Prop Firm Dramas Continue Again...

In response to recent speculation surrounding their dealings with proprietary trading firms, Eightcap CEO Alex Howard has stepped forward to address and clarify the situation. Simultaneously, prop trading firm The5ers has announced a significant shift in its approach towards US traders.

Amidst reports that MetaQuotes' more stringent policies have prompted several prop firms to cease their services, Matt Lark, CEO of Lark Funding, disclosed via Twitter that Eightcap would no longer cater to his company and other proprietary trading firms after February 29. Despite this setback, Lark expressed confidence in their collaboration with ThinkMarkets, citing assurances regarding their operations and a “solid relationship” with MetaQuotes.

Taking to LinkedIn today, Alex Howard expressed disappointment over the misleading narratives circulating about Eightcap's recent decisions. He highlighted the lack of a fair opportunity for the company to comment on the matter and clarified that reassessing and terminating commercial partnerships are routine aspects of their business operations, aligning with industry norms. Howard emphasized that despite the cessation of certain relationships, it's “business as usual” for Eightcap, reaffirming their commitment to the CFD, Forex, and Prop industries.

In response to an uncertain regulatory environment, The5ers prop trading firm has temporarily halted onboarding new US traders. This precautionary measure aims to ensure full compliance with the legal frameworks governing the participation of US individuals in proprietary trading.

Prop firms utilizing Eightcap's services, such as Blue Guardian, Funded Trading Plus, and The Funded Trader, may be affected. Meanwhile, those relying on ThinkMarkets include AquaFunded, Bespoke, Forex Capital Funds, Goat Funded Trader, Instant Funding, Lark Funding, Ment Funding, My Flash Funding, My Funded FX, Skilled Funded Traders, Swift Funding, and The Funded Trader.

Last week, retail prop trading tech provider FPFX Technologies, LLC, terminated its licensing agreement with the prop firm Funded Engineer following an internal audit. Funded Engineer defended itself, claiming that Purple Trading's suspension of MT4 and MT5 services for all prop firms is impacting the entire prop firm community.

Another prop trading firm, True Forex Funds, declared a “temporary halt” to its services in response to MetaQuotes terminating its licenses for the widely-used trading platforms MT4 and MT5. This development follows the shutdown of Canada's My Forex Funds by US and Canadian regulators last September.