Smart Prop Trader Changes Brokers, Platforms after Crackdowns

Prop trading firm Smart Prop Trader announces broker changes and new cTrader platform integration following Funding Pips closure and sector uncertainty.

Key Insights

  • Smart Prop Trader switching brokers and adopting new cTrader platform amid prop trading sector shakeup
  • Funding Pips closure highlights regulatory gaps around client fund protections in prop trading
  • Industry expects increased oversight from UK/EU/global authorities in response to controversies

LONDON (MarketsXplora) – Smart Prop Trader, a well-known proprietary trading firm, announced Thursday it will shift operations to new brokers and adopt the cTrader platform amid recent upheaval in the prop trading sector.

In a statement on its website, the UK-based company stated the changes intend to boost transparency and ensure a seamless client experience. Smart Prop Trader has purportedly been arranging the transition for many weeks and made headway preparing infrastructure and systems for integration with the new partners. Additional specifics will follow in the short-term pending finalization of agreements.

The pivot follows turbulence for retail prop trading companies which farm out firm capital to home traders, with potential payouts up to 90% of gains.

Last September, a CFTC lawsuit alleged My Forex Funds fraudulently solicited $7 million from customers. The case underscored lacking oversight around retail prop firms’ advertising and investor protections.

Industry anxiety ramped up as Funding Pips – which handled over $50 million in client funds – abruptly halted operations this month. The surprise move left hundreds of traders disconnected from accounts and profits owed. Critics questioned the viability of existing regulatory frameworks if such closures can unfold unchecked.

True Forex Funds additionally grappled with lost MT4/MT5 licenses after MetaQuotes severed ties. The Hungary-based company now rushes to integrate trader accounts into cTrader Web platform infrastructure before its tentative relaunch in Q2 2024.

UK, EU and global watchdogs calibrate responses in light of recent controversies.

“Regulators realize more safeguards may be necessary around client funds and transparency,” explained analyst Stephen Ethan of MarketsXplora. “We could see a shakeup where firms unable or unwilling to comply exit the arena.”

Some speculate coming changes could restore credibility to legit operations through stricter supervision. “It’s in everyone’s interests long-term,” said industry commentator David Owens. For now, clients await Smart Prop Trader’s next update as the prop trading landscape transforms.

Samson Ononeme

Meet Samson Ononeme, a dynamic writer, editor, and CEO of marketsxplora.com. With a passion for words and a sharp business acumen, he captivates readers with captivating storytelling and delivers insightful market analysis.

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