The Funded Trader's Relaunch: In Another Place and In A Controversial Way

According to Fazzaco News this week, the US-based prop firm The Funded Trader has announced it is undergoing restructuring and plans to transfer its operations to an entity registered in the Cayman Islands​. As recently as the end of March, the company announced a suspension of all business operations, setting up a countdown timer on its website for the resumption of activities.

It's common knowledge that the proprietary trading industry suffered a devastating blow earlier this year due to MetaQuotes' crackdown on Grey Labeling, prompting many prop firms to migrate from MetaTrader to other platforms, with several firms ceasing operations altogether.

Sudden Operational Halt Following Platform Migration

Long regarded as a significant leader in the industry, The Funded Trader (TFT) began receiving customer complaints in this January about slippage in trades, followed by issues with payouts. At the time, it was not clear within the industry that these incidents foreshadowed a storm that would sweep across the entire prop trading sector. Consequently, the amounting customer complaints was more attributed to the operational issues within the prop firm.

With the growing number of complaints, TFT's ranking declined. This compelled its founder Angelo Ciaramello to issue a statement on social media, assuring an imminent overhaul of the company's operational structure.

However, by March, an increasing number of customer payouts were halted. TFT explained this was a result of MetaQuotes' crackdown in February, and they were migrating from the MetaTrader to cTrader, leading to the aforementioned issues. Angelo had to step in once again, posting on social media that customers "have been the lifeblood of TFT," announcing a temporary suspension of operations​ to protect existing clients and facilitate a swift brand relaunch.

A Fresh Start in the Cayman Islands?

On April 18, nearly three weeks after TFT announced the suspension of operations, they updated their progress on the website, indicating a relaunch was imminent. However, at the same time, numerous TFT users reported that TFT "breached" and shut down their accounts, with some sharing screenshots on social media of the notifications sent by TFT.

In their official statement, TFT indicated they are currently processing the transfer from the United States to the Cayman Islands. Upon completion of the transfer, there will be corresponding changes in the company's ownership structure and operational location.

This has led many to question whether the ownership of TFT will remain the same or change hands following this "physical" migration. Notably, Angelo, as a founder of TFT, has remained silent on social media (despite being an active poster). Interestingly, his LinkedIn profile now lists his role as Co-Founder and CEO of The Funded Trader in the past tense (from April 2021 to March 2024), further fueling industry speculation about TFT's true status.

In the latest statement at the end of April, TFT "assured that all accounts with pending payout requests will receive their funds."

Final Thought

What TFT has gone through in recent months are just the tip of the iceberg in the shake-up of the entire prop trading industry. There are many reasons behind these issues, one of which is the industry's rapid growth in its early years, largely driven by marketing tactics. While these tactics efficiently attracted more new traders, they also led to unsustainable business practices and customer service—overemphasizing "get-rich-quick" success stories attracted individuals interested in gambling rather than those intending to become professional traders.