Discover the 5 reasons why prop firms shut down forex funding services. In recent months, repeated prop firm shutdowns have raised concerns about the sustainability of forex funding programs. While legitimate prop firms continue to follow sustainable practices, poorly regulated financial institutes are closing all funding operations. Primarily, these prop firms shut down services due to reliance on short-term gains – bringing more challenges to sustain volatile market conditions. As a forex trader yourself, always join legitimate platforms to avoid prop firms following unsustainable practices – leading to unexpected shutdowns.
As a legitimate prop firm, Funding Traders follows a sustainable funding model with a focus on long-term profitability, risk management, and increased earnings. Join Funding Traders to take advantage of:
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Here’s why prop trading firms shutdown forex funding services.
Simulated Funded Accounts
Simulated funded accounts are a major reason why prop firms shut down forex funding services. These simulated prop trading accounts only share fake virtual capital to trade forex markets. Since funded accounts are fake, prop firms run a Ponzi scheme to issue promised payouts when a few clients fail the evaluation. Ultimately, this business model forces international regulators to terminate the prop firm’s services.
Meanwhile, trusted prop firms share real capital with funded traders. Funding Traders shares profit splits with all clients – eliminating the scope of any Ponzi schemes. You can continue earning profits on your funded account – without the risk of regulatory shutdown.
>> Select an account size to trade live forex markets with real capital. With FT, you can choose between multiple account sizes, including:
- Mini ($10,000)
- Starter ($25,000)
- Basic ($50,000)
- Advanced ($100,000)
- Superior ($200,00)
Definitely, simulated funded accounts may lead to unexpected prop trading firm shutdowns.
Lack Of Regulatory Oversight
Lack of regulatory oversight is another reason behind prop firms shutting down forex funding services. True Forex Funds shutdown warned other prop firms about the significance of following strict regulations. Ultimately, regulated prop firms follow ethical business practices that reduce the risks of unexpected collapses. Keep in mind that poorly regulated prop firms only follow aggressive marketing tactics to increase business revenue. Of course, you should look for prop firms with strong management, reputation, and regulations to join a trusted partner.
>> Funding Traders maintains global industry standards to reward you with fair opportunities. Follow the prop firm’s policies to trade in a regulated environment – reducing your potential losses.
Indeed, poor regulatory oversight is a major reason why prop firms shut down forex funding services.
Strict Regulations For US Traders
Strict regulations force prop firms to shutdown forex funding services for US traders. Recently, US-based regulators set strict policies for retail prop firms operating in the US. Notably, these restrictions were placed when US regulators sued My Forex Funds for defrauding traders – resulting in the firm’s overnight shutdown. In fact, these regulatory actions led to other closures – including Funded Engineer, The Funded Trader, and SurgeTrader operation shutdown in the country.
>> As a reputable prop firm, Funding Traders accepts global clients with options to choose multiple liquidity providers – allowing you to trade forex markets from the US. Select a challenge account and showcase a consistent performance to receive a funded forex account.
Definitely, strict regulations in the US are a major reason why prop firms shut down forex funding services.
Increased Market Volatility
Increased market volatility is another common reason why prop firms shut down forex funding services. In recent months, gradually increasing market volatility led to economic downturns – forcing many prop firm businesses to terminate operations. Typically, prop trading firms with limited experience struggle to manage market fluctuations during increased volatility. Ultimately, these companies face substantial losses – creating a challenging environment to continue forex funding services.
Instead, you should join industry-leading prop firms with years of experience in managing funding operations. Funding Traders continuously upgrade technological platforms to create a competitive environment for our clients – even during high-volatility market conditions.
>> With Funding Traders, you can choose between MT5 and TradingViewo platforms to manage your funded accounts. With these advanced platforms, you can make informed decisions to execute profitable trades even when FX markets fluctuate.
Definitely, market volatility forces many poorly structured prop firms to shut down forex funding services.
There are several reasons why prop firms shut down forex funding services for traders. Many prop firms only offer stimulated capital to funded traders – relying on Ponzi schemes to issue payouts. Plus, many non-regulated prop trading firms follow aggressive marketing techniques to attract new clients. Prop firms in the US also need to follow strict regulations to offer forex funding services in the country. In addition, increased market volatility may cause prop trading businesses with limited industry exposure to face substantial losses – resulting in permanent shut downs. Ready to join a reputable prop firm? Click here to sign up for a forex funding trading challenge.
