Eightcap Halting Brokerage Services for Prop Firms!

Eightcap has officially announced the halting of brokerage services for all prop trading firms, effective from the end of February. This decision follows a warning from MetaQuotes, the Cyprus-based developer of the widely used MetaTrader platform family. They are threatening to revoke MT4/MT5 licenses for brokers associated with prop trading firms.

The initiative behind MetaQuotes’ strict orders appears to be an effort to exercise greater control over the use of their platforms. The company aims to ensure that MT4 and MT5 are exclusively utilized by brokers and entities introducing clients and trading activities to brokers—particularly those who adhere to proper licensing in the jurisdictions where they operate.

A key concern driving these actions is the involvement of prop trading firms in acquiring clients from the United States. In the U.S., regulatory bodies mandate brokers and their service providers to hold valid licenses. MetaQuotes, in collaboration with other brokers, is working to ensure compliance with these regulations.

Eightcap Halting Brokerage Services for all Prop Firms – Uncertainty Prevails

Among the prop firms affected by Eightcap’s decision are Blue Guardian, Funded Trading Plus, Glow Node, Smart Prop Trader, The Funded Trader, etc. The move mirrors similar actions taken by other brokers like BlackBull Markets and Purple Trading. These brokers have already ceased operations with their prop trading clients, Funding Pips and Funded Engineer. Additionally, True Forex Funds has temporarily halted operations and aims to resume them next week.

So, in response to the upheaval, prop trading firms are establishing new brokerage relationships with platforms alternative to MT4 and MT5. Several companies have informed their clients of a planned transition to brokers operating with the cTrader or DXtrade platform. This is a strategic move to navigate the evolving industry of regulatory challenges and platform restrictions. The industry is witnessing a paradigm shift as market participants adapt to these changes.

Uncertainty prevails in the prop industry, but many prop firms have already made the arrangements to shift to different brokers to accommodate their traders!

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