Disclosure: This page contains affiliate links. We may earn a commission if you sign up through our links — at no extra cost to you. It never affects our reviews or the public Trust Score.
Strategies That Get You Banned From Prop Firms |
Written by Renan Filho, Technology & AI specialist. Expiry dates and activation fees are always visible.
Quick Answer: Prop firms promise funding, but they also enforce strict rules. Break them, and you are out. Some traders lose accounts faster than they can withdraw. This article reveals the exact strategies that get you banned from FTMO, Apex, Topstep, and others. Avoid these mistakes if you want to keep your capital.
Key Facts for US Traders (2026)
| Market | Detail | Source |
|---|---|---|
| US indices | S&P 500, NASDAQ, Dow Jones | NYSE / NASDAQ |
| Regulator | CFTC (futures) / SEC (securities) | Official |
| Prop firm model | Funded evaluations with profit split 70-95% | Vendor terms |
| Verification | Updated regularly | PropFirmDiscountApp |
| Best deal today | Code DISCOUNTAPP — up to 90% off | Updated regularly |
Trading during news events with a news ban
FTMO and FundedNext ban trading 2 minutes before and after major news. Apex has a similar rule on its evaluation accounts. Topstep allows news but limits profit targets. If you open a position at 8:29 AM ET on CPI day, you risk instant termination. Many traders lose a $100K account this way. The rule exists to stop gamblers. Respect it or lose your fee. Check each firm's economic calendar before you click buy or sell.
Using a bot or copy trading without permission
True Forex Funds and The5ers require manual trading on evaluation. Automated strategies need pre-approval. Copying another trader's signals is also a violation. Apex tracks your order execution speed. If your entry matches a social platform's timestamp, you fail. One trader lost $15,000 in funded profits because he used a free signal service. The firms see this as cheating. They do not care if you make money. They want original decisions. Use your own analysis.
Holding positions over the weekend with open margin
E8 Markets and FTMO have strict weekend holding rules. You can hold if your margin is above a certain percentage. But if you leave a trade with less than 50% margin on Friday, you get a violation. Topstep forces you to close all positions by 3 PM CT on Friday. Apex allows weekend holds but reduces your trailing drawdown. Many traders wake up Monday to a banned account. The strategy to avoid: never risk more than 10% of your balance on a Friday. Close early or reduce size.
Making more than the daily loss limit in one trade
Daily loss limits are hard. For a 50K account, FTMO sets it at $2,000. Apex uses $2,500 for the same size. If you lose $2,100 in one position, you are banned, even if your overall balance is up. Topstep calculates daily loss from the day's starting balance. A single bad trade can wipe out a week of gains. The best strategy? Use a hard stop at 2% of your account. Never exceed that. It is not worth the risk. One trader lost a $100K funded account on a single crude oil trade. He made $8,000 the day before. Do not be him.
Trading the same instrument repeatedly during low liquidity
Some traders think they can scalp micro indices at 2 AM. They are wrong. Prop firms monitor your execution. If you open and close 50 trades in 10 minutes on a low-volume instrument, they flag you as a high-frequency gambler. FTMO and True Forex Funds have minimum holding times. Apex bans accounts that show latency arbitrage. The strategy to get banned is simple: trade during off-hours with no economic catalyst. Avoid that. Stick to liquid hours between 9:30 AM and 11:30 AM ET. Use a stop loss on every trade. That is the only way to pass.
Quick Comparison
| Firm | News Ban | Weekend Rule | Copy Trading |
|---|---|---|---|
| FTMO | 2 min before/after | Allowed with margin | Prohibited |
| Apex | No official ban | Allowed with reduced drawdown | Prohibited |
| Topstep | No ban but profit cap | Close by 3 PM CT | Prohibited |
| FundedNext | 2 min before/after | Allowed with margin | Prohibited |
| The5ers | No official ban | Allowed with margin | Requires approval |
| E8 Markets | No official ban | Allowed with margin | Prohibited |
Frequently Asked Questions
Can I trade earnings news with FTMO?
No, FTMO bans trading 2 minutes before and after any scheduled news. Earnings are on their list. Wait 5 minutes after the release.
Does Apex ban you for holding a trade overnight?
No, Apex allows overnight holds, but it reduces your trailing drawdown. You can still get banned if your daily loss exceeds the limit.
What is the most common reason for a prop firm ban?
Exceeding the daily loss limit. Most bans happen because traders do not set a stop loss or they increase position size after a loss.
Can I use a trading bot with Topstep?
Topstep prohibits fully automated bots on evaluation accounts. You can use manual tools, but any auto-entry gets you banned.
Is copy trading allowed on FundedNext?
No, FundedNext explicitly prohibits copy trading. Using a signal service or mirroring another trader's account is a violation.
Conclusion
Prop firms are not charities. They test your discipline. The strategies above are guaranteed ways to lose your fee and your funding. If you want to survive, respect daily loss limits, avoid news, and trade manually. Choose a firm that matches your style. For US traders, Apex and Topstep are solid options. Start small, follow the rules, and withdraw consistently. Do the opposite and you will be banned. Your choice.
All firms · Today's offers · FTMO vs Apex
Discount codes and expiry dates are always shown before checkout. See how we rank firms on our methodology page.
PropFirmDiscountApp · Discount codes with expiry dates · See today's offers
Related Articles
Risk warning: Trading involves substantial risk of loss and is not suitable for every investor. Past performance is not indicative of future results. Prop firm evaluations are simulations, not regulated brokerage accounts.