More Firms to Halt Prop Trading Services as MetaQuotes Expands Policies

In a follow-up to Fazzaco's yesterday report on Funding Pips ceasing prop trading services​, MetaQuotes, the developer of MT4 and MT5, continued taking their stricter policies up a notch, affecting brokers and proprietary trading firms serving US clients.

Eightcap, a broker provider that catered the needs of a number of prop firms, announced that they are halting services due to MetaQuotes' tightened regulations. Eightcap said it will cease serving proprietary trading firms by February 29, prompting a scramble for alternatives within the industry.

Matt Lark, CEO of Lark Funding, acknowledged Eightcap's decision as a setback but expressed confidence in their partnership with ThinkMarkets and MetaQuotes. Lark emphasized the necessity for prop firms to diversify brokerage relationships and assured traders of seamless transitions to new platforms.

Community responses reflect a mix of concern and confusion, with discussions highlighting the urgency to adapt to evolving regulatory landscapes. Speculation suggests a deadline as late as June 30 for brokers to rectify regulatory violations.

The impact extends globally, with reports indicating Top Tier Trader banning traders from various countries and prop firms like The5ers and Smart Prop Trader discussing challenges stemming from brokers' reluctance to onboard third-party clients.

Affected prop firms, including Blue Guardian and Funded Trading Plus, are actively seeking alternative brokerage services. Firms reliant on ThinkMarkets are reassessing their options amidst the evolving regulatory landscape.

As the industry navigates transformative changes, stakeholders anticipate a paradigm shift in the dynamics between proprietary trading firms, brokers, and regulatory authorities. Stay tuned for further updates from Fazzaco as the situation unfolds.