The short answer
The rules that end most funded accounts by surprise are not the profit target or the drawdown. They are these:
- EA and copy-trading bans
- Weekend and overnight holding rules
- IP address, VPN and device rules
- Account sharing
- Maximum lot and exposure caps
- Hedging across accounts
- Trading the same strategy as many others (identical trades)
They are usually found in the terms, the FAQ or a separate “trading rules” page, sometimes in all three, with slightly different wording. Read all three before you pay, save a copy with the date, and fill in the printable checklist at the end of this page.
Why these rules exist
A prop firm earns most of its money from fees, and pays out a share of profits to traders who pass. Its rules try to stop strategies that pass by luck, scale or loopholes rather than skill: copying one winner across many accounts, gambling on a weekend gap, or two accounts trading opposite sides. Our page on why funded accounts get terminated explains how firms find these in reviews.
You don’t have to agree with every rule. But once you’ve paid, they apply to you.
1. EA and copy-trading bans
| What you do | What firms commonly say |
|---|---|
| Your own EA, written for your strategy | Allowed at some firms, banned at others |
| A bought or free EA that many people run | Often banned or restricted |
| Copying someone else’s trades or signals | Commonly banned |
| Copying between your own accounts | Allowed at some, banned at others |
| A trade manager (auto break-even, partial close) | Often allowed, but check |
Gold trap: a “set and forget” gold EA from a signal group. Hundreds of accounts place the same order at the same second. The firm can see that pattern. See our gold EA checklist and copy trading risks.
2. Weekend and overnight holding
Some accounts must be flat (no open trades) before the weekend, some before the daily close, and some have no limit. Gold is a weekend-gap market: on Monday it can open several dollars away from Friday’s close (gold’s Monday gaps).
Check:
- Weekend: allowed, banned, or only on some account types?
- Overnight: must positions be closed at the daily break?
- What happens if you forget: the firm closes them, or it’s a breach?
- Pending orders: do they count as “holding” over the weekend?
Know the session times in your own zone with the gold market hours tool.
3. IP address, VPN and device rules
Firms check where logins come from. Common rules:
- No VPN, or no VPN that changes country.
- No trading from restricted countries, even when travelling.
- VPS (a virtual server for EAs): allowed, banned, or allowed only from certain providers.
- One person per device: two different traders’ accounts on one phone or PC can look like account sharing.
Real-life trap: two friends who both trade gold use the same laptop or the same home Wi-Fi for their own accounts. To the firm, that can look like one person running two accounts. Ask the firm before it happens.
4. Account sharing
Your account is for you only. That usually means:
- No mentor, friend or “account manager” logs in, even “just to set a stop”.
- No sharing your login with a signal service.
- No buying or selling funded accounts.
- The KYC name must match the person trading.
Many traders find out at the first payout, when identity is checked. See payout denied.
5. Maximum lot and exposure caps
Firms cap size per trade, per symbol, or in total across open trades. On gold, size adds up fast: 1 lot = 100 oz, so every $1 move is $100 per lot.
Gold trap: a cap of, say, 2 lots on metals (example number). You open 0.75 lot, then add 0.75, then 0.75 more on the pullback. That’s 2.25 lots, over the cap, from three trades that each looked small. Our position size calculator helps you plan the total before you add.
Also check:
- Is the cap per trade or per total exposure?
- Do pending orders count?
- Is there a maximum number of open trades?
6. Hedging across accounts
Buying gold on one account and selling it on another, yours or someone else’s, at the same firm or at different firms. Banned almost everywhere, because one side always “passes”. Hedging within one account is a separate rule; check it separately.
7. Trading the same strategy as others
Trading the same idea as other people is normal. Thousands of traders buy gold at the same support. What firms flag is identical trades: same entry, same size, same second, across many accounts. That usually means a signal group, a shared EA, or one person running many accounts.
If you trade from a group’s signals, read the firm’s rule first. Our signal group red flags page covers the other reasons to be careful.
Smaller rules that still bite
- Inactivity: no trade for a set number of days can close the account.
- Minimum trade duration: some firms don’t count trades closed within seconds.
- Stop-loss required: some accounts must have a stop on every trade.
- News windows: see prop firm news trading rules.
- Gambling or max-risk rules: a maximum share of the drawdown on one trade.
- Rule changes: how and when the firm can change rules, and whether changes apply to accounts already bought.
The printable checklist
Print this, or copy it into a note. Fill it in before you buy, from the firm’s own terms, FAQ and rules page. Write the answer and where you found it. If you can’t find an answer, ask support in writing and save the reply.
- ☐ 1. EAs allowed? Which kind (own, bought, trade manager)? ________
- ☐ 2. Copy trading allowed? Between my own accounts? ________
- ☐ 3. Signals from a group allowed? ________
- ☐ 4. Weekend holding allowed on my account type? ________
- ☐ 5. Overnight holding allowed? What happens if I forget? ________
- ☐ 6. VPN allowed? VPS allowed? ________
- ☐ 7. Countries I can’t trade from (including when travelling): ________
- ☐ 8. Can anyone else log in, even to help? ________
- ☐ 9. Maximum lot size on gold, per trade and in total: ________
- ☐ 10. Do pending orders count toward the cap? ________
- ☐ 11. Hedging inside one account allowed? ________
- ☐ 12. Hedging across accounts: understood it’s banned ☐
- ☐ 13. News window rule (minutes before and after): ________
- ☐ 14. Maximum risk per trade or “gambling” rule: ________
- ☐ 15. Minimum trade duration: ________
- ☐ 16. Inactivity limit (days): ________
- ☐ 17. Stop-loss required on every trade? ________
- ☐ 18. Consistency rule for payouts: ________
- ☐ 19. Minimum trading days before a payout: ________
- ☐ 20. How rule changes are announced, and do they apply to my account? ________
- ☐ 21. Date I saved a copy of the terms: ________
Then run your numbers through the prop challenge calculator and track your limits with the drawdown tracker. The full scoring method is in how to choose a prop firm for gold.
Sources
- Rule categories are a generic summary of common prop-firm terms. No specific firm is described; every firm’s rules differ.
- The lot-cap example uses example numbers.
Educational content only, not financial or legal advice. We do not recommend any prop firm or evaluation. Trading gold with leverage carries a high risk of loss.
Frequently asked questions
Can I hold gold trades over the weekend on a funded account?
Some firms allow it, some ban it, and some allow it only on certain account types. Gold can gap at the Monday open, which is why firms restrict it. Check the holding rule for your exact account before Friday.
Can I use a VPN with a prop firm?
Many firms check login locations to spot account sharing and restricted countries, and some restrict VPNs or virtual servers. Using one can make your logins look like someone else’s. Read the firm’s rule on VPNs, VPS and devices first.
What is a maximum lot or exposure rule?
A cap on how big your positions can be, either per trade, per symbol or in total across open trades. On gold, several small positions in the same direction can add up past the cap without you noticing.
Can two traders use the same strategy at a prop firm?
Some firms flag accounts that place the same trades at the same time as other accounts, because it can mean copy trading, signal groups or one person running many accounts. Trading the same idea is normal; identical trades to the second can be flagged.
Where do I find these rules?
In the firm’s terms and conditions, its FAQ or help centre, and sometimes a separate trading-rules page. Read all three, save a dated copy, and ask support in writing about anything unclear.
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