Key Insights
- Dubai prop trading firm Funded Engineer tackling fallout after tech provider and broker suspended services
- Comes amid fraud allegations from back-office software maker FPFX, claims company can’t discuss publicly
- Funded Engineer working to restore trader access within a week using replacement tech and brokers
DUBAI (MarketsXplora) – Dubai-based financial trading firm Funded Engineer said over the weekend it aims to restore services within days after its main technology provider cut ties amid allegations of fake trading schemes.
Funded Engineer disclosed in online updates that broker Purple Trading had suspended trading terminals for the company and industry peers as of Monday, following last week’s cancelled license deal with back-office software maker FPFX Technologies.
Florida-based FPFX had accused Funded Engineer of fabricating revenue through wash trading and fake client accounts, claims the prop trading firm said it is treating seriously but cannot discuss in detail as a potential legal case.
In updates to clients and followers, Funded Engineer said replacement brokers and trading infrastructure should be in place “within one week” as it races to minimize disruption after the FPFX fallout.
The prop shop previously relied solely on Purple Trading to keep costs down but can “easily reintegrate” other brokers it is now lining up like ThinkMarkets or Blueberry Markets, Funded Engineer said on Twitter.
Funded Engineer said it was developing its own admin systems separately before FPFX canceled its license deal, having been set to phase out reliance on that provider’s back-office technology over coming months.
The prop trading sector blossomed during pandemic lockdowns with retail traders offered funding to bet markets under profit-share deals with firms like Funded Engineer. But regulators warn newbie traders face risks from market volatility and potential “fake gurus”.
Prop trading services span education packages to capital allocation from providers now drawing increasing scrutiny over marketing tactics, compliance and performance claims given high risks.