Last Updated: March 17, 2026
When challenging a prop firm, are you solely focused on “achieving the profit target”? In fact, there are 7 prohibited items that are like “landmines”, and if you step on them unknowingly, you will be instantly disqualified. In the previous Episode 4, we learned about the mechanism of the irregular challenge, but this time we will thoroughly explain the “things you must not do” as a prerequisite.
Furthermore, we will also cover the “consistency rule” that many traders tend to overlook in detail. The consistency rule is a filter designed to eliminate “gamblers” and is designed so that only skilled players can pass through. By reading this article, you can minimize the risk of disqualification and focus on the challenge with peace of mind.
Operated by the prop firm information site “Kaitai Shinsho” / Official partner of Fintokei / Conducted over 40 giveaways / Participated in Dubai Expo 2025
- 7 prohibited items that can lead to instant disqualification in a prop firm and how to avoid them
- Reasons why news trading, weekend holding, and martingale are not allowed
- How far can EA (auto-trading) be used – the differences in company policies
- The true nature of the “consistency rule” and the definition of “gambling trading”
- Patterns where the restriction rule applies at Fintokei and how to deal with them
- Comparison table of prohibited items for Fintokei, FTMO, and FundedNext
- Actual penalties for violating the rules without knowing them
【Conclusion】Traders who don’t know the prohibited items will be disqualified even if they have skills
Teacher, isn’t it enough to just make a profit in a prop firm challenge?
That’s a big misconception. Even if you achieve the profit target, if you violate even one of the prohibited items, there are cases where you will be instantly disqualified. Knowing the rules is the shortest route to passing.
To put it bluntly, the main cause of disqualification from a prop firm is not “because your trading skills were poor”, but “because you didn’t know the prohibited items”.
Prop firms are a business model where they provide traders with capital and share the profits. In other words, the company wants to keep only “traders who can earn stably and reliably”. That’s why prohibited items and consistency rules are in place.
- News trading (trading around the release of economic indicators)
- Weekend holding (holding positions from Friday close to Monday open)
- Martingale (adding-on) (increasing the lot size after losses)
- Copy trading (following signal providers or automated copying)
- Hedging with multiple accounts (holding opposite positions on the same company)
- Using EA (auto-trading) outside the regulations (performing prohibited trades using EA)
- Violation of restrictions on specific currency pairs (exotic pairs, cryptocurrencies)
In addition to these 7 prohibited items, there is a “consistency rule” that acts as a filter. The consistency rule is a mechanism that checks whether the trader’s trading style is stable, and it is designed to eliminate gamblers.
This article will thoroughly explain all 7 prohibited items and the consistency rule, centered on Fintokei. Read to the end to ensure you don’t get disqualified due to “not knowing”.
Prohibited item ①: News trading – the “minefield” around economic indicators
Doesn’t the market move a lot during the employment report? Isn’t that a good opportunity?
In a personal account, it’s okay, but it’s a different story in a prop firm. Trading around economic indicators is likely to be judged as “gambling”.
Why is news trading prohibited?
During the release of US employment data or FOMC (Federal Open Market Committee) announcements, the market can move by tens of pips to over 100 pips in just a few seconds. Such rapid fluctuations render technical analysis largely ineffective. In other words, even the most skilled traders are at the “mercy of luck”.
From the prop firm’s perspective, those who have made big profits through indicator trading may have done so through “luck” rather than “skill”. It is unlikely that these traders can provide stable long-term profits if given a pro account.
That’s why many prop firms restrict or prohibit trading around news releases.
News trading rules by company
The treatment of news trading varies among prop firms.
- FTMO (based in Czech Republic): New positions can’t be opened or closed within 2 minutes before and after the release of major economic indicators. Violation results in a warning up to disqualification.
- Fintokei (based in Czech Republic): News trading itself is not explicitly prohibited, but placing high-lot trades in one direction around indicators may be judged as “gambling trading”.
- FundedNext (based in UAE): News trading is allowed with conditions. However, large-lot trades around indicators are risky.
- Check the economic calendar every morning: Confirm the red-marked (high impact) indicators on Forex Factory (https://www.forexfactory.com/calendar) or Myfxbook (https://www.myfxbook.com/forex-economic-calendar)
- Don’t trade 30 minutes before and after the release: Even if the official rule is “2 minutes”, have a 30-minute buffer and close your positions.
- Set alerts: Use the calendar function in MT4/MT5 or mobile apps to get notifications
What specific indicators are considered “important”?
The following economic indicators require attention from almost all prop firms.
| Indicator | Country | Frequency | Impact |
|---|---|---|---|
| US Non-Farm Payrolls (NFP) | USA | 1st Friday of each month | 🔴 Maximum |
| FOMC Interest Rate Decision | USA | 8 times per year | 🔴 Maximum |
| CPI (Consumer Price Index) | USA | Monthly | 🔴 Maximum |
| ECB Interest Rate Decision | Eurozone | 8 times per year | 🟠 High |
| BOJ Monetary Policy Meeting | Japan | 8 times per year | 🟠 High |
| GDP Flash Estimate | Various countries | Quarterly | 🟡 Medium to High |
If in doubt, the safest rule is “don’t trade that currency pair on days when there are red-marked economic indicators”.
Prohibited item ②: Weekend holding – a “gap opening” on Monday can result in instant disqualification
Sometimes I accidentally fall asleep with positions open on Friday night. Is that not allowed?
