At a glance
- FundedNext lists gambling behaviour, HFT, tick scalping, latency trading, grid trading, arbitrage, group hedging, account sharing and other practices as restricted or prohibited.
- FundingPips prohibits practices including latency arbitrage, tick scalping, server exploitation, opposite-account trading and third-party account management.
- FTMO says discretionary and algorithmic strategies can be used when they reflect legitimate market trading and do not breach its Forbidden Trading Practices.
- Never assume a rule is universal: check the exact firm's product, account stage, and current terms.
Common restriction categories
| Category | What firms may mean | What to check |
|---|---|---|
| Execution abuse | Latency arbitrage, stale-price exploitation, server errors, quote manipulation or server spamming | Whether the rule covers manual and automated execution, and what evidence the firm uses |
| High-frequency or tick scalping | Very high order rates, extremely short holds, or strategies exploiting tiny price changes | Minimum holding times, trade-frequency limits, and model-specific exceptions |
| Arbitrage and hedging | Cross-account, cross-firm or group positions designed to lock in a risk-free outcome | Whether own-account hedging is allowed and whether external accounts are included |
| Third-party trading | Account sharing, paid account management, signal copying or coordinated trading by different users | Who may access the account and whether own-account copying is allowed |
| Gambling-style risk | All-in positions, excessive leverage, repeated oversized trades or risk without a repeatable plan | Risk thresholds, review discretion, and whether the consequence is a warning, payout adjustment or termination |
Examples from official firm policies
FundedNext's September 22, 2026 help-centre article lists gambling behaviour, All-in-One trading, Quick Strike, high-frequency trading, copy trading across accounts, group hedging, arbitrage, tick scalping, grid trading, latency trading, account rolling, one-sided betting, hyperactivity, demo-server exploitation and account/device sharing among restricted practices. Its policy describes different consequences by behaviour and account stage.
FundingPips lists gap trading, high-frequency trading, server spamming, latency arbitrage, toxic trading flow, hedging, long-short arbitrage, reverse arbitrage, tick scalping, server-execution exploits, opposite-account trading and churning and burning as forbidden. It also limits third-party EAs and requires proof of ownership for fully automated personal EAs.
FTMO states that legitimate discretionary and algorithmic trading is allowed when it reflects proper risk management and real-market conditions. It separately identifies forbidden practices and can take action where activity is not consistent with genuine market participation.
Before you place the first trade
- Read the prohibited-strategy section and the general Terms & Conditions, not only the FAQ summary.
- Check whether the same rule applies during evaluation, funded trading, instant funding and payout review.
- Get written clarification before using a trade copier, VPS, third-party EA, signal provider or multi-account hedge.
- Keep evidence that an EA is yours if the firm requires proof of ownership.
- Save a dated copy or screenshot of the rules that applied when you purchased the account.
Consequences are not always the same
A rule breach may lead to a warning, trade-profit deduction, payout denial, account termination or a permanent ban. The firm's policy should explain the consequence, but some terms reserve discretion. Do not assume every flagged trade automatically causes closure—or that a warning will always be issued first.
PropCoupons summarises published rules and does not adjudicate individual disputes. If a firm alleges a breach, request the specific clause, trade IDs, timestamps, calculation method and appeal process in writing.
Frequently asked questions
Can a prop firm ban news trading?
Some firms restrict news trading, especially on funded accounts or around specified events. The rule and time window are product-specific; check the firm's current news policy.
Are Expert Advisors allowed?
It depends. FTMO permits legitimate algorithmic trading subject to its rules; FundingPips distinguishes personal EAs from third-party automation and requires proof of ownership for full automation.
Can I use a trade copier?
Only if the exact firm's policy permits your copier arrangement. Own-account copying, inbound external copying and copying from a funded account may be treated differently.
Official sources
Provider rules can change. Check the linked product terms and FAQs before purchasing; the official source takes precedence over this summary.
PropCoupons is an independent comparison and discount-listing website. This research is informational, not financial advice or a guarantee of payout. Product terms and availability may change.