Australia based Retail FX and CFDs broker Eightcap has come out with a statement, saying that previous reports (including here on FNG) that it was cutting brokerage service to all prop trading firms is misleading.
The statement (see full text below), issued on LinkedIn and signed by Eightcap CEO Alex Howard (pictured above), explains that the company reviews its commercial and operational partnerships on an ongoing basis, and that terminating commercial arrangements is not uncommon to them or to anyone else in “the industry”. Eightcap went on to say that it is “business as usual for us”, and that it remains excited for the future of the CFD, Forex and Prop industries.
The aforementioned reports followed earlier statements made by a number of retail prop trading firms who have used Eightcap as the broker for client trades, that they were informed that they would no longer be serviced by Eightcap, and have been given until February 29 to find alternative brokerage relationships.
One of the prop trading firms, Lark Funding, saw its CEO (who goes by Matt L, @MeetMattL on X, formerly Twitter) tweet out yesterday that “Eightcap informed us this morning that as of February 29th, they’ll no longer be offering their services to props…”. Matt L has since taken down that tweet.
It seems as though according to Eightcap, the broker is indeed terminating its relationship with some prop firms, but not with others.
The statement from Eightcap comes as the retail prop trading industry as a whole is coming under fire, with a number of prop trading firms popular among the retail CFDs trading crowd ceasing operations (at least temporarily) due to either actions of their brokers or platform providers. These prop firms include Funding Pips, Funded Engineer and True Forex Funds.
The full statement issued by Eightcap on LinkedIn reads as follows:
Re: Recent Incorrect News
There have been several articles and commentators making misleading statements about our activities.
We’re extremely disappointed that certain industry participants have taken it upon themselves to do this and did not give us reasonable opportunity to comment.
We review our commercial and operational partnerships on an ongoing basis. The termination of commercial arrangements is not uncommon to us or anyone else in the industry. We have terminated relationships in the past as part of ordinary commercial activities, in similar ways, and to less fanfare.
It’s business as usual for us, the same as it was yesterday, and we remain excited for the future of the CFD, Forex and Prop industries.
Alex Howard
Chief Executive Officer, Eightcap
