Funded Friends, a prop trading firm founded earlier this year, announced it will cease operations and be acquired by competitor TradingFunds, according to a statement from CEO Arjo Janssens.

Prop Firm Funded Friends Closes, Pledges Full Refunds to Traders

From the information posted last weekend on the official Discord and X (formerly Twitter) by Funded Friends, it seems the company has no liquidity issues nor problems with paying out customer funds. According to the CEO, the business side of the prop firm has "lots of potential," but Janssens himself wants to focus on his core activities as a financial influencer.

Janssens, who started Funded Friends in 2024, said the decision to close the company stems from a desire to refocus his efforts on trading education rather than running a prop trading business.

"I have realized it's not my passion, and it is not a business that I want to keep pursuing," Janssens stated. "The time and energy put into Funded Friends are taken away from all the value I can bring to people through education instead."

This is another prop trading firm that announced its closure this month. In mid-September, Gold Funded Trader made a similar move due to a lack of interest in its offerings.

As part of the closure, Funded Friends will provide full refunds to all active account holders. Additionally, traders will receive vouchers equal to their account values for use at TradingFunds. The firm also pledged to pay out profits to funded accounts, even for those not meeting typical minimum trading requirements.

I wanted everyone to hear this from me. Arjo here.

I recently started Funded Friends prop firm, which is not a white label, and no, we don’t have liquidity issues or issues paying out traders.

But in recent times, I have come to a conclusion: Funded Friends has lots of…

— Funded Friends (@FundedFriends) September 28, 2024

Janssens also stated that all Funded Friends employees have been assured new positions as part of the transition.

"This decision is ultimately the best one I could make and allows me to spend more time focusing again on my trading, MMT, free YouTube, and my family," Janssens said. “Whilst ethically leaving Funded Friends behind.”

TradingFunds has been in the market for over a year and a half and offers one and two-step evaluations for retail traders, with accounts up to $600,000. The financial terms of the deal were not disclosed.

Increasing Consolidation in the Prop Trading Market

Earlier this year, Finance Magnates spoke with Crystal Lok, the Head of Emerging Markets at OANDA, who suggested that while there are currently many firms in the prop trading market, the industry will begin to consolidate more strongly.

In her view, issues such as access to MetaTrader from MetaQuotes, or problems with payouts in the prop trading model for small firms, may lead to only the strongest players remaining in the market.

"Potential future regulatory scrutiny on the prop model might lead to consolidation among larger players," Lok commented.

We didn't have to wait long for examples of consolidation. In July, struggling prop firm MyFlashFunding was acquired by Sway Funded, which was intended to save it from bankruptcy Bankruptcy Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co Bankruptcy or insolvency constitutes a legal term and refers to being unable to repay debts. A business and a person can declare bankruptcy. When a person or company claims bankruptcy, it is described as a voluntary bankruptcy, and when your debtors force you into bankruptcy, it is referred to as involuntary. A voluntary bankruptcy occurs when the debtor or borrower, the party that owes the money files with the courts. Involuntary bankruptcy happens when your credits file a petition with the co Read this Term. A month later, Sway Funded acquired another company with problems, this time Karma Prop Traders.

At the same time, Astra Capital Group stated that it was "ready to acquire any prop firm that shuts down." This was meant to be a response to the turmoil in the prop trading industry. Up to 20 trading firms may have closed due to MT4 and MT5 licensing issues.

Meanwhile, AXE Securities, a contract for differences (CFDs) broker operating from the Bahamas, has become the latest to enter the fast-growing prop trading industry by acquiring The Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Funder (TFF) from financial influencer Tommy Cobain.