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Prop Firm Trading

What Prop Firms Allow HFT? [2026 Guide]

What Prop Firms Allow HFT? [2026 Guide]

Introduction

Most prop firms restrict or ban high-frequency trading. The rapid-fire order execution strains their infrastructure and creates risk management challenges.

But some firms welcome HFT strategies. Here's what you need to know.

What Counts as HFT at Prop Firms?

For prop firms, HFT typically means:

  • Holding trades for seconds to minutes
  • Using automated systems (EAs/bots)
  • Placing many trades per day (50+)
  • Requiring fast execution speeds

Why Most Firms Restrict HFT

  • Liquidity provider issues: Rapid-fire orders may get rejected
  • Risk management: Bots can lose money faster than humans intervene
  • Latency arbitrage: Exploiting price delays is universally banned
  • Infrastructure costs: Low-latency systems are expensive

Prop Firms That Allow HFT

1. FunderPro

  • No minimum hold time
  • EAs and algorithms permitted
  • No trade frequency limits

2. FTUK (Funded Trading UK)

  • Automated trading allowed
  • No restrictions on trade frequency
  • Quick execution infrastructure

3. Bulenox (Futures)

  • No minimum hold time
  • Algorithmic trading permitted
  • Futures-focused platform

4. The5ers

  • EAs permitted
  • No strict hold time requirements
  • Scalping allowed

5. FTMO

  • Expert Advisors allowed
  • No minimum hold time
  • Must be your own strategy

Key Rules to Check

  • Minimum Hold Time: Some require 1-2 minutes minimum
  • Trade Frequency Limits: "Maximum 50 trades per day" restrictions
  • EA Policies: "EAs allowed" doesn't always mean HFT allowed
  • Latency Arbitrage: Almost universally banned
  • Tick Scalping: 1-2 pip targets often prohibited

HFT Comparison Table

FirmMin HoldEAs AllowedFrequency LimitBest For
FunderProNoneYesNonePure HFT
FTUKNoneYesNoneUK traders
BulenoxNoneYesNoneFutures HFT
The5ersMinimalYesSoft limitsAlgo scalping
FTMONoneYesNoneEA trading

Setting Up for HFT Success

  1. Use a VPS: Minimize latency with servers near your broker
  2. Test thoroughly: Run on demo for 2-4 weeks minimum
  3. Start small: HFT can blow accounts quickly
  4. Monitor actively: Don't set and forget
  5. Have kill switches: Automatic stops for daily loss limits

Conclusion

True institutional-grade HFT doesn't work at prop firms due to infrastructure limitations. But algorithmic scalping and fast execution strategies can work if you choose the right firm and verify rules before trading.


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