Exclusive: Prop Trading Firm FTMO Halts US Client Acquisition amid MetaQuotes Crackdown (2024)

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Exclusive: Prop Trading Firm FTMO Halts US Client Acquisition amid MetaQuotes Crackdown? ›

Amid a Crackdown on MetaQuotes, Prop Trading Firm FTMO has Stopped Acquiring New US Clients. Clients have been informed by the company of the switch to the new DXtrade platform. When trying to register using a US IP address, new traders discovered that the registration form was incomplete.

Their main concern seems to be keeping US based traders off of their platform, if used by a broker not licensed in the US. With many prop firms not so careful at avoiding deep pocketed US based clients, this move by MetaQuotes was inevitable.

In recent months, several prominent proprietary trading firms have gone out of business. This wave of closures began when regulatory authorities in the US and Canada froze My Forex Funds, a major player in the industry. Following this, True Forex Funds, Surge Trader, and Skilled Funded Traders all shut down.

It is not illegal to operate or trade with a prop firm. However, where most online prop firms come unstuck is in their business practices and terms of service.

The two MetaTrader apps were banned on Apple's App Store in 2022 for their alleged use by fraudsters targeting the US citizens and residents.

It is the powerhouse of all trading charts, analytical tools and order execution models that your traders interact with. Therefore, offering reliable trading software is essential. MetaQuotes is an easy pick since it is one of the oldest investing system developers, having been in the market for decades.

Even though FTMO Traders trade with fictitious capital only, they are entitled to obtain a reward in the form of real money if they can generate “profit” on an FTMO Account.

There is estimated to be a 90% fail rate of traders that take the FTMO challenge. The reason behind this is due to traders chasing the profit target with a time restriction in place. A trader doesnt know when a winning streak might occur, or when they may take a string of drawdowns.

Having successfully operated since 2015, we provided thousands of clients with their FTMO Accounts, and in total, we have paid out over $160 million. We've also been featured in Forbes and awarded by Deloitte and EY multiple times.

Can you lose money prop trading? ›

Profits from trades are generally divided between the firm and the prop trader; however, the risk distribution is asymmetric. This means that in the event of a loss, the trader bears 100% of the losses, while they don't receive 100% of the profits.

Prop traders can operate under their own rules-based system using the fund's capital, not money from outside investors. Prop traders also get to keep a large portion of their profits, which brings up the next primary perk: compensation. Prop traders often get a base salary, a cut of the profits and performance bonuses.

They employ various trading strategies and techniques to capitalize on market opportunities. Prop trading is inherently risky due to the exposure to market volatility and the potential for substantial financial losses.

MetaQuotes, the developer of popular trading platforms MetaTrader 4 and MetaTrader 5, is cracking down on several prop trading firms such as Ftmo, the5ers, etc., and forcing many brokers to terminate their services (if these firms do not comply). This decision has had a negative impact on most prop traders in the US.

MetaTrader iOS – the MT4 and MT5 apps – have been removed from the App Store. The trading platform's desktop version is still available to download and the Google Play version hasn't been affected. Apple hasn't released a formal statement. This could be a good moment to start searching for MT4 alternatives.

Due to regulatory changes in the United States, the owner of MetaTrader began cracking down on the prop industry and forced Purple to terminate their services to prop firms. These firms started switching to alternative platforms, although many have since re-offered MetaTrader to their clients.