Melbourne-based Eightcap will change its offerings to prop trading firms by ceasing brokerage services, effective from February 29th, based on the claims of several prop trading firms. This move, which the company termed "not uncommon," followed similar moves between several proprietarytrading firms and their brokerage providers.
Finance Magnates reached out to Eightcap, which has "not confirmed the accuracy, or endorsed the contents, of the article or substance of various twitter/X comments."
In a post on LinkedIn on Friday morning, the CEO of Eightcap noted: "The termination of commercial arrangements is not uncommon to us or anyone else in the industry. We have terminated relationships in the past as part of ordinary commercial activities, in similar ways, and to less fanfare."
Matt L. from Lark Funding mentioned on X: "ThinkMarkets has reassured us several times over the last fewweeks that operations on their end and their relationship with MetaQuotes issolid. But, of course, we’re not going to rely on justone broker. We’re already in discussions with other brokers to see who we canwork with and provide additional options to traders."
According to another account identified as Blake on X:"As of this morning, Eightcap has notified all of their prop tradingpartners that they will be shutting down their prop firm relationships in 2weeks. The companies I am personally involved withare ahead of the pack and already implementing new and more beneficialalternatives for all traders across the entire industry. More news tocome!"
Similarly, another proprietary trading platform, Funded Trading Plus, has been affected by Eightcap's decision. According to a post by an account identified as The Prop Journalist on Twitter, the platform has integrated ThinkMarkets to resolve this issue.
MetaQuotes Is Making the Move
MetaQuotes, the platform behind MetaTrader 4 and 5, istightening its grip on proprietary trading firms, precipitating the termination ofservices for US clients. The recent fallout involves Funding Pips andbrokerages Blackbull Markets and Purple Trading, Finance Magnates reported.
MetaQuotes' actions underscore the challengesof navigating US regulatory restrictions within the MetaTrader ecosystem. Thetermination of services for US clients by Blackbull Markets and Purple Tradinghighlights MetaQuotes' stringent stance regarding prop trading firmsoperating in the United States.
The decision to terminate services to prop tradingcompanies stems from MetaQuotes' concerns over active US accounts. Proprietary tradingfirms, although operating beyond the traditional regulatory scope, areincreasingly targeted due to their technical exemption from US regulations.
Elsewhere, the proprietary trading firm FundedEngineer recently postponed plans to relaunch its services. This decision comesafter FPFX Technologies terminated its software licenses. Later, Purple Trading pulled out its brokerage services, prompting FundedEngineer to switch its brokerage to Blueberry Markets for all client trades.
Funded Engineer has announced refunds for eligibleclients, requiring accounts to have no drawdown greater than 4%. Those with drawdownsunder 4% can request refunds but will lose access to their accounts.Additionally, the company is addressing a backlog of pending payouts.
Update: This article has been updated with the response and social media post of Eightcap.
Melbourne-based Eightcap will change its offerings to prop trading firms by ceasing brokerage services, effective from February 29th, based on the claims of several prop trading firms. This move, which the company termed "not uncommon," followed similar moves between several proprietarytrading firms and their brokerage providers.
Finance Magnates reached out to Eightcap, which has "not confirmed the accuracy, or endorsed the contents, of the article or substance of various twitter/X comments."
In a post on LinkedIn on Friday morning, the CEO of Eightcap noted: "The termination of commercial arrangements is not uncommon to us or anyone else in the industry. We have terminated relationships in the past as part of ordinary commercial activities, in similar ways, and to less fanfare."
Matt L. from Lark Funding mentioned on X: "ThinkMarkets has reassured us several times over the last fewweeks that operations on their end and their relationship with MetaQuotes issolid. But, of course, we’re not going to rely on justone broker. We’re already in discussions with other brokers to see who we canwork with and provide additional options to traders."
According to another account identified as Blake on X:"As of this morning, Eightcap has notified all of their prop tradingpartners that they will be shutting down their prop firm relationships in 2weeks. The companies I am personally involved withare ahead of the pack and already implementing new and more beneficialalternatives for all traders across the entire industry. More news tocome!"
Similarly, another proprietary trading platform, Funded Trading Plus, has been affected by Eightcap's decision. According to a post by an account identified as The Prop Journalist on Twitter, the platform has integrated ThinkMarkets to resolve this issue.
MetaQuotes Is Making the Move
MetaQuotes, the platform behind MetaTrader 4 and 5, istightening its grip on proprietary trading firms, precipitating the termination ofservices for US clients. The recent fallout involves Funding Pips andbrokerages Blackbull Markets and Purple Trading, Finance Magnates reported.
MetaQuotes' actions underscore the challengesof navigating US regulatory restrictions within the MetaTrader ecosystem. Thetermination of services for US clients by Blackbull Markets and Purple Tradinghighlights MetaQuotes' stringent stance regarding prop trading firmsoperating in the United States.
The decision to terminate services to prop tradingcompanies stems from MetaQuotes' concerns over active US accounts. Proprietary tradingfirms, although operating beyond the traditional regulatory scope, areincreasingly targeted due to their technical exemption from US regulations.
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Elsewhere, the proprietary trading firm FundedEngineer recently postponed plans to relaunch its services. This decision comesafter FPFX Technologies terminated its software licenses. Later, Purple Trading pulled out its brokerage services, prompting FundedEngineer to switch its brokerage to Blueberry Markets for all client trades.
Funded Engineer has announced refunds for eligibleclients, requiring accounts to have no drawdown greater than 4%. Those with drawdownsunder 4% can request refunds but will lose access to their accounts.Additionally, the company is addressing a backlog of pending payouts.
Update: This article has been updated with the response and social media post of Eightcap.
