Smart Prop Trader has announced its intention to migrate to several new brokers and will also integrate cTrader trading platform. This followed the latest crackdown on proprietary trading companies by their technology providers. According to an announcement on X, Smart Prop Trader mentioned that it will provide further information about its latest move.
The company said: "In an effort to provide optimal transparency and the best customer experience for our users, Smart Prop Trader will be migrating over to multiple new brokers, including cTrader. We have been planning this migration for some time and have already made significant progress to ensure a seamless transition for our users. We will update you all with further details as soon as possible."
Prop Trading under Regulatory Scrutiny
In an email sent to Finance Magnates, a representative from Smart Prop Trader wrote: "Our team is actively engaged in resolving the ongoing issues and is diligently working towards incorporating a solution that ensures a seamless transition for our traders. We appreciate your concern and want to assure you that we are carefully considering all options to make the best decision for our clients."
Last year, the emerging sector of proprietary trading encountered a significant setback following a lawsuit against My Forex Funds by the US commodities regulator, Finance Magnates reported. While proprietary trading firms have traditionally operated outside the purview of stringent financial regulations due to their non-involvement in handling client funds, the scandal involving My Forex Funds brought the sector under the regulatory spotlight.
Proprietary trading firms offer traders the opportunity to trade with company funds on live markets to reduce the risk of capital loss. These firms typically split trading profits with traders, offering substantial profit shares up to 90 percent.
However, the operational models of prop trading firms vary significantly, with traders required to pay fees and fulfill specific trading challenges to qualify for access to company funds. Regulators worldwide, including those in the UK and Europe, are contemplating potential actions to address fraudulent practices and protect retail traders from exploitation.
Shockwaves in Prop Trading
Recently, Funding Pips, a prominent player in the sector, abruptly ceased trading operations and stopped services for all its traders. This move sent shockwaves throughout the prop trading community, raising questions about the stability and future of such firms.
Similarly, True Forex Funds, a online proprietary trading firm based in Hungary, is gearing up for a relaunch despite facing setbacks due to the termination of its MT4 and MT5 licenses by MetaQuotes. The company aims to integrate users' accounts and launch its cTrader platform as part of its reopening strategy.
