Prop Firm Updates - August 17, 2024

⛔ FUNDS FOR TRADERS SHUT DOWN

Funds For Traders is the latest prop firm to announce its closure, citing Eightcap’s decision to end support for MetaTrader platforms in the prop trading sector as the reason. 🚪 Although Eightcap hasn't confirmed this officially, there’s speculation that MetaQuotes, the creator of MetaTrader, is becoming more cautious about its involvement with prop firms. 🤔 This shift became noticeable earlier this summer when MetaQuotes stopped providing services to several firms, leading the industry to explore other technologies, develop in-house platforms, and expand into futures trading. 🔄

The underlying concern appears to be the legal complexities surrounding CFD trading by prop firms in the U.S., which MetaQuotes may view as a potential regulatory challenge. ⚖️ Their concern is that allowing prop firms to facilitate CFD trading could draw unwanted attention from regulators, prompting MetaQuotes to proactively cut ties with such firms. 🚫

Reports suggest that over 20 other prop firms could face similar challenges, though none have made public statements yet. 🕵️‍♂️ While it may be too early to draw definitive conclusions, the growing concerns should prompt traders affiliated with these firms to remain vigilant and prepare for potential disruptions. ⚠️

”Announcement We are ready to acquire any prop firm that shuts down or pauses operations, taking on all their traders and onboarding them to our platform. Additionally, the migration would take only 1-2 days, depending on the size of the prop firm and the time of the agreement, that would apply for those who come first. For more information, please contact us at [email protected].”

To clarify, we will not be doing this for free. If the prop firm is willing to offer 70% of the challenge fees for all its active traders, our risk management team will determine which firms have a healthy number of funded traders and account sizes. Based on the 70% of all challenge fees and further risk calculations, we will make our decision. We will not simply do this for free.

@astragroupx