Key Insights
- Eightcap to stop providing brokerage to all prop trading firms from end of February
- Move comes amid MetaQuotes platform license crackdown over jurisdiction rules
- Affected prop firms racing to shift to alternative brokers and cTrader platform
MELBOURNE (MarketsXplora) – Retail foreign exchange broker Eightcap has informed prop trading firm clients it will halt services for the sector at the end of February, the latest such move in response to a crackdown on use of the popular MetaTrader platform.
In a statement issued to traders and seen by MarketsXplora, Eightcap said it would no longer provide brokerage facilities to proprietary trading companies after Feb. 29.
The Australian broker joins a series of platforms like BlackBull Markets and Purple Trading that have cut ties with prop clients following pressure from MetaQuotes, developer of the widely used MT4 and MT5 retail trading software.
MetaQuotes has moved to tighten control around use of its products in recent weeks and begun revoking licenses for brokers failing to meet its requirements – particularly around prohibiting clients from restricted jurisdictions like the United States.
Funding Pips and Funded Engineer have faced similar fates, and another prop firm favored among retail traders, True Forex Funds, has likewise been compelled to stop operations, though it is aiming to restart next week.
“While it might be a headache, rest assured we’re working overtime to ensure everything runs smoothly,” Lark Funding CEO Matt L. tweeted to clients after revealing the Eightcap pullout.
Lark Funding was one of over half a dozen prop firms affected by the Eightcap decision, spanning segments like Blue Guardian, Skilled Funded Traders, and The Funded Trader.
Many are now opting to shift towards platforms like cTrader offered by other brokers in order to maintain operations, according to trader posts and statements from brand representatives.
Eightcap, controlled by Australian businessmen Joel Murphy and Joseph Jeffriess, holds regulatory licenses in Australia, Cyprus, the UK, and the Bahamas. It did not immediately respond to a MarketsXplora request for comment.