Smart Prop Trader, a prop firm offering funded trading accounts, announced it will cease accepting new traders as it prepares to wind down operations by year-end. Although the company promises to introduce a new product, for now, it is just another firm disappearing from the rapidly evolving proprietary trading sector.

Prop Firm Smart Prop Trader Sets December Exit Date

“Smart Prop Trader will no longer onboard new traders,” the company commented in a social media post. “Smart Prop Trader is committed to doing the right thing by prioritizing fairness, transparency, and respect for our traders and provide extra time for traders to earn payouts.”

The company, led by CEO Blake Olson, will continue supporting existing traders through December 29, 2024, maintaining regular payout schedules and offering refunds to qualifying November account holders.

“We're proud to take this responsible and trader-first approach, ensuring your trust is honored as we prepare for what's next,” the proprietary firm commented on X, presenting the closure of its operations as though it was a positive development.

The firm has implemented a structured exit strategy:

• Current traders can continue operations through December 29
• November 2024 account holders at break-even or above qualify for full refunds
• Accounts in good standing post-December 29 will receive individual resolution plans

Smart Prop Trader hints at future developments, suggesting a potential pivot that could “redefine the greater trading industry,” with announcements expected in the coming weeks. However, the details about the potential new venture were not provided.

According to industry sources, at least 50 prop trading firms ceased their operations this year.

“This wave of closures began when regulatory authorities in the US and Canada froze My Forex Funds, a major player in the industry,” FunderPro’s Alex Zanutto wrote in an op-ed for Finance Magnates. “Following this, True Forex Funds, Surge Trader, and Skilled Funded Traders all shut down.”

Not the First, and Certainly Not the Last

Prop trading firms have been emerging and disappearing at a rapid pace in the past year. Smart Prop Trader has now joined the growing list of firms unable to survive in this highly competitive market.

In late September, Finance Magnates reported that Funded Friends, a prop trading firm founded earlier this year, announced it would cease operations and be acquired by competitor TradingFunds. The announcement was made by CEO Arjo Janssens.

Just a month earlier, Funds For Traders informed its users that it would also be shutting down. The company attributed the suspension of its services to Eightcap’s decision to stop supporting the MetaTrader 4 and MetaTrader 5 platforms for prop trading.

Around the same time, Karma Prop Traders also announced its closure. The firm’s founder, Eshan Balapatabendi, stated that while he “had good intentions,” he faced “roadblocks” that made the business “unsustainable.” Despite receiving positive reviews, Karma Prop Traders lasted only two months. Balapatabendi blamed liquidity issues for the firm’s downfall, accusing “cheaters” of contributing to its closure.

Over the summer, Funded Engineer, another struggling prop trading firm, announced the “permanent closure” of its operations, effective immediately. The company revealed its decision to file for bankruptcy through its official social media channels.

“Despite our extensive efforts to improve our financial situation, we have been unable to overcome the challenges we faced, necessitating the cessation of all operations effective immediately,” the announcement stated. “As part of this closure, Funded Engineer will be filing for bankruptcy.”