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Prohibited Trading Practices

Last updated on Jan 19, 2026

General Guidelines for Being Compliant

At all levels of the Trade4U program, there are certain behaviors that traders are strictly prohibited from engaging in. These policies exist to maintain the integrity of our educational evaluation program and ensure realistic market conditions in our simulated environment.

Why Does Trade4U Have Prohibited Conduct Policies?

Prohibited Conduct policies exist to:

  • Deter behaviors incompatible with long-term, sustainable success in real markets

  • Promote responsible and professional trading practices

  • Prevent circumvention of our trading rules and evaluation parameters

  • Ensure realistic order execution that mirrors actual market conditions

  • The Trade4U Challenge and Funded accounts are designed to evaluate real trading skills. We would be doing a disservice to our traders if we allowed them to pass evaluations using methods that would fail in live market conditions.

Potential Consequences of Prohibited Conduct

Depending on the severity of the infraction and the trader's history, consequences may include:

  • Warning notification

  • Deletion of affected trading days

  • Permanent account closure

  • Delay or denial of withdrawal requests

  • Forfeiture of all profits

  • Permanent ban from Trade4U services

Note: Prohibited Conduct violations may or may not result in reset fees, depending on the specific circumstances and severity of the violation.

Key Prohibited Activities

1. Automated and High-Frequency Trading

  • Using Expert Advisors (EAs), trading robots, or any automated trading systems

  • Employing artificial intelligence, ultra-high speed, or mass data entry systems

  • Implementing algorithmic or high-frequency trading strategies

  • Using any software that manipulates or provides unfair advantages

2. Coordinated Trading and Hedging

  • Coordinating trades between multiple accounts

  • Implementing opposite positions across accounts to hedge risk

  • Copy trading or signal sharing between accounts

  • Pooling risk across unconnected accounts

3. Market Manipulation and Gaming

  • Tick scalping without genuine market analysis

  • Account flipping (minimal trades just to meet day requirements)

  • Patterns indicating gambling behavior or martingale strategies

  • Trading strategies that cannot be replicated in real market conditions

  • One-sided directional betting (80%+ positions in single direction without analysis)

4. Position and Risk Violations

  • Holding positions overnight or during weekends

  • Trading within 5 minutes before/after high-impact news events

  • Holding positions within 2% of a product's price limit

  • Account stacking (aggressive trading to hit drawdown, then switching accounts)

For a complete list of prohibited practices and detailed explanations, please refer to the full Prohibited Conduct section in our Terms and Conditions.