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 neither liquidity issues nor problems paying out customer funds. According to the CEO, the business side of the prop firm has “lots of potential.” However, Janssens himself wants to focus on his core activities as a financial influencer.

Janssens started Funded Friends in 2024. He 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.

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. It 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, OANDA's Head of Emerging Markets. She 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. It was intended to save it from bankruptcy . A month later, Sway Funded acquired another company with problems, Karma Prop Traders.

At the same time, Astra Capital Group stated 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. It has acquired The Forex Funder (TFF) from financial influencer Tommy Cobain.