While the arrival of retail trading is still largely rising, it did not happen in a rising tide that raises all vessels.
Continuing a somewhat worrying trend, another Prop company has closed its virtual doors, this time it promotes capital in the United Kingdom.
It was founded just a year ago by Managing Director Mitchell Ali, who is also the founder of the online FX Platform Apex Partners Group and based in London, Propel Capital essentially accused competition for the shutter.
The propel Capital website (at propelcapitalgroup.co.uk) is now down and the company posted the following note on its Twitter Feed earlier today.
Promotes capital
Dear remarkable merchants and partners,
Today, I have made the extremely difficult decision to finish capital as you know. During the last 14 months of our launch, I have repeatedly repeated the message that we were here to build a viable business that could last for many years.
However, the huge volume of competition in our market has led to a position where I believe that the escalation of the business would remain against our goal of sustainability. As you have probably noticed, businesses across the industry have significantly increased their offers, with higher discounts and relaxed rules. I do not believe that we can compete with these offers without selling loss evaluations that we refuse to do.
Therefore, we decided to move away from the market with immediate power. We will temporarily stop all the functions while deciding on our next steps. We will no longer process payments and all commercial activities will stop. While this may be surprising for many, we wanted to publicly deal with our decision to complete. Of course, we could eradicate as many other businesses as they have done and we will probably continue to do, but that was something we promised to our traders we will never do.
In the coming weeks, we will wait to see if another person or company would like to continue the brand. After that, we will begin to offer returns to those who qualify.
Stay patiently with our support staff while browsing these next steps. We will announce further updates on the Discord channel, x page and by email.
I would also like to publicly thank every member of the support staff, the influenced, the member of the Technology Team and, of course, every trader who has worked with us for the last 14 months. Without you, none of them would be possible.
I am sorry that we could not promote the industry leader I had targeted when we started, but I hope you understand my decision to support the values we started at the beginning of our journey.
Mitchell Ali
Chief executive
Propel Capital Group