Prop firm EA rules compared: FTMO, FundedNext, The5ers and more (2026)
Most big prop firms allow expert advisors, but on very different terms. FTMO allows EAs within its trading rules. FundedNext allows third-party EAs only on smaller accounts with an add-on. The5ers and FundingPips want EAs you own, and Alpha Capital allows them only as risk tools. Nearly all ban high-frequency trading, latency arbitrage and identical trades across traders.
Running an EA on a prop firm challenge fails in one of two ways: the market breaks a drawdown limit, or the EA breaks a rule you didn’t know existed. This comparison covers the second. We read each firm’s own rules, FAQ and help pages on 6 November 2026 and set out the prop firm EA rules that matter: whether EAs are allowed, which strategies are banned, what happens around news and how the loss limits are measured.
Rules change often. Firms update their terms several times a year. Use this page to know what to look for, then confirm on the firm’s own page (linked below) before you buy a challenge.
Prop firm EA rules at a glance
| Firm (programme) | EAs allowed? | Third-party EAs | News rule on funded accounts | Daily / maximum loss |
|---|---|---|---|---|
| FTMO (2-step) | Yes | Allowed, but if others run the same EA a funded account can be refused | No order execution 2 min before to 2 min after restricted news (standard accounts) | 5% / 10% |
| FundedNext (Stellar 2-Step) | Under $50K only, with a paid EA add-on on MT4/MT5 | Allowed under $50K; EAs built to pass challenges are banned | Trades within 5 min of high-impact news keep only 40% of profit | 5% / 10% |
| The5ers (High Stakes) | Only your own software, with prior written approval | Prohibited | No orders 2 min before to 2 min after high-impact news | 5% / 10% |
| FundingPips (2-Step Standard) | Your own EA, if you can prove you own it | Only as a trade or risk manager | Profits from trades 5 min either side of restricted news are deducted | 5% / 10% |
| E8 Markets (E8 One, 1-step) | Yes, on E8 One, Pro and Signature | Allowed unless several users run the same trades | No opening or closing 5 min either side of high-impact news | 3% / 4% (default settings) |
| Alpha Capital (Alpha Pro) | Only pre-approved risk or trade-assistance EAs, MT5 only | Fully automated EAs prohibited | No opening or closing 5 min either side of listed news | 5% / 10% (Pro 10%) |
Checked on each firm’s own pages on 6 November 2026. E8 Markets now sells single-phase challenges only.
Firm by firm
FTMO
FTMO allows EAs and caps activity at 200 open orders and 2,000 positions a day. Its forbidden practices include exploiting price errors or feed delays, ultra-high-speed tools, gap trading around news or market closes, EAs that send more than 2,000 server requests a day, and opposite positions across connected accounts. It doesn’t name grid or martingale. The daily limit is 5% of initial capital, measured from the balance at midnight CE(S)T and breached on equity; the maximum loss is a static 10% of initial capital. Standard funded accounts can’t execute orders from 2 minutes before to 2 minutes after restricted news and must be flat before long market breaks such as weekends; evaluations and Swing accounts are exempt.
FundedNext
On Stellar 2-Step accounts under $50K, third-party EAs are allowed on MT4 and MT5 with a paid EA add-on; accounts of $50K and above must be traded fully manually, and EAs aren’t allowed on cTrader or Match-Trader. Each EA must run a distinct strategy, and EAs designed to pass challenges are banned. FundedNext explicitly bans grid trading, along with tick scalping, latency trading, arbitrage, hyperactivity, copy trading and hedging. The daily limit is 5% of the initial balance including floating losses, reset at midnight server time; the maximum loss is a fixed 10%.
The5ers
The5ers’ terms require automated software to be your own and approved in writing first; third-party EAs, EAs whose source code you don’t own and EAs that scalp at rollover are prohibited. High-frequency trading, bulk trading, bracketing news, tick scalping and coordinated or copied trading between different traders are banned, though copying between your own accounts is allowed. Orders can’t be executed from 2 minutes before to 2 minutes after high-impact news. High Stakes shows a 5% daily and 10% maximum loss on MT5.
FundingPips
FundingPips allows third-party EAs only as trade or risk managers. An EA that trades on its own must be yours, and you must be able to prove it with source code and version history; a compiled file on its own isn’t accepted. Banned practices include HFT, latency arbitrage, server spamming, gap trading, tick scalping and hedging. The daily limit is 5% of the higher of the day’s starting balance or equity, reset at midnight platform time, and the maximum loss is a static 10%. On Master accounts, profits from trades opened or closed within 5 minutes of restricted news are deducted unless the trade was opened at least 5 hours earlier.
E8 Markets
E8 allows any EA on E8 One, Pro and Signature as long as several users aren’t running the same trades or strategy. It bans hedging across accounts (even your own), HFT, defined as more than half your trades lasting under a minute, and all-or-nothing trading. E8 One defaults to a 3% daily limit from the day’s starting balance and a 4% maximum that trails the highest closed balance until it locks at the initial balance; both can be customised. Funded E8 One accounts can’t open or close trades 5 minutes either side of high-impact news.
Alpha Capital Group
Alpha Capital is the strictest: EAs are allowed only on MT5 and only as pre-approved risk-management or trade-assistance tools, and EAs that trade independently without human oversight are prohibited. A funded account can use an EA only if it was used during the evaluation. Latency trading, arbitrage, HFT, group trading and position spamming are banned, and average trade duration must be at least 2 minutes. On Alpha Pro 10%, the daily limit is 5% of balance and the maximum loss a static 10%.
Strategies almost every firm bans
- High-frequency trading and tick scalping: very short trades that exploit the firm’s simulated execution.
- Latency and price-feed arbitrage: trading on delays between price feeds.
- Identical trades across traders: the same off-the-shelf EA run by many customers looks like coordinated trading.
- Hedging across accounts: opposite positions on two accounts so one is guaranteed to pass.
- News bracketing and gap trading: orders placed to catch the jump at a release or a reopening.
What is usually fine: trend, breakout and swing EAs with a stop on every trade, sized for the loss limits, plus trade managers and equity guards. Grid and martingale EAs are risky on any challenge even where they aren’t banned; our martingale vs grid comparison shows why.
Daily loss limits: balance or equity?
The firms above measure the daily limit in different ways. FTMO takes the balance at midnight minus 5% and breaks the rule if equity, including open trades, falls below that level. FundingPips uses the higher of the day’s starting balance or equity, so an open profit at midnight raises the floor. E8 uses the day’s starting balance. Set your EA’s daily guard on the same basis as your firm, and a little below its limit, for example 4% when the limit is 5%. The prop firm drawdown calculator shows exactly how much you can still lose today under each method.
How to set up an EA for a prop firm challenge
- Read the current rules on the firm’s own site: EA policy, banned strategies, news and weekend rules, and the platforms where EAs are allowed.
- Confirm your EA is allowed: some firms accept only EAs you own, or only risk-management tools.
- Set a daily loss guard below the firm’s limit, on the same balance or equity basis.
- Add a news filter for funded accounts that restrict trading around releases.
- Check trade duration and weekends: minimum average holding times and weekend closing rules catch some EAs.
- Size for passing, not speed: lower risk per trade gives the EA room to recover. Work it out with the position size calculator.
- Rehearse on demo with the same leverage and symbols, on a VPS so it never disconnects.
Once you have picked a firm, see how to set up an EA for a prop firm challenge and how each firm measures its daily drawdown.
Prop firm EA FAQ
Can you use an EA on FTMO?
Yes. FTMO allows EAs within its trading rules, but if many traders run the same EA it may refuse a funded account, and EAs must stay under its order and server-request limits.
Which prop firms allow EAs?
Of the six we checked, FTMO and E8 Markets allow EAs most broadly. FundedNext allows them on accounts under $50K with an add-on, The5ers and FundingPips only when the EA is your own, and Alpha Capital only as risk-management tools.
Can I use the same EA on several prop firm accounts?
Check the firm’s copy-trading and hedging rules first. Several firms ban identical trades across different traders, and some, such as E8, ban hedging between accounts even when they are all yours.
Do prop firms allow grid or martingale EAs?
FundedNext bans grid trading outright. The other firms we checked don’t name grid or martingale in the pages we read, but their loss limits, duration rules and bans on all-or-nothing trading still make these strategies risky.
Will an EA pass a prop firm challenge for me?
No tool can promise that. An EA can follow your risk rules exactly; the market decides the rest.
Risk warning. Prop firm challenges are paid evaluations and most traders don’t pass. Trading on margin carries a high risk of loss. This page summarises published rules and is not legal or financial advice.
Sources, checked 6 November 2026: FTMO strategies, forbidden practices, news, objectives · FundedNext EAs, prohibited strategies, news · The5ers terms, prohibited practices, High Stakes · FundingPips conduct, 2-Step Standard · E8 Markets policies, E8 One · Alpha Capital EAs, risk limits