Another major shift has hit the prop trading industry: Seacrest Funding (Seacrest Markets / SeacrestFunded) has officially shut down its prop trading operations in 2026.

For many traders, this raises serious concerns:👉 Why did this happen—and what should you do next?

Let’s break it down clearly, and more importantly, how you can adapt moving forward.

What Happened to Seacrest Funding?

Seacrest didn’t “collapse” in the traditional sense—it made a strategic exit from the prop trading model.

• All prop trading accounts were closed on February 6, 2026
• Traders were instructed to request refunds or final payouts
• The firm is now focusing entirely on its CFD brokerage business

This marks a significant shift:👉 Seacrest is no longer a prop firm.

Why Did Seacrest Shut Down Its Prop Firm?

Several key factors explain the decision:

1. Shift to a Broker-Backed Model

Seacrest integrated its prop brand (formerly MyFundedFX) into its brokerage ecosystem and decided to focus on long-term brokerage revenue instead of payouts.

2. Rising Industry Pressure

The prop firm space in 2025–2026 has faced:

• Platform restrictions
• Lower trader success rates
• Increasing operational costs

Many firms have either:

• Shut down
• Changed rules
• Or pivoted entirely

Seacrest chose the third option.

3. Sustainability Challenges

The prop model depends heavily on:

• Challenge fees
• Trader failure rates

As more traders became profitable, the model likely became harder to sustain.

What Happens to Traders?

If you had a Seacrest account:

✅ You May Still Get Paid

• Funded traders can request final payouts
• Challenge users can request refunds (if eligible)

⚠️ But Access Is Gone

• All accounts and positions have been terminated
• No new prop accounts are being issued

👉 In simple terms: the prop program is completely over.

What This Means for the Industry

Seacrest’s exit confirms a major trend:

👉 Prop firms are becoming less stable—and more temporary.

We’re seeing:

• Closures (Funding Ticks, Seacrest, others)
• Rule changes
• Transitions to broker models

This is forcing traders to rethink their strategy.

Why Smart Traders Are Moving Toward Better Models

After events like this, traders are asking better questions:

• Is this firm sustainable?
• Are payouts reliable?
• Can rules change overnight?

That’s why many are exploring alternatives like:

👉 instant funding prop firms, which reduce:

• Time risk
• Evaluation uncertainty
• Exposure to sudden rule changes

Compare Before You Choose Your Next Prop Firm

If Seacrest taught traders anything, it’s this:

👉 Never rely on a single firm.

Before committing, it’s critical to review structured comparisons like:👉 best prop firm comparison between OFP Funding and E8 Markets

This helps you:

• Understand payout models
• Compare rules and restrictions
• Identify more stable alternatives

Key Lessons from the Seacrest Shutdown

1. Prop Firms Can Pivot Overnight

Even well-established firms can exit the model entirely.

2. You Don’t Control the Platform

Your profits depend on the firm’s decisions—not just your trading.

3. Withdraw Profits Frequently

Delays increase your exposure to risk.

4. Diversification Is Essential

Never rely on one prop firm for income.

What Happens Next?

The industry is evolving fast:

• Broker-backed models are increasing
• Weak prop firms are disappearing
• Traders are demanding transparency

Seacrest didn’t fail—it adapted.But for traders, the result is the same: you need a new plan.

FAQ

Is Seacrest Funding completely shut down?

Yes. The company has closed its entire prop trading division as of February 2026.

Why did Seacrest exit the prop trading model?

Main reasons include shifting to a brokerage model, rising costs, and industry-wide pressure on prop firms.

Will traders receive payouts?

Eligible funded traders can request final payouts, while challenge users may receive refunds.

Is Seacrest still operating?

Yes—but only as a CFD brokerage, not a prop firm.

What should traders do now?

Traders should:

• Diversify across firms
• Withdraw profits regularly
• Consider more transparent models

What’s a safer alternative to traditional prop firms?

Many traders are turning to instant funding trading models, which reduce evaluation risk.