Key Insights
- Hungary’s True Forex Funds halts operations after MetaQuotes suddenly revokes platform access
- MetaQuotes alleges unauthorized third-party integration, gave no warning before terminating licenses
- True Forex CEO says working urgently to restore services, either by convincing MetaQuotes or migrating to new broker
BUDAPEST (MarketsXplora) – Hungary-based online trading firm True Forex Funds has temporarily ceased activities after developer MetaQuotes abruptly revoked its licenses for the popular MT4 and MT5 trading platforms, according to a statement.
MetaQuotes gave no advance notice before pulling the plug, alleging True Forex used an unauthorized third-party provider to synchronize equity, according to CEO Richard Nagy.
The move leaves open positions frozen on True Forex, which offered investors exposure to forex and CFD markets via a fund model requiring no trading experience.
Nagy said the firm is urgently exploring workarounds to restore services, including potentially migrating accounts to a new brokerage. But it first aims to convince MetaQuotes to reinstate access.
True Forex has already faced scrutiny from U.S. regulators, appearing on the CFTC’s RED List of likely unregistered foreign entities illegally soliciting American customers.
Industry analyst Kathy Lien of BKTrading said MetaQuotes could be reacting to past run-ins with Apple and regulators in cracking down harder on platform usage terms.
MetaQuotes came under pressure when Apple banned its mobile apps from iOS last September before finally reinstating them in March.
The U.S. National Futures Association (NFA) also fined MetaQuotes $200,000 last December for failing risk checks on one of its platform brokers that led to customer losses.
“They don’t want to deal with that compliance headache anymore,” Lien said of MetaQuotes.
Prop trading services like True Forex Funds remain under regulatory scrutiny as well. Canadian regulators shuttered a similar firm My Forex Funds last year for illegal distribution.
True Forex said it has advised clients to close positions before automatic market closure. It plans to eventually migrate accounts once a solution is secured.