FTMO and The5ers Halt Services for US Clients Amid Continuing Prop Trading Crackdown

Affected by the increased regulatory pressure and MetaQuotes's restrictive measures targeting the prop trading field, FTMO and The5ers have become the latest batch of prop trading companies to suffer setbacks in service provision.

On Friday, The5ers stated in a post on X: "Due to recent events, we have made the difficult decision to suspend onboarding new US traders. This measure will remain in effect until we have a clearer understanding of the legal implications surrounding US individuals trading for prop funds."

The firm noted that "these precaution measures are necessary to ensure compliance with evolving regulatory requirements". The5ers is updating its guidelines for US clients, as mentioned in the X post.

FTMO, another leading prop trading firm, notified their clients via email over the weekend, "Due to the recent developments, the MetaTrader 4 & MetaTrader 5 trading platform will not be available for our US clients from Monday, 19th February 2024 (inclusive). This decision affects both US nationals and residents (clients who are non-US nationals but reside in the USA) and covers all desktop, web, and mobile versions of the trading platforms."

According to the email, any remaining positionsin clients' active MetaTrader accounts were closed after the market's close on last Friday. Additionally, their accounts will be migrated to the new DXtrade trading platform, where they can resume trading as usual on Monday.

As of press time, FTMO has not provided further updates on the matter.

Last month, Fazzaco mentioned in the article "How Will Prop Trading Firms Navigate the U.S Regulatory Landscape After SEC Narrows Exemption​" that the U.S. Securities and Exchange Commission (SEC) passed amendments to the Securities Exchange Act, and almost all prop trading brokers engaged in OTC securities transactions will thereafter be subject to the oversight by FINRA.

Furthermore, MetaQuotes, the developer of MT4/5 trading platforms, recently enforced restrictions on prop trading firms using their licenses. Several companies, including Funding Pips​, True Forex Funds​, and Eightcap, had their licenses terminated by the software provider and were forced to suspend their services.

Regulatory agencies and trading platforms continue to tighten restrictions on the prop trading industry. Fazzaco will continue to pay attention to reporting on the latest developments.