundora are the reliable picks. Be especially careful with FTMO's Standard account (hard breach).
Hard breach vs. soft breach
Hard breach (account closure)
- FTMO's news-trading violation falls into this category
- A single violation means instant account suspension โ you start over from zero
- The cost and time of re-purchasing is wasted
Soft breach (profit confiscated / position closed)
- The5ers and Hantec's news violations (note: Hantec applies only to Funded accounts โ no news restriction during the evaluation phase)
- The affected trade's profit is deducted, or the position is force-closed
- The account continues โ you shake it off and keep going
Tiered (warning โ escalating breach)
- ATFunded's news violation
- 1st offense: warning, profit deducted
- 2nd offense: warning
- 3rd offense: breach (account suspended)
If you choose a firm on the hard-breach side, you need to keep close track of the NFP, FOMC, and major economic indicator calendar.
Strategy for NFP/FOMC days
Strategy A: Go fully flat (most recommended)
Close all positions from 30 minutes before the release until 1 hour after. Even if the rule itself is only ยฑ2 minutes, sudden market moves can cause slippage or unexpected fills that risk a rule violation regardless. Take a 3x safety margin and go fully flat.
Strategy B: Enter after the release (advanced)
Enter 15โ30 minutes after the release. Because the initial whipsaw is risky in a scalping sense, wait for a range to form and target the breakout instead. This strategy also isn't recommended at hard-breach firms.
Strategy C: Position sizing for firms that allow news trading
Even at a firm that allows news trading (like Fintokei):
- Scale down to 1/3 of your normal lot size
- Set stops at 2x the normal distance
- Avoid holding multiple positions at once
Major economic indicator calendar (reference)
Here are the indicators that move the market significantly on a monthly or irregular basis. Times shown are Japan Standard Time:
| Indicator | Frequency | Time (JST) |
|---|---|---|
| US Non-Farm Payrolls (NFP) | 1st Friday of every month | 22:30 (summer) / 23:30 (winter) |
| FOMC statement | 8 times a year | 03:00โ04:00 the next day (decision) / from 03:30 (Powell press conference) |
| US CPI | Mid-month | 22:30 (summer) / 23:30 (winter) |
| ECB policy rate | 2nd Thursday of every month | 21:15 (summer) / 22:15 (winter) |
| BOJ monetary policy meeting | 8 times a year | Around 12:00 |
Check exact dates monthly on a calendar such as Forex Factory.
Top 5 firms for scalping and news trading
Ranked overall by this article's criteria (lenient scalping restrictions + news trading allowed):
1. Fintokei ๐
- Scalping: 15-second minimum (fine in practice)
- News: fully allowed
- Profit split: up to 100%
- Overall: most recommended
2. Funded7 ๐
- Scalping: no stated restriction
- News: fully allowed
- Japanese-language UI
- Overall: on par with Fintokei
3. Fundora
- Scalping: 20-second minimum (slightly strict)
- News: fully allowed (but no slippage compensation)
- Domestic Japanese bank withdrawal
- Overall: the top pick if you want JPY-denominated
4. Lark Funding
- News: fully allowed
- EA trading allowed
- Has an unusual 17:00 EST reset โ check the implementation details
5. FundingPips
- News trading allowed on all plans except Zero (note: evaluation accounts created on or after June 27, 2026 are subject to a new news-trading/profit-concentration policy โ check the latest terms)
- Cheapest in the industry
- English-language UI only
Conversely, avoid FTMO Standard (hard breach on news) and ATFunded (ยฑ5 minutes) if you can. Making either of these your primary firm means accepting the stress of managing the indicator calendar.
Related tools on prop-memo.com
- ๐ Compare & search plans โ filter by news trading and scalping support
- ๐ Stats & payout track record โ pass-rate data by trading style
- ๐ค EA Tracker (MT4/MT5) โ automatic detection of hold time and news windows
- Related article: Prop firm rules-leniency ranking
If scalping and news trading are your priority, go with Fintokei ๐ or Funded7 ๐ without hesitation. Spending your time on trading instead of fighting the rules is 100x more rational.
Written by
Hosono P | the prop firm strategist
I buy challenges with my own money and record everything through to the payout. Recorded payouts: ยฅ6.1M in total from Fintokei, Fundora and Funded7, plus $4,776 from The5ers (as of September 2026). Author of the semi-discretionary EA "ELDRA".