True Forex Funds Has Permanently Shut Down Due to Financial Insolvency 

Prop trading firm “True Forex Funds” had ceased all operations as of May 13. It really seems like there’s a new prop firm shutting down every other week! From the outside it looks like complete chaos. Prop firm’s reputation as a whole is at an all time low because of the prop firms shutting down after denying payouts or just not giving them to clients. 

 

Let’s dive into our theory for why this is happening. Well, what happened is that in the past couple of years more and more prop trading firms have been opening, but the number of traders hasn’t risen by that much (at least not enough to give all these prop firms enough clients). There are over 200 prop firms today, meaning there’s A LOT of competition.

 

Traders that use prop firms are not directly trading with the market so all of their profits are being paid to them out of the firm’s pocket. If there are too many profitable traders and not enough people failing the evaluation challenges the company is at a loss and eventually won’t have a way of paying out their profitable traders. 

 

So how can prop firms bring more traders to pay their employees, traders, and whatever they need money for? Easier rules! Prop firms understand that we’re in a fast paced world and if they won’t keep up they won’t succeed in the industry. Everyone wants everything here and now, so prop firms start easing up on the rules so that people will buy their challenge accounts. Since the rules are easier to follow there are more traders passing these challenges and more traders getting funded and more traders getting payouts.

 

And since the prop firms are paying everything out of pocket, they can’t survive all of these payouts, so they eventually close. Prop trading is not about easy rules yet today every firm is focused around who has the biggest leverage or highest profit splits. It’s all to bring new traders on board, beware because it won’t last. 

 

What Happened to True Forex Funds?

 

True Forex Funds had a rough year, in February Metaquotes terminated their trading license which caused a temporary global shut down. CEO Richard Nagy called on Metaquotes decision saying it was irrational and incomprehensible. For three months clients’ accounts were frozen and TFF had no income. When they finally partnered with cTrader and resumed operations, the damage got too big. There are more than 300 payouts owed to traders (estimated at 1.2 Million dollars!). 

 

In the end, True Forex Funds became a cautionary tale in the world of forex trading. What was once hailed as a beacon of innovation and success now serves as a sobering reminder of the risks inherent in the volatile market. The legacy of True Forex Funds lives on not in triumph, but in the hard-learned lessons that shape the future of the industry.

 

What Should True Forex Funds’ Traders Do Now?

 

The proprietary trading sector is extensive, with varying ethical standards among firms. True Forex Funds’ case underscores the need for thorough research and due diligence. Traders must exercise caution to protect their investments and potential gains.

 

TFF shutting down will be a turning point for all prop firms, tighter rules, harder challenges etc… But, fortunately, prop firms aren’t going anywhere soon, and neither is OFP Funding. We sincerely welcome any trader who has been affected by the recent news in the prop firm industry to join us and become a real profitable trader. Start trading today with a real prop trading firm.