Instant Funding, a prop trading firm, has confirmed that its brokerage partner ThinkMarkets will cease to provide services to prop firms’ clients in the United States starting February 23. Thus, the prop trading firm has used its American clients to close open positions before the deadline, or it would be done automatically.
A source close to the matter at ThinkMarkets confirmed to Finance Magnates about the broker's notice to "existing proprietary trading firms to cease onboarding US registrations and to terminate any existing US customers."
"Additionally, we have decided to temporarily suspend onboarding services to such firms and are currently re-evaluating our existing arrangements to ensure they align with our standards."
ThinkMarkets Ends Support for US Customers
“We want to inform our American clients of an important change in our trading platform due to a recent decision by our partner broker, ThinkMarkets,” Instant Funding tweeted.
“As of the end of the trading session on Friday, February 23, ThinkMarkets will cease to provide services to prop firms’ clients in the United States, in compliance with a request from our current trading platform provider.”
Hey team,
— Instant Funding (@InstantFunding_) February 20, 2024
We want to inform our American clients of an important change in our trading platform due to a recent decision by our partner broker, ThinkMarkets.
As of the end of the trading session on Friday, February 23, ThinkMarkets will cease to provide services to prop firms’… pic.twitter.com/51KwgYYjnk
The prop trading platform did not name its “current trading platform provider,” but it is MetaQuotes, the developer of the two MetaTrader platforms. Furthermore, the prop trading platform did not specify anything about new clients from the US; however, it can be inferred that it will suspend new registrations.
ThinkMarkets has joined several other brokers to restrict services to the US clients of prop trading firms. Unlike Purple Trading and Blackbull, which terminated offerings to prop firms altogether, ThinkMarkets continues to offer its services outside the US. Several prop trading firms claimed that Eightcap, another brokerage offering services to these firms, would entirely scrape its services at the end of February; however, the brokerage refused to confirm those claims.
The source close to the matter at ThinkMarkets added: " As part of our customary procedures, we consistently evaluate our commercial and operational relationships in the group and affiliates. Based on these evaluations, we take necessary actions, including adjusting specific commercial arrangements, particularly with certain proprietary trading firms."
"Historically, similar agreements have been terminated as routine elements of our business practices, typically without attracting significant public scrutiny."
The Rise of MetaTrader Alternatives
The unrest in the prop trading industry in the past two weeks was created by the alleged crackdown of MetaQuotes, which does not want its trading platforms to be used by traders in the US.
Although MetaQuotes did not confirm anything officially, several prop trading firms and even an executive of Blackbull Markets confirmed that MetaQuotes forced its license holders to terminate services to US customers.
Meanwhile, prop trading platforms are now migrating to MetaTrader rivals. Instant Funding confirmed that it is in the process of integrating DXtrade to resume offerings to US customers. Several other prop trading companies integrate trading platforms like cTrader, Match-Trade, and others to continue services. The Funded Trader is another platform that integrated cTrader and is now pushing to integrate Blueberry Markets.
We are pushing to integrate Blueberry Markets Platform 5 on Friday. We are also meeting with other Platform 5 options. Team is working around the clock. These will be available for all non-usa traders.🫐
— The Funded Trader (@thefundedtrader) February 20, 2024
Other prominent prop trading firms recently restricting services to US customers include The5ers, FTMO, Blue Guardian, Audacity Capital, Alpha Capital and many more.
