Prop Firms Evaluation Model: The Decline of an Obsolete Program

The Online prop firm industry is changing at the speed of Light. My Forex Funds was closed and this event has made traders rethink their priorities and be more careful when choosing a firm, avoiding sketchy companies. This caution is not unfounded; traders must be wary of external players including brokers, and prop firms, among others. Because there are currently no guidelines on how prop firms must operate, new prop firms are being established every week, and clients should not trust most of these new entrants.

It is a humble undertaking to state that out of the numerous prop firms out there, very few offer genuine services to their clientele. Some people even hypothesize that regulators might flat-out ban the entire prop firm industry and this is highly improbable for the following reasons: The prop firm sector has long been available and regulated and The prop firm sector has long been available and regulated. However, the internet-based segment of the circulation industry is still to be provided with proper regulation.

True Forex Funds Shut Down: What Happened with this Evaluation Firm?

A great amount of changes affected True Forex Funds in this previous year. In February, MetaQuotes decided to pull their trading license and this caused the platform to temporarily shut down around the world. During the suspension of activities for the next three months, the clients’ accounts were locked, and thus, True Forex Funds recorded no revenue. However, by reopening for business through the affiliation with cTrader, it had a lot of losses; the company could not pay traders, and this would cost approximately a million dollar. To sum up, True Forex Funds has proved to be a worrisome case in the forex trading sector.

What once began as an innovative, prolific company that achieved high results now serves as rather a tragic example of the industry’s challenges. The proprietary trading sector is so big and all the firms that are in it may differ on the kind of ethics they adhere to. The case with True Forex Funds makes it clear that doing intensive research and having high standards for choosing a prop company is crucial. A lot of effort and the traders’ money is at risk hence traders need to be on the lookout for any regrettable activity that seeks to compromise their profits.

TFT Reopened: The Aftermath of The Funded Trader Prop Firms Temporary Shutdown

The Funded Trader known as TFT, which is a proprietary trading firm has temporarily closed due to rising cases of anomalies especially in matters concerning payout and unsatisfactory customer services. CEO Angelo Ciaramello said that he will have to temporarily close the firm website for the re-launch plan to give the company a new look and increased efficiency after it was accused of credit card fraud and unauthorized trading strategies.

This decision has raised concerns making matters worse.  Simultaneously, Skilled Funded Traders, a phony trading site, ceased operations.  The Funded Trader has reopened, but the industry’s inherent risks are still quite high. Even with its rebirth, recent occurrences have brought attention to persistent doubts and challenges in the prop industry.

 

What Does the Future Hold for the Prop Firm Industry? Will Evaluation Become Obsolete?

After My Forex Funds demise,  traders seemed to be very selective about companies they wanted to work with and preferred companies that appeared reputable. This approach is inevitable due to the recent events of firms that cannot be fully trusted. Some rumors have circulated regarding new forthcoming regulations for the prop firm industry, however, an all-out ban does not seem plausible.

While there are traditional prop firms, which were long regulated, there are numerous new and present online prop firms without regulation. It is anticipated that the future will see regulation put into force either by financial authorities or reputable firms such as OFP Prop Firm welcome this in readiness to conform to new regulations and set high standards. It has to be said that Regulation, which is the process of controlling an industry and the actors in it, is not a swift process and can take years to take form.

When it does, non-compliant firms may soon exit the market or move their business offshore to avoid detection, reminiscent this of what happened within the forex brokerage industry. Looking forward, the Evaluation model present in many prop firms today is expected to become obsolete as regulatory standards tighten and market demands for transparency and genuine financial backing grow.

OFP Prop Firm: Traders’ Key to Success

OFP Prop Firm is one of the leading names in the instant funding prop firm sector providing traders from across the globe the opportunity to access funding to the tune of £5M without the wrap. The fact that OFP has tens of thousands of traders sign up every month is making room for such opportunities in the trading sphere, which is a sign of development. OFP has been prestigious for its clear system and is well known in the forex industry for providing excellent services. Each trader may obtain up to £300 000 available in OFP accounts while specific models can receive up to £200 000.

From its scaling plan, OFP allows traders to control up to £5M, which means a considerable amount of funds will be available to fund and develop trading conduct. That is why traders can use OFP as their funding partner with confidence that the company will remain an active participant in the market for multiple years. The continued success ensuing from being an OFP-certificated entity proves the company’s transparency and reliability in maintaining a secure platform for the growth of traders.