In another blow to the prop trading industry, Funding Pips has abruptly closed trading and stopped services for all traders. Finance Magnates has learned that the prop trading company has sent notices to its clients calling the move an "unexpected urgent maintenance."
The Role of Blackbull
The service of Funding Pips was disrupted as its only brokerage partner, Blackbull Markets, has terminated its services. A representative of the broker also confirmed that it was forced to terminate its services to prop trading by MetaQuotes.
"We we’re unfortunately in breach of our grey label licence ability to offer this for prop firms so we’re forced to immediately shut down Funding Pips as a client and their server on our Demo environment. Note, they only ever operated on our Demo server via MT5," a Blackbull Markets representative told Finance Magnates.
"We have not lost our license with Metaquotes and continue to operate business as usual. There is an issue with our mobile application which our teams are working on restoring."
Blackbull is headquartered in Auckland, New Zealand, and offers retail trading services with its licenses obtained from the regulators in New Zealand, Seychelles, and the United Kingdom. The broker expanded to the European Union by partnering with Cyprus-based HokoCloud for offering copy trading services and acquired ATM Strategy, an independent research firm.
As seen on its website, Blackbull offers trading services with multiple third-party platforms, including MetaQuotes-owned MetaTrader 4 and MetaTrader 5, and cTrader.
It is not confirmed if prop trading platforms, other than Funding Pips are using the services of Blackbull Markets.
A Dubai-Based Prop Trading Firm
On its website, Funding Pips mentions that it is based in Dubai but does not offer services in United Arab Emirates, United States and Vietnam, labeling them as "restricted countries."
Finance Magnates reached out to MetaQuotes but did not receive any response as of press time.
