Exclusive: Prop Trading Firm FTMO Halts US Client Acquisition amid MetaQuotes Crackdown (2024)

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Exclusive: Prop Trading Firm FTMO Halts US Client Acquisition amid MetaQuotes Crackdown? ›

Amid a Crackdown on MetaQuotes, Prop Trading Firm FTMO has Stopped Acquiring New US Clients. Clients have been informed by the company of the switch to the new DXtrade platform. When trying to register using a US IP address, new traders discovered that the registration form was incomplete.

As of January 2024, FTMO has temporarily suspended the purchase of FTMO Challenges for new and existing US clients due to specific market conditions. Let's delve into the potential drawbacks for US traders and explore why turning to OFP might be a more favorable alternative.

Their main concern seems to be keeping US based traders off of their platform, if used by a broker not licensed in the US. With many prop firms not so careful at avoiding deep pocketed US based clients, this move by MetaQuotes was inevitable.

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.

In recent months, several prominent proprietary trading firms have gone out of business. This wave of closures began when regulatory authorities in the US and Canada froze My Forex Funds, a major player in the industry. Following this, True Forex Funds, Surge Trader, and Skilled Funded Traders all shut down.

The Maximum Loss limit simply states that the equity on your trading account must not drop below 90% of the initial account balance at any given time during the account duration. That means that on the Normal risk account you cannot lose more than 10% of your initial balance.

For the most part, FTMO is a reputable company with a long history. Prop firms face a few more challenges than other firms. There is therefore a small margin of error to work with. If you don't want to lose your account, you need solid trades and mostly wins.

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.

The Indian government made this decision unexpectedly. It is believed that this happened because these platforms are not registered in India and thus operate illegally. Recently, the much-appreciated trading platforms all over the world, MT4 and MT5, have been banned in India. This is a major shock for traders.

U.S. and Canadian financial regulators have shut down Toronto based prop trading firm My Forex Funds (operating at website myforexfunds.com), charging the company and its operator Murtuza Kazmi with running a $300 million+ fraud on retail traders.

What is the best prop firm in the world? ›

Statistics on Average Trader Payouts

Profit Split: The average prop firm will offer a 80-20 profit split once you become a funded trader. TFT, on the other hand, gives up to a 90% split, — even as high as 95% in some promotions — the highest in the industry.

Is forex trading legal in the US? Forex trading in the United States is legal and accessible to both institutional investors and individual retail traders. It is governed by a stringent regulatory framework that aims to protect traders and maintain market integrity.

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.

FTMO is a leading firm in the field of modern prop trading based in the Czech Republic.