FundedNext Futures is a trading platform offering futures-based accounts to evaluate traders’ skills among the best futures prop firms. To maintain fairness and compliance, the platform enforces strict rules on what instruments and strategies can be traded. Here’s what you need to know:
- Prohibited Instruments:
- Spot forex pairs (e.g., EURUSD), cryptocurrencies (e.g., BTCUSD), and commodities (e.g., XAUUSD) are not allowed.
- CFD indices (e.g., SPX500) and spot energy contracts (e.g., USOUSD) are also banned.
- Trading near CME price limits (within 2%) is prohibited.
- Allowed Instruments:
- CME-aligned futures (e.g., E-mini contracts like ES, NQ, YM) and commodities (e.g., GC, CL) are permitted.
- Micro E-mini contracts and currency futures (e.g., 6E, 6B) are also supported.
- Prohibited Strategies:
- High-Frequency Trading (HFT), tick scalping, grid trading, latency arbitrage, and market manipulation tactics are banned.
- Cross-account hedging and strategy inconsistencies are not allowed.
- Penalties:
- Violations can lead to warnings, profit reductions, or account termination.
To avoid penalties, focus on CME-listed futures, follow risk management rules, and ensure your strategies align with platform guidelines.
FundedNext Futures Trading Rules: Prohibited vs Allowed Instruments and Strategies
Prohibited Instruments on FundedNext Futures
Here’s a closer look at the instruments you cannot trade on FundedNext Futures and the ones that are allowed.
Non-Futures Contracts That Are Not Allowed
FundedNext Futures strictly deals with standardized futures contracts from exchanges like CME, COMEX, CBOT, and NYMEX. This means you cannot trade spot Forex pairs (e.g., EURUSD, GBPUSD, USDJPY), spot cryptocurrencies (e.g., BTCUSD, ETHUSD, DOGUSD), or spot commodities such as XAUUSD (gold) and XAGUSD (silver). These instruments are excluded because the platform evaluates traders based on exchange-traded contracts, not over-the-counter assets. Trading any non-futures contracts leads to immediate compliance violations.
Restricted Indices and Commodities
While equity index futures are permitted, their CFD counterparts are not. This means you’re prohibited from trading CFD versions of indices like SPX500, NDX100, US30, GER30, or HK50. Similarly, spot energy contracts such as USOUSD and UKOUSD are off-limits.
Another important restriction involves trading near CME price limits. FundedNext Futures bans trading within 2% of these limits to avoid risks tied to market instability and liquidity concerns.
"Trading within 2% of the CME price limit increases risk and may cause liquidity issues; therefore, trading in this zone is prohibited." – FundedNext Futures
Instead, the platform only allows specific CME-aligned futures contracts, a policy often highlighted when comparing FundedNext vs FundingTicks.
Futures Contracts You Can Trade
FundedNext Futures supports a variety of CME-aligned futures across asset classes. For equity indices, traders can access E-mini futures like ES (E-mini S&P 500), NQ (E-mini Nasdaq-100), YM (E-mini Dow), and RTY (Russell 2000). Micro E-mini contracts – such as MES, MNQ, MYM, and M2K – are also available.
Currency futures include options like 6E (EUR), 6B (GBP), 6A (AUD), and 6J (JPY). For commodities, you can trade GC (gold), SI (silver), CL (crude oil), and NG (natural gas). Agricultural futures like ZC (corn), ZS (soybeans), and ZW (wheat) are also permitted.
To see the complete list of available instruments, check the Market Watch section in your MT4/MT5 platform. Keep in mind that contract limits depend on your account size. For instance:
- A $25,000 account allows up to 2 mini contracts or 20 micro contracts.
- A $100,000 account permits up to 5 mini contracts or 50 micro contracts.
These rules are in place to protect accounts and ensure a fair evaluation process.
sbb-itb-46ae61d
Prohibited Trading Strategies
FundedNext Futures imposes strict rules on trading strategies to ensure fairness and prevent actions that could exploit their systems or undermine the evaluation process.
Banned Strategies and Their Justifications
High-Frequency Trading (HFT) is at the top of the restricted list. This automated approach executes hundreds or even thousands of trades within seconds, which can overwhelm servers and cause technical issues. FundedNext flags accounts as "hyperactive" if they hit 200 trades or send 2,000 server messages in a single day. Accounts generating 15,000 messages are forcibly disabled.
Tick scalping and micro-scalping, where trades are opened and closed within seconds to capture tiny price fluctuations, are also banned. FundedNext views these as manipulative tactics rather than demonstrations of trading skill. Similarly, grid trading, which involves placing numerous buy and sell orders at preset intervals, is prohibited. This strategy can create artificial market activity and lead to significant losses during volatile market swings.
Latency arbitrage is another forbidden practice. It takes advantage of delays between different platforms or data feeds, relying on technical loopholes instead of genuine trading expertise. Additionally, market manipulation tactics like spoofing (placing fake orders to mislead traders before canceling them) and layering (flooding the order book with false interest) are strictly off-limits.
Account rolling – the act of purchasing multiple challenge accounts and taking reckless, oversized positions in hopes of passing one – violates FundedNext’s risk management principles. These rules are designed to maintain the integrity of the trading environment and ensure evaluations are based on skill, not shortcuts. These restrictions tie into equally stringent hedging rules, which further promote fairness.
Hedging Rules and Restrictions
FundedNext enforces specific hedging regulations to prevent unfair practices. While intra-account hedging – holding both buy and sell positions on the same instrument within a single account – is allowed, cross-account hedging is not. You cannot buy an asset in one account while shorting it in another, even if both accounts belong to you.
Reverse hedging, where multiple accounts are used to guarantee profits regardless of market direction, is strictly prohibited as it manipulates the reward structure. Similarly, correlated hedging – taking opposing positions in assets with linked price movements, like buying E-mini S&P 500 futures while shorting E-mini Dow futures – is also banned.
If you copy trades between accounts, all accounts must be registered under your name, and your combined capital cannot exceed $300,000. Copying trades from signal services, other traders, or coordinated groups is forbidden, as FundedNext evaluates individual trading skills, not collective efforts.
Lastly, strategy consistency is non-negotiable. Switching from an automated trading system during the evaluation phase to manual trading after being funded – or vice versa – is considered a violation. Your trading approach must remain consistent to demonstrate sustainable skills.
How FundedNext Futures Enforces Compliance
FundedNext uses real-time monitoring to keep a close eye on every trading action, ensuring traders stay within the platform’s compliance guidelines.
How Violations Are Detected
The platform relies on real-time metric tracking to oversee critical account parameters like profit targets, maximum drawdowns, and daily loss limits. A key focus is on detecting "hyperactivity", which is flagged if an account generates over 2,000 server messages or executes more than 200 trades in a single day. As FundedNext explains:
"The industry defines an account as hyperactive if it hits or surpasses 200 trades or 2,000 server messages in a single day."
Every action – whether it’s an order modification, stop-loss adjustment, or take-profit change – adds to this daily total. Accounts generating 15,000 messages in a single day are automatically disabled to protect platform functionality.
Depth of Market (DOM) monitoring plays a critical role in identifying manipulative behaviors like spoofing, layering, and order spam. Additionally, the platform tracks IP addresses to prevent account sharing and unauthorized copy trading, with strict rules against sharing devices among traders. FundedNext also flags trades executed near CME price limits (within 2%) due to heightened liquidity risks.
Behavioral risk systems are in place to spot "gambling-style" trading tendencies. Examples include losing trades that far outweigh winning ones or margin usage that exceeds 70%. In contrast, professional traders typically keep margin usage between 20%–30% and limit risk to no more than 1% of their account balance per trade.
These monitoring measures directly guide the platform’s penalty and corrective actions.
Penalties for Breaking the Rules
FundedNext applies a tiered penalty system based on the severity and recurrence of violations:
| Violation Stage | Consequence |
|---|---|
| 1st Violation | Formal warning along with increased monitoring of trading activity |
| 2nd Violation | Performance Reward ratio reduced to 50/50 for future payouts |
| 3rd Violation | Account termination and ineligibility for future allocations |
| Extreme Abuse | Immediate account suspension or permanent ban without prior notice |
For traders engaging in high-risk behavior, FundedNext may place them in the Disciplined Trader Program. This program limits cumulative allocation to $50,000, caps risk per trade at 1%, and enforces mandatory stop-loss orders. Refusing to accept these terms results in a pause on all active accounts. A second violation within the program reduces the profit split to 50/50, while a third leads to account termination.
Serious infractions, such as arbitrage, high-frequency trading, or account sharing, result in immediate termination without warning. Additionally, any profits gained from violating platform rules – such as exploiting system errors or engaging in gambling-like behavior – can be deducted. The Trading Ethics Team reviews flagged accounts, and standard allocation limits are only restored after successfully completing the corrective program.
How to Avoid Prohibited Instruments
To ensure compliance with FundedNext Futures’ rules, traders need to verify instrument eligibility before placing trades. Regularly checking trading activity and staying informed about allowed instruments can help avoid penalties and keep accounts in good standing.
Check the Official Instrument List
The simplest way to confirm which instruments are permitted is by using the Market Watch feature on your trading platform. On MT4 or MT5, right-click on ‘Market Watch’ and select ‘Show All’ to display the full list of enabled instruments available for trading. This list reflects the instruments currently approved by FundedNext and should be reviewed regularly – especially before trading a new contract or after any platform updates.
For additional clarity, consult the "Prohibited Trading Strategy" and "Allowed Instruments" articles in the FundedNext Help Center. These resources are regularly updated to reflect any changes in trading rules. Focus your trades on approved CME futures and stick to consistent strategies to ensure compliance.
Trade Only CME Futures with Consistent Strategies
Stick to CME-listed, front-month contracts, as these offer the best liquidity. It’s crucial to understand the standardized futures code structure. Each contract includes a Root Instrument Code, a Month Code, and a Year Code. For example, "GCM5" refers to Gold Futures expiring in June 2025, while "MGCM5" represents the micro version of the same contract. Using these codes correctly is a key part of maintaining a compliant strategy.
Avoid trading during low-liquidity periods, such as the transition between U.S. and Asian sessions. These "dead zones" are often flagged for potential manipulation risks. A disciplined approach to timing and strategy helps reinforce compliance with trading rules.
Use Compliance Monitoring Tools
Once you’ve verified your instruments and established a consistent strategy, take advantage of compliance tools to stay on track. Approved copy trading platforms for futures, like Tradovate‘s feature or NinjaTrader‘s Replikanto, can be used across accounts registered under the same name.
To adhere to position size limits, refer to the contract equivalence ratios: 1:5 for Rapid accounts and 1:10 for Legacy accounts when mixing e-mini and micro e-mini contracts. Exceeding these limits can lead to profit deductions or even account termination.
For more tips on staying compliant and improving your trading performance, check out the FundedNext Futures review page on DamnPropFirms.
Conclusion
Knowing the prohibited instruments and trading strategies on FundedNext Futures is essential for protecting your account and achieving long-term success. The firm’s rules are designed to assess traders’ skills and consistency, rather than rewarding short-term luck or exploiting simulated market scenarios. Tactics like spoofing, layering, latency arbitrage, and excessive margin use are strictly prohibited as they don’t reflect genuine trading expertise.
To stay compliant, focus on trading CME-listed contracts, avoid trades within 2% of CME price limits, and follow strict risk management guidelines. Professional traders typically risk no more than 1% per trade, keep margin usage between 20% and 30%, and ensure they don’t exceed 200 trades or 2,000 server messages daily. These practices promote a disciplined and sustainable trading environment.
"Rules aren’t punishments. They’re safety nets that teach discipline." – FundedNext
Violating these rules can result in serious consequences, ranging from formal warnings and reduced leverage to profit deductions and even permanent account termination. Copy trading is permitted only between accounts registered under your name, while using external signals or copying others’ trades leads to an immediate ban.
For more insights, check out DamnPropFirms, where you can compare firms like Apex Trader Funding, Take Profit Trader, and Topstep. The site features verified reviews, a Consistency Rule Calculator, and a Discord community with over 3,000 traders to help you stay updated as rules continue to evolve.
FAQs
Why can’t I trade spot forex pairs or cryptocurrencies on FundedNext Futures accounts?
FundedNext Futures does not permit spot forex pairs and cryptocurrencies on its Futures accounts. The reason? These instruments often lend themselves to trading strategies that could take advantage of simulated market conditions or manipulate trade execution. This includes methods like high-frequency trading or other exploitative tactics that might compromise fairness.
The platform is committed to maintaining a fair and transparent trading environment. By enforcing these rules, FundedNext Futures ensures that all traders operate on equal footing, safeguarding the system’s integrity.
What happens if I use prohibited trading strategies on FundedNext Futures?
Using banned trading strategies on FundedNext Futures can lead to serious penalties, including account suspension, loss of rewards, or even permanent bans. The platform strictly prohibits practices such as gambling behavior, arbitrage, high-frequency trading, grid trading, latency trading, and group or copy trading. These methods violate the platform’s rules and undermine fair trading practices.
FundedNext emphasizes the importance of maintaining a disciplined and responsible trading environment. Breaking these rules not only breaches the terms of service but also puts your account and future opportunities at risk. To stay compliant, make sure you follow their guidelines and focus on ethical trading approaches.
What trading strategies are prohibited on FundedNext Futures, and how can I ensure compliance?
To stick to FundedNext Futures’ rules, you need to steer clear of certain trading strategies. Practices like high-frequency trading, arbitrage, scalping, grid trading, latency trading, or any actions that take advantage of platform errors are strictly off-limits. Violating these rules could lead to account penalties.
When it comes to copy trading, it’s only permitted under specific conditions within your own FundedNext accounts. For example, you must stay within a combined capital limit of $300,000 and designate a master account. It’s also essential to respect other key rules, such as daily loss limits, restrictions on overnight and weekend trading, and profit targets. These measures are in place to promote responsible and consistent trading habits.
By staying informed about FundedNext’s policies, managing your risks wisely, and adhering to these rules, you can align your trading approach with their standards and work toward long-term success.
