The Recent Situation with Prop Firms and Meta Quotes' Decision for US Traders (2024)

The Recent Situation with Prop Firms and Meta Quotes' Decision for US Traders (1)

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Youssef Galal

Founder of Best2Traders | 15+ Years Trading Expertise | Market Researcher | Prop Trading | Startup Scaler for Reliable Prop Firms

Published Feb 15, 2024

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The Recent Situation with Prop Firms and Meta Quotes' Decision for US Traders (3)

In recent times, there has been a significant development in the world of prop trading firms. Meta Quotes, the company behind the popular trading platform MetaTrader, has made the decision to restrict access to their platform for US traders. This decision has caused some prop firms to face challenges and has raised concerns about the future of prop trading.

Proprietary trading, or prop trading, involves trading financial instruments using a firm's own capital. These firms hire traders who trade on behalf of the firm, aiming to generate profits. The trading platforms provided by companies like Meta Quotes are crucial tools for prop traders, as they offer a wide range of features and access to various financial markets.

Meta Quotes' decision to restrict access for US traders has had a direct impact on prop firms that relied on their platform. Some prop firms have been forced to adapt to this change by seeking alternative trading platforms or exploring other options. This situation has understandably caused concern among prop traders regarding the stability and future of prop firms.

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While the recent developments may be unsettling for some, it is important to approach the situation with a balanced perspective. The decision by Meta Quotes does not necessarily indicate that the prop trading business as a whole will become unstable. Instead, it may be seen as a filtering process that will lead to a stronger focus on regulatory compliance, trading conditions, and adherence to rules.

Regulatory bodies play a crucial role in overseeing and regulating financial markets. The recent situation with prop firms and Meta Quotes' decision highlights the importance of understanding and complying with regulatory requirements. 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. By expanding their offerings and adapting to changes in the trading landscape, prop firms can increase their resilience and mitigate potential risks associated with relying on a single platform or market.

Furthermore, prop traders themselves should not be overly worried about the future of prop firms. While the recent situation may have caused some disruptions, it also presents an opportunity for prop traders to enhance their skills, knowledge, and adaptability. By staying informed about market trends, regulatory changes, and exploring new trading platforms, prop traders can position themselves for success in an evolving trading environment.

In conclusion, the recent situation with prop firms and Meta Quotes' decision to restrict access for US traders should be seen as a catalyst for positive change within the prop trading industry. While it may cause some short-term challenges, it also presents an opportunity for prop firms to strengthen their focus on regulatory compliance and adaptability. Prop traders should approach this situation with a proactive mindset, embracing the need for diversification and continuous learning to thrive in the evolving trading landscape. Visit Match2Trade

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FAQs

The Recent Situation with Prop Firms and Meta Quotes' Decision for US Traders? ›

MetaQuotes, the developer of popular trading platforms MetaTrader 4

MetaTrader 4

MetaTrader 4, also known as MT4, is an electronic trading platform widely used by online retail foreign exchange speculative traders. It was developed by MetaQuotes Software and released in 2005.

https://en.wikipedia.org › wiki › MetaTrader_4

MetaTrader 4 - Wikipedia

and MetaTrader 5, is cracking down on several prop trading
prop trading
Proprietary trading (also known as prop trading) occurs when a trader trades stocks, bonds, currencies, commodities, their derivatives, or other financial instruments with the firm's own money (instead of using depositors' money) to make a profit for itself.
https://en.wikipedia.org › wiki › Proprietary_trading
Proprietary trading - Wikipedia
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.

Read On ›

What's going on with prop firms in the US? ›

Major industry players have been navigating significant regulatory challenges, particularly concerning their operations in the United States. The heart of the matter is the concern over prop trading platforms onboarding U.S. clients because of the industry's relative lack of regulatory oversight in the country.

Discover More Details ›

Why are brokers leaving MetaQuotes? ›

However, a recent and significant policy shift by MetaQuotes is sending ripples across the forex brokerage community. Over the past few months, MetaQuotes has tightened its grip on licensing policies, particularly impacting those operating with Grey Labels – brokers who share their platforms with other companies.

Why is MetaTrader removing prop firms? ›

MetaQuotes, the company behind the popular MetaTrader 4 (MT4) and MetaTrader 5 (MT5) trading platforms, abruptly started cracking down on prop trading companies that were using their platforms without proper licensing. Many of these prop firms were servicing US-based clients without authorization from US regulators.

See Details ›

Is 5ers accepting US clients? ›

Anyone over 18 years of age, with any level of trading experience is welcome to join The5ers as a trader. The5ers values its expansive range of traders from all over the world, of different nationalities, cultures, and skill levels.

Find Out More ›

Why are MetaQuotes banning prop firms? ›

Today, MetaQuotes decided to abruptly halt services, due to… Blackbull, like a few other brokerages, took advantage of their MetaTrader license and grey-labeled them to prop trading companies. As confirmed by Lal, the broker only allowed Funding Pips to operate on its “demo servers via MT5.”

Tell Me More ›

Are prop firms closing down? ›

The prop firm space has been exceedingly volatile over the last few months, with a number of the most known prop firms being shut down or ceasing operations. In March 2024, The Funded Trader (TFT) ceased trading and cancelled their agreements with all traders in their books.

Show Me More ›

Can I trust MetaTrader? ›

Is MetaTrader 5 a Scam? To begin with, it should be clarified that MT5 itself is in no way a scam. As explained above, MT5 itself is simply a software application that allows traders to connect to trading platforms and facilitate transactions via computers.

Explore More ›

Who is the owner of MetaQuotes? ›

Who is the founder of MetaQuotes Software? Renat Fatkhullin is the founder of MetaQuotes Software.

What happens if you lose money prop trading? ›

Proprietary trading firms often provide evaluation accounts where you prove your trading skills. Usually, you pay a one-time fee to enter this “challenge.” If you lose money during this evaluation, you won't owe anything beyond the initial fee.

Show Me More ›

What prop firm still uses MetaTrader? ›

Who's Operating and Who's Out? Finance Magnate's Prop Firms Table

Prop Firm	Open for Business	Available Platforms
Smart Prop Trader	YES	MT4. MT5, cTrader (migrating)
The5ers	YES	MT5, Match-Trader (migrating)
Crypto Fund Trader	YES	MT5, Crypto Fund Trader (CFT) Platform, Match-Trader
Audacity Capital	YES	MT4 and MT5

46 more rows

Feb 22, 2024

Read The Full Story ›

Which broker does top tier trader use? ›

Top Tier Trader, a US-based prop trading firm, has entirely scrapped MetaTrader platforms and is now solely offering services on TradeLocker, a relatively new trading platform. The prop trading firm will finish the migration of all its existing clients using MT4 and MT5 to the new trading platform by today (Tuesday).

See Details ›

Did FTMO ban US traders? ›

In what appears to be related to the latest MetaQuotes crackdown on the proprietary trading landscape, prop firm FTMO has stopped onboarding US clients, Finance Magnates has learned. New traders attempting to register from a US IP address were unable to complete the registration form.

Get More Info Here ›

What countries are banned from 5ers? ›

Please note that we cannot process payments to Traders from the following countries: Afghanistan, Burundi, Central African Republic, Congo Republic, Cuba, Crimea, Democratic Republic of Congo, Eritrea, Guinea, Guinea-Bissau, Iran, Iraq, Laos, Liberia, Libya, Myanmar, North Korea, Papua New Guinea, Somalia, South Sudan, ...

What is the future of prop trading? ›

The prop trading space is relatively new—no more than 10 years old—but growing fast. It was estimated at $6.7 billion globally in 2020 and is projected to expand at a compound annual growth rate (CAGR) of 4.2% from 2021 to 2028. Like any financial strategy, it offers significant opportunities as well as risks.

Are prop firms here to stay? ›

In conclusion, forex prop firms are legal both to own and to trade with, although largely unregulated in the online space currently. We expect to see regulation coming and strengthening in the upcoming years. If you want to stay ahead of this as a trader, ensure you're trading with a real money prop firm.

View Details ›

Are prop firms allowed in the USA? ›

Yes, prop trading firms are legit and exist as real companies. They may not be registered directly in United States but they allow citizens from there to access their funded accounts.