Weekly Roundup: More prop firms down, CoinDesk CEO out (2024)

February 10, 2024 12:54 am UTC, abdelaziz Fathi

Welcome to this week’s roundup, where we delve into the latest developments in the Forex, Fintech, and cryptocurrency markets. Stay ahead of the curve with our comprehensive overview of the week’s most impactful events and trends across these dynamic sectors.

We kick off our tour with a close look at the prop trading industry, highlighting the latest challenges and setbacks that have surfaced.

True Forex Funds follows My Forex Funds? Investors fear another scam exit

Proprietary trading firm True Forex Funds today announced a “temporary halt” to its services. The company said this move comes in the wake of MetaQuotes, the developer of the widely-used trading platforms MT4 and MT5, terminating True Forex Funds’ licenses. Read More

FPFX Tech accuses prop firm Funded Engineer of fraud, wash trading

Retail prop trading tech provider FPFX Technologies, LLC (FPFX Tech), has terminated its licensing agreement with the prop firm Funded Engineer following an internal audit. Read More

Prop firm Funded Engineer responds to fraud allegations

In the wake of FPFX Technologies, LLC’s (FPFX Tech) decision to terminate its licensing agreement with Funded Engineer—a move detailed in a prior article citing allegations of fraudulent activities—Funded Engineer has issued a series of updates addressing the situation. Read More

Let’s now pivot to explore the cryptocurrency market more closely

CoinDesk CEO and top execs depart after Bullish buyout

Kevin Worth, the long-serving CEO of CoinDesk, is stepping down as part of a major restructuring by the media, events, and information company’s new owner. Read More

Several crypto trading platforms in Hong Kong at risk of shutting down

Several cryptocurrency trading platforms operating in Hong Kong are facing the prospect of closure as the regulatory deadline set by the Securities and Futures Commission (SFC) approaches. Read More

B2C2 secures Luxembourg’s VASP license for OTC spot crypto services

B2C2 has recently received regulatory approval to operate in Luxembourg, enhancing its presence in the European Union as the Markets in Crypto-Assets (MiCA) regulation is set to come into effect by the end of 2024. Read More

Adyen, Marqeta, and Plaid to explore using Ripple XRP in US

Ripple, a leading blockchain company, is set to expand its payments business in the United States, moving beyond its current focus where 90% of its business is outside the U.S. Read More

DCG says Genesis repayments to exceed owed amounts

DCG’s contention centers around Genesis’s plan to offer its customers “additional payouts” that reflect the increased value of cryptocurrencies since January 2023, when Genesis filed for bankruptcy. DCG argues that such payouts exceed what customers and creditors are legally entitled to under U.S. bankruptcy law. Read More

SEC and NASAA hit TradeStation with $3M fine over crypto products

TradeStation Crypto has agreed to settle charges with the Securities and Exchange Commission (SEC) for failing to register a crypto lending product that offered investors the opportunity to earn interest on their deposits. Read More

Bakkt business faces uncertainty, seeks $150M in securities sale

Digital asset firm Bakkt, which is owned by Intercontinental Exchange (ICE), is facing cash shortage and other financial difficulties, signaling it might struggle to continue operations. Read More

Weekly Roundup: More prop firms down, CoinDesk CEO out (2024)

FAQs

Why is MetaQuotes removing prop firms? ›

The MetaQuotes move indicates that the company is very cautious when it comes to offering services using its platform to US clients. The two MetaTrader apps were banned on Apple's App Store in 2022 for their alleged use by fraudsters targeting the US citizens and residents.

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How many traders fail prop firms? ›

According to it, 4% of traders, on average, pass prop firm challenges. But only 1% of traders kept their funded accounts for a reasonable amount of time. While this result is not nearly as bad as the one discussed earlier, it still looks bleak for prospective prop traders.

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Is MetaQuotes a Russian company? ›

MetaQuotes Software is a Russian software company specializing in the development of software for foreign exchange trading.

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Is MetaQuotes banning US traders? ›

MetaQuotes, the developer of popular trading platforms MetaTrader 4 and MetaTrader 5, is cracking down on several prop trading firms such as Ftmo, the5ers, etc., and forcing many brokers to terminate their services (if these firms do not comply). This decision has had a negative impact on most prop traders in the US.

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How much does the average prop firm trader make? ›

In conclusion, the income of prop firm traders can vary greatly depending on several factors such as experience, performance, and the size of the firm. On average, a junior prop trader can expect to earn anywhere between $50,000 to $100,000 per year, while a senior trader can make upwards of $500,000 annually.

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Is prop trading a pyramid scheme? ›

Prop firms that give traders demo capital mirror the business models of pyramid schemes, making those a much higher risk. To limit these risks, work with a reputable, established prop firm that funds traders with real money.

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What is the oldest prop trading firm? ›

{quote} FTMO (unless you are a US citizen), The5ers, and City Traders Imperium are the three oldest prop firms, and probably the only ones with 5+yrs reputable history of reliable payouts. I'd start with those three.

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Why was MetaTrader removed? ›

There could be several reasons behind this, ranging from technical issues to policy updates. However, it's important to note that the removal of MetaTrader from the Play Store doesn't reflect negatively on the platform itself. It remains a reliable tool for traders worldwide.

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Will prop firms be banned? ›

The speculation now is that the governing bodies and regulators will put a ban on the whole prop firm industry – which is not going to happen. The prop firm industry has been alive, well and regulated for decades. It's only the online prop firm space that is yet to see regulation.

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What has happened to MetaTrader? ›

MetaTrader iOS – the MT4 and MT5 apps – have been removed from the App Store. The trading platform's desktop version is still available to download and the Google Play version hasn't been affected.