News Trading 2.0: How to Trade CPI & NFP Without Getting Banned (2026)
Trade-Wise Staff
Editor
1. The 'Bracket' Strategy Explained
Don't guess the direction.
- Identify the consolidation range 5 minutes before NFP.
- Place a Buy Stop 5 pips above the high.
- Place a Sell Stop 5 pips below the low.
- Set a Take Profit of 1:3 Risk/Reward.
The market momentum will trigger one side and usually rush to your target.
2. Why Firms Ban This
Prop firms categorize this as "gambling" or "tick scalping". If you make 10% in 10 seconds, they often flag your account for review. You need a firm that explicitly states "News Trading Allowed" in their FAQ.
3. The Slippage Reality Check
If you use a basic broker, a "Buy Stop" at 1.0500 might get filled at 1.0520. That is 20 pips of slippage. You are already in a loss before the trade starts.
Solution: You need a firm with institutional-grade liquidity providers (LPs).
Recommendation: Funding Pips
Based on our 2026 liquidity tests, Funding Pips has shown some of the lowest slippage on Gold (XAUUSD) and EURUSD during news events. Unlike others, they allow news trading on their evaluation accounts (check specific rules for funded stage).
Don't Guess - Verify
Not all firms are equal. Some allow news trading only on "Swing" accounts, while banning it on "Scalping" accounts.
Check our Prop Trading Comparison Table to filter specifically for firms that allow News Trading and see live spread data. Don't risk your account fees on a firm that will ban you for winning too fast.
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