The proprietary trading platform MyFundedFX has announced a significant change affecting its clients in the US. Effective immediately, US clients are restricted to purchasing new challenges exclusively on DXtrade, the company mentioned in a statement on X (formerly Twitter).

Existing clients from the US, including residents and dual citizens, must adhere to the new restrictions. This change limits their trading activities solely to DXtrade challenges. However, current trades will proceed as usual for the remainder of the week to give traders time to adjust to the upcoming transition.

Adjustments for US Traders

The company mentioned: "All existing US clients may continue trading this week as normal. We are still coordinating with our tech team, but your accounts will be migrated off MetaTrader and onto DXtrade later this month."

Effectively immediately, US clients are restricted to only purchasing new challenges on DXtrade. This includes residents of the US and those living in the US with dual citizenship.

All existing US clients may continue trading this week as normal. We are still coordinating with…

— MyFundedFX (@MyFundedFX) February 19, 2024

Currently, the proprietary trading industry is undergoing a significant shift as platforms grapple with regulatory pressures and seek alternative solutions for their clients, Finance Magnates reported.

MetaQuotes, the operator of MetaTrader 4 and 5, is allegedly tightening its grip on the use of the platforms, particularly concerning US regulatory compliance Compliance In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a Read this Term. This move has caused a ripple Ripple Ripple was co-founded by Jed McCaleb and Chris Larsen and was debuted in 2012 as both a digital disbursement network and a pre-mined digital coin denoted as XRP. Possessing less market cap than both Bitcoin and Ethereum, Ripple ranks as the third-largest cryptocurrency.Its dual open-source and peer-to-peer (P2P) decentralized platform whose network is capable of working with any form of money such as GBP, Ethereum, Yen, etc. What is Ripple Used For? Known as a gateway, participants of Ripple may Ripple was co-founded by Jed McCaleb and Chris Larsen and was debuted in 2012 as both a digital disbursement network and a pre-mined digital coin denoted as XRP. Possessing less market cap than both Bitcoin and Ethereum, Ripple ranks as the third-largest cryptocurrency.Its dual open-source and peer-to-peer (P2P) decentralized platform whose network is capable of working with any form of money such as GBP, Ethereum, Yen, etc. What is Ripple Used For? Known as a gateway, participants of Ripple may Read this Term effect across the proprietary trading sector, with several firms confirming the cessation of their partnerships with MetaQuotes due to concerns over active US clients.

The MetaQuotes Challenge

Top brokerage firms like Blackbull Markets and Purple Trading have been compelled to sever ties with proprietary trading platforms following MetaQuotes' actions. Blackbull Markets, for instance, cited compliance issues as the reason for terminating services to Funding Pips, a Dubai-based proprietary trading firm.

In response to the crackdown, proprietary trading platforms are diversifying their offerings by integrating alternative trading platforms such as cTrader and Match-Trader. Some firms, like Funding Pips, are obtaining other licenses under their brokerage authorization to reduce reliance on third-party providers.

Many proprietary trading platforms have ceased offering services to US-based clients altogether, echoing the actions of firms like The5ers and FTMO. Maven Prop Trading and FundedNext are among those pausing new sign-ups from the US while exploring alternative solutions.