Prop Trading Firm Bespoke to Resume Onboarding US-Clients with ThinkTrader Integration (2024)

FAQs

Why are prop firms leaving us? ›

Prop trading firms have been shutting down or suspending their services, particularly to U.S.-based clients, because of a crackdown from MetaQuotes, the company behind the popular MetaTrader trading platforms.

In fact, it completely suspended trading on MetaQuotes platforms and the acceptance of new clients from the region. Effectively immediately, US clients are restricted to only purchasing new challenges on DXtrade. This includes residents of the US and those living in the US with dual citizenship.

The industry's challenges stem from tightened restrictions by MetaQuotes, affecting Prop trading firms' access to MetaTrader platforms. This development has prompted a reassessment of the trading technology infrastructure and partnerships that underpin their operations.

US-based clients face restrictions from many prop trading firms due to regulatory concerns and MetaQuotes' crackdown, though some firms are finding alternative platforms to continue servicing US clients.

Please note that FTMO does not provide services to persons in/from (both nationals and residents) Iran, Syria, Myanmar, North Korea and USA, persons listed on sanction lists, persons with criminal records related to financial crime or terrorism, and persons previously banned because of breach of contract.

CedarFX accepts clients from all over the world, excluding some countries where restrictions apply.

No, you can't open an account at Eightcap if you live in the United States! As a global broker, Eightcap accepts clients from almost every country. Exceptions include countries like Iran, North Korea and the Republic of the Congo.

NordFX accepts clients from all over the world, excluding USA, Canada, Germany, Japan and New Zealand.

No, you do not need to be a United States citizen to participate. Topstep funds traders from all around the world! There are a few countries that we cannot legally do business with and those countries are listed below.

What is the future of prop firms? ›

Prop firms that operate in strict adherence to regulations are likely to have a more stable and sustainable business model. Additionally, this situation may prompt prop firms to diversify their trading strategies and explore alternative markets and platforms.

FTMO have now restricted access to all new US-based traders as of January 2024. This appears to be related to regulatory issues and may have something to do with the recent My Forex Funds case.

The Volcker Rule is one of the more controversial pieces of legislation to emerge from the financial crisis. Attached to the Dodd-Frank Act, the rule was intended to limit banks' ability to make speculative investments that do not benefit their customers.

Surge in Prop Trading Firm Ads Sparks Concern

These firms often promote trading in complex financial instruments such as CFDs and forex products, which pose significant risks to investors, potentially resulting in the loss of their entire investment.

Limited Control Over Capital and Payouts:

- Traders in prop firms often have limited control over the firm's capital. They may need to deposit their own money as collateral or risk management. - Additionally, payouts are subject to the firm's rules, which may restrict a trader's access to profits.

The future may see prop firms seeking new technologies and partnerships to continue offering their services, albeit within a more constrained and regulated framework. The unfolding scenario presents both challenges and opportunities for innovation in prop trading.