Another Day, Another Prop Firm Shuts Down, Meet Funded Engineer

Two days ago (July 15th 2024) Funded Engineer announced on its socials that it is ceasing all operations and is filing for bankruptcy, restricting clients the access to accounts. 

 

Funded Engineers Message to Their Community

“It is with deep regret and a heavy heart that we announce the permanent closure of Funded Engineer. Despite our extensive efforts to improve our financial situation, we have been unable to overcome the challenges we faced, necessitating the cessation of all operations effective immediately.

As part of this closure, Funded Engineer will be filing for bankruptcy. ”

 

The troubled prop firm was going through difficult times over the past months after their technology partner FPFX filed a lawsuit against Funded Engineer accusing them of fraud. This led to them to lose their brokerage partner and resulted in a broader crackdown by Metaquotes on the prop trading industry.

Now that the prop firm Funded Engineer shut down clients have no access to their accounts an no way to receive their payouts or access the money in their accounts. Also, Funded Engineer mentioned nothing about the payouts so now that the firm’s case will be handled under the bankruptcy procedure it might take years until the claims are settled. 

The reviews on trustpilot are mixed, most clients referred to Funding Engineer to be a “scam” where the support team isn’t too supportive. Well, it’s hard to have to go through this again, prop firms closing and traders getting left in the dark.

“This decision was not made lightly, and we understand the significant impact it will have on our clients, partners, and employees. We are committed to managing this process as smoothly as possible and will be working closely with our legal and financial advisors to address all outstanding matters. We deeply appreciate the trust and support you have shown us over the lifespan on Funded Engineer. 

We sincerely apologize for any inconvenience this may cause and thank you for your understanding during this difficult time.

Sincerely,

Funded Engineer”

 

This is another part of their goodbye message to their community of traders. Is it likely that they will compensate anyone who was affected by this? Or give back payouts? Not likely. So what’s left to do from here? 

Are Prop Firms an Unstable Trading Environment?

For many traders who are using prop firms as their main trading source this is a question that may come up a lot. Prop firms can be an unstable trading environment on one hand, and on the other hand they can be a life save for traders who are looking for more opportunity to grow and expand in their endeavors. Offering big accounts is sometimes much needed for traders.

Some traders never leave prop firms, and some traders do when they are able to achieve the goals they had when starting to trade with the prop firms of their choice. At the end of the day it really depends on the prop firm you choose to trade with and whether they are reliable or trustworthy enough for you.

How Should Traders Take Action Looking Forward?

Prop traders who’ve been in the market for some time must have seen the recent prop firm saga. 

“Another day, another prop firm shuts down.”

One way to be ahead of this is to not put all of your eggs in one basket, so that if your prop firm does shut down, you don’t lose practically all of your money because you left it in their account. Trade with a few prop firms just to play it safe. If a prop firm has too many negative reviews don’t trade with them.

If a prop firm has lawsuits against them (like Funded Engineer or SurgeTrader) DON’T trade with them. Do your own due diligence and research. It’s your money at the end of the day don’t take the process of putting it in a safe place lightly. 

While Funded Engineer may have come to an end, prop firms are rising from the ashes, like The Funded Trader, and some prop firms like OFP Funding, are skyrocketing like the NVDA stock is in 2024.