Breaking: Eightcap Terminates Services for Prop Trading Firms

Melbourne-based Eightcap will change its offerings to prop trading firms by ceasing brokerage services, effective from February 29th, based on the claims of several prop trading firms. This move, which the company termed "not uncommon," followed similar steps between several proprietary trading firms and their brokerage providers.

Finance Magnates reached out to Eightcap, which has "not confirmed the accuracy, or endorsed the contents, of the article or substance of various twitter/X comments."

In a post on LinkedIn on Friday morning, the CEO of Eightcap noted: "The termination of commercial arrangements is not uncommon to us or anyone else in the industry. We have terminated relationships in the past as part of ordinary commercial activities, in similar ways, and to less fanfare."

Matt L. from Lark Funding mentioned on X: "ThinkMarkets has reassured us several times over the last few weeks that operations on their end and their relationship with MetaQuotes is solid. But, of course, we’re not going to rely on just one broker. We’re already in discussions with other brokers to see who we can work with and provide additional options to traders."

According to another account identified as Blake on X: "As of this morning, Eightcap has notified all of their prop trading partners that they will be shutting down their prop firm relationships in 2 weeks. The companies I am personally involved with are ahead of the pack and already implementing new and more beneficial alternatives for all traders across the entire industry. More news to come!"

Similarly, another proprietary trading platform, Funded Trading Plus, has been affected by Eightcap's decision. According to a post by an account identified as The Prop Journalist on Twitter, the platform has integrated ThinkMarkets to resolve this issue.

MetaQuotes Is Making the Move

MetaQuotes, the platform behind MetaTrader 4 and 5, is tightening its grip on proprietary trading firms, precipitating the termination of services for US clients. The recent fallout involves Funding Pips and brokerages Blackbull Markets and Purple Trading, Finance Magnates reported.

MetaQuotes' actions underscore the challenges of navigating US regulatory restrictions within the MetaTrader ecosystem. The termination of services for US clients by Blackbull Markets and Purple Trading highlights MetaQuotes' stringent stance regarding prop trading firms operating in the United States.

The decision to terminate services to prop trading companies stems from MetaQuotes' concerns over active US accounts. Proprietary trading firms, although operating beyond the traditional regulatory scope, are increasingly targeted due to their technical exemption from US regulations.

Elsewhere, the proprietary trading firm Funded Engineer recently postponed plans to relaunch its services. This decision comes after FPFX Technologies terminated its software licenses. Later, Purple Trading pulled out its brokerage services, prompting Funded Engineer to switch its brokerage to Blueberry Markets for all client trades.

Funded Engineer has announced refunds for eligible clients, requiring accounts to have no drawdown greater than 4%. Those with drawdowns under 4% can request refunds but will lose access to their accounts. Additionally, the company is addressing a backlog of pending payouts.

Update: This article has been updated with the response and social media post of Eightcap.