If you’ve ever joined (or thought about joining) a prop firm, you’ve probably noticed something: they absolutely love when traders stick to the majors. And for good reason—major currency pairs are liquid, predictable (well, as predictable as forex gets), and usually come with tighter spreads.
But just because you’re switching majors doesn’t necessarily mean you’re playing it safe. Within the prop firm universe, there are certain guidelines you must adhere to, and crossing them by mistake or complacency can easily shut down your funded account.
We will take you through the process of trading the headline forex pairs on MT5 and remaining comfortably within your prop firm’s guidelines. We’ll discuss the why, the how, and the “don’t even think about it” times so that you can trade with confidence and maintain that account.
What Are Forex Majors?
Forex majors are the stars of the currency universe. Everybody knows them, everybody discusses them, and everybody trades them. They are:
- EUR/USD – The most traded currency pair in the world. Low spreads, high liquidity.
- GBP/USD – Unpredictable, but if you understand its nature, it’s a rewarding trade.
- USD/JPY – Moves smoothly, particularly during Asian and US sessions.
- USD/CHF – Famous for safe-haven flows.
- AUD/USD – Tied to commodities, particularly gold.
- USD/CAD – Trades with oil prices.
- NZD/USD – A “risk-on” currency, usually trailing overall sentiment.
Prop firms generally adore these pairs because they’re liquid, they respond well to technical and fundamental influences, and they’re less prone to having wild, unpredictable spreads—at least relative to exotics.
Why Prop Firms Like You To Trade Majors
If you’ve ever scanned through your prop firm’s rules (and you should, unless you like inadvertent infractions), you’ve likely seen that they don’t prohibit you from trading exotics—but they might just as well have a giant “stick to majors” banner.
Here’s why:
Liquidity Equals Quick Execution
On MT5, liquidity is everything. Majors have sufficient market activity that your trades are filled virtually in an instant—something prop firms adore because it minimizes slippage.
Lower Spreads = Lower Costs
Because prop firms desire you to survive the game, they do not desire you burning capital on huge spreads. The majors tend to have the lowest spreads, particularly in their high-volume sessions.
Better News Flow
Major currency pairs are connected with the largest economies, so you will never have trouble detecting market-moving news.
Lower Risk of Slippage During News
Though slippage can still occur (particularly if you’re trading NFP), majors are more resilient to volatility than thinly traded pairs.
The Prop Firm Rulebook You Can’t Ignore
Each prop firm has its own rulebook, but in the case of majors, these are the ones you’ll find most prevalent:
Daily Drawdown Limit
Even when you only trade EUR/USD, you can’t risk taking huge losses on a single day. If your prop house is “5% daily max drawdown,” that means 5% including open positions.
Pro tip: MT5 allows you to monitor equity in real time, so pay attention to it—not simply your balance.
Overall Max Drawdown
Blowing your account is easier than you imagine if you pile on too many losing trades. Majors may be “safer,” but leverage is applied the same way on them as on any pair.
Lot Size Restrictions
Certain prop companies restrict lot size per trade or account. MT5 makes it simple to switch position sizing before clicking “Buy” or “Sell,” so make it a habit to check.
No Trading During Certain News Events
Yes, majors are more stable, but news events can still cause chaos. If your firm bans trading during high-impact announcements, respect that.
Consistency Rules
A lot of firms want to see consistency—no going from micro-lots to massive positions overnight. Even if you’re in profit, scaling up too fast can flag your account.
Setting Up MT5 for Major Pair Trading
When you’re funded, speed and simplicity are paramount. MT5 is filled with features that make major trading more fluid—if you know how to configure it.
Keep Your Watchlist Trim
Make a Market Watch list containing only the majors you trade. This keeps your workspace uncluttered and execution quicker.
Employ Multiple Timeframes
Majors honor technical levels on multiple timeframes. As an example:
- D1 for overall trend direction
- H1 for intraday setups
- M15 for entries and exits
MT5’s “Tile Windows” option allows you to see all of these charts at the same time.
Set Alerts for Key Levels
No more chart babysitting. MT5 alerts can alert you when price hits a support/resistance level, leaving your brainpower available for analysis instead.
Customize Templates
Make a template for the majors—candlestick chart, moving averages, perhaps RSI or MACD—and save it. Then you can easily load it on any major pair without setting things up again.
Risk Management on Majors: Don’t Get Complacent
Since majors are less volatile than exotics, some traders tend to underestimate the risk. Fatal error.
Here’s how not to lose control:
Understand the ATR (Average True Range) of every pair. EUR/USD and GBP/USD have extremely different daily ranges.
Tighten stops and targets depending on volatility. For instance, a 15-pip stop on GBP/USD could get taken way too often, while it may be appropriate on USD/CHF.
Don’t overleverage merely because spreads are small. Your prop firm’s rules do not know or care if you hemorrhaged the account on EUR/USD or USD/TRY—it’s lost regardless.
Timing Is Everything
Trading majors is all about catching them when they’re most alive.
- London Session (8 AM – 4 PM GMT): EUR, GBP, and CHF pairs shine.
- New York Session (1 PM – 9 PM GMT): EUR/USD, GBP/USD, USD/CAD, and USD/JPY receive heavy volume.
- Asian Session (12 AM – 8 AM GMT): USD/JPY and AUD/USD tend to be more active.
MT5 allows you to view tick volume, so if a market appears to be sleepy, it likely is—wait for the active hours.
