FNG Exclusive… FNG has learned that Hungary based online prop trading firm True Forex Funds has ceased operating, at least temporarily, after MT4 / MT5 operator MetaQuotes terminated its trading platform licenses.
True Forex Funds becomes the second known name in the prop sector among FX and CFD traders to have its operations halted in the past few months, after US and Canadian regulators shut down Canada’s My Forex Funds last September.
True Forex Funds has been on the US CFTC’s RED List since last June, for soliciting and/or accepting funds from U.S. customers. The CFTC’s RED (Registration Deficient) List contains names of foreign (i.e. non-US) entities that appear to be acting in a capacity that requires registration with the CFTC, but they are not registered with the CFTC.
While True Forex Funds claims that they were cut off by MetaQuotes unfairly (see below), veteran FX industry observer and analyst Kathy Lien of BKTraders believes that MetaQuotes’ move might be connected with the September 2022 ban of its MT4 and MT5 trading apps from the Apple App Store, and subsequent March 2023 reinstatement.
Kathy Lien just posted the following video explaining her views regarding the three reasons why she believes True Forex Funds was shut down, and what this might mean for the prop trading industry as a whole.
True Forex Funds posted the following note on its website (which is otherwise unavailable), signed by CEO Richard Nagy, regarding its temporary shutdown:
Dear Traders
Due to a non-sense reason, MetaQuotes has terminated our licenses, and therefore, we have to freeze our services TEMPORARILY. Our team is working hard on a plan to continue providing our services.
The incomprehensible reason for the termination is using a third-party provider for equity synchronization purposes who has allegedly not connected to MetaTrader’s client terminal in a way that is fully acceptable by MetaQuotes. True Forex Funds has used the mentioned third-party service since 2021 without any complaint from MetaQuotes.
MetaQuotes did not give any prior warning, nor did they provide any chance to replace the unwanted provider, despite it being evident that in no industry is it possible to investigate your partner, provider, or any supplier’s source code to prove their legitimacy.
We would like to assure all of you that despite all the turbulence, we will never back down, and you will be able to continue your journey where it had to be stopped. Our team continuously tries to convince MetaQuotes to keep our licenses; in case of lack of success, we will try to migrate your trading accounts to a broker.
We would like to apologize for this disaster, a force majeure event that has occurred due to reasons beyond our control. Please note that the remaining payouts will be settled once the platform is unfrozen.
If the worst-case scenario occurs and we have to migrate to another broker’s server, we will face an issue with the offered symbols discrepancies, making open positions migration challenging. Please close your positions before market closure; otherwise, they will be automatically closed.
Once again, keep in mind that as soon as the workaround is implemented, you will be able to continue your trading journey with True Forex Funds. Your support means a lot to us.
We will keep you updated.
Richard Nagy
CEO
