Prop Trading Firm True Forex Funds Ceases Operation After License Termination by MetaQuotes

The proprietary trading firm, True Forex Funds, announced that it has suspended all services following the termination of its license by MetaQuotes, the operator of the popular trading platform MetaTrader4/MetaTrader5 (MT4/MT5).

In a post on the company's official website, Richard Nagy, CEO of True Forex Funds, stated: "Due to a non-sense reason, MetaQuotes has terminated our licenses, and therefore, we have to freeze our services TEMPORARILY. Our team is working hard on a plan to continue providing our services."

According to the post, the reason for the termination of the license was that True Forex Funds used a third-party provider for equity synchronization purposes who has allegedly not connected to MetaTrader's client terminal in a way that is fully acceptable by MetaQuotes.

Nagy said they will take measures to convince MetaQuotes to keep their licenses. If unsuccessful, True Forex Funds will try to migrate their clients' trading accounts to another broker's server.

This incident marks the second instance where a FX and CFD prop trading platform has been forced to suddenly halt its operations. In September of last year, the U.S. Commodity Futures Trading Commission (CFTC) and the Ontario Securities Commission in Canada jointly took action to freeze all services and assets of My Forex Funds, a prop trading platform suspected of fraud, while also initiating legal proceedings and investigations against its head, Murtuza Kazmi, and the associated companies.