Indigo Trader Funding first suspended its Discord, then stopped engaging on other social media channels. It finally filed an application to strike the company off the UK's official register. This is the latest prop firm to collapse recently, potentially leaving clients without their due funds.

Indigo Trader Funding's Unexpected End

As recently as late last month, Indigo was conducting business as usual, advertising its products and services on popular prop firm channels, including Discord and X (formerly Twitter). However, activity on the latter platform suddenly ceased on July 23, where previously there had been numerous posts.

Progress is not about immediate success but consistent effort📈

Every successful journey begins with a single trade.

Stay patient, stay disciplined, and keep pushing forward, no matter how incremental the progress may seem.#PropTrading #PersistencePays #IndigoTraderFunding pic.twitter.com/FAGGfUJ6c6

— Indigo Trader Funding (@IndigoFundingUK) July 23, 2024

A few days later on Discord, Lucas Thomas, the president of the company founded at the beginning of this year, announced the suspension of all communication through this platform, apologizing for the “slow support response” in recent weeks. All support issues were redirected to an email address, and the ability to apply for free accounts was suspended.

After several weeks of silence, the official UK companies register showed that Indigo Trader Funding Limited filed an application on August 12 to strike the company off the register. The current entry indicates that the official date for the company's removal is August 20.

🚨 @IndigoFundingUK 🚨 You need to address this ASAP.

😕 Have you guys closed up shop or sold the rights. pic.twitter.com/bOScgd3LNd

— The 1% 🇦🇪 (@RB_Tradingltd) August 14, 2024

Companies House also shows that this wasn't the first UK project for Thomas, who is under 30. In 2021, he launched Thomas Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Trading, and in 2022, Woofly and L&N. However, Woofly and L&N disappeared from the market as quickly as Indigo.

It's worth noting that like many other prop firms, Indigo Trader Funding didn't operate independently but was a promoter for challenges organized by CFD broker Eightcap. While many firms in this sector are deciding to enter the proprietary trading market directly, Eightcap is focusing on promotion through smaller entities that, as recent events show, are not always stable or reputable.

Whether users have lost their funds is currently unknown, but financial influencer Bernd Skroupinski claims to have $27,000 in profits on one of his Funded accounts managed by Indigo.

I am up $27,000 on my $500k @IndigoFundingUK prop account, but received an letter that they submitted AN APPLICATION TO STRIKE OFF!

I would require an official statement! Does the community know more?

Is this another prop firm going down the drain...? pic.twitter.com/aF8rhew3RP

— Bernd Skorupinski (@BerndSko) August 14, 2024

More Prop Firms Collapse

The last time we reported on a prop trading firm's collapse was... just three days ago. On Monday, August 12, news broke that Karma Prop Trader was ending operations, with its owner blaming “cheaters” who exploited a loophole in the system and rules of the offered challenges.

A month earlier, Funded Engineer also decided to close its operations, unable to stay in the market despite attempts at “strategic restructuring.” In May, True Forex Funds left the industry, and in March, SI World made a similar move.

FunderPro believes that over 50 different firms may have dropped out of the prop trading game since the beginning of the year, showing the scale of the problem.

“The issue plaguing the industry is the ‘sell as much as you can’ approach, often coupled with the promise of easy money. The reality is that trading requires hard work and time to master, and not everyone will succeed. Just as not everyone can qualify for the Olympics, not everyone is meant to be funded,” Zanutto commented.

The latest survey seen by Finance Magnates showed that in the prop industry, an average of 60% of all clients lose funds, with each investing an average of $4,300. To increase their chances of winning, they use offers from two, three, or even five prop firms simultaneously.