MetaQuotes, the developer behind the widely-used MT4 and MT5 trading platforms, has escalated its regulatory oversight, leading to significant repercussions for proprietary trading firms and brokers, particularly those servicing US clients. Among the affected, FTMO has been notably absent from the MT5/MT4 mobile server, hinting at a ban by MetaQuotes.
FTMO responded to the situation with a website notice about scheduled maintenance, potentially masking the deeper issue of MetaQuotes’ intervention. Similarly, The5ers prop trading firm has paused the onboarding of new US traders, citing the current regulatory landscape’s uncertainties as the reason for their cautious stance.
The industry felt a ripple effect as Matt Lark, CEO of Lark Funding, announced via social media that Eightcap, an Australian broker, would cease servicing his and other prop firms by the end of February. In contrast, reassurances from ThinkMarkets offer some firms a glimmer of hope amidst the tightening regulations.
Alex Howard, CEO of Eightcap, expressed his disappointment over the misleading narratives surrounding his company’s decisions, emphasizing that such operational reassessments are standard practice within the industry. Despite the changes, Howard assures that it’s business as usual at Eightcap, with a continued focus on the CFD, Forex, and Prop trading sectors.
The tightening grip of MetaQuotes has not only led to the cessation of services for some but also prompted FPFX Technologies to terminate its agreement with Funded Engineer, accusing the firm of inflating payout figures. Funded Engineer, however, pointed out that Purple Trading’s suspension of MT4 and MT5 services for all prop firms is a broader issue affecting the entire community.
Adding to the cascade of regulatory challenges, True Forex Funds announced a temporary halt to its operations following MetaQuotes’ termination of its licenses. This series of events underscores the growing scrutiny and regulatory challenges facing the prop trading and brokerage industry, signaling a potentially transformative period for market participants.
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