Australia-based Retail FX and CFDs broker Eightcap has issued a statement, saying previous reports (including here about FNG) that it is cutting brokerage services across all trading firms are 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 the termination of commercial agreements not unusual for them or anyone else in the “industry”. Eightcap went on to say that it is “business as usual for us” and that it remains excited about the future of the CFD, Forex and Prop industries.
The aforementioned reports followed earlier statements by some retail trading firms that used Eightcap as a broker for client transactions that they were told they would no longer be served by Eightcap and given until February 29 to find alternative brokerage relationships.
One of the trading firms, Lark Funding, saw its CEO (who goes by Matt L, @MeetMattL on X, formerly Twitter) tweet yesterday that “Eightcap informed us this morning that as of February 29 , they will no longer be offering their services on stage…”. Matt L has since retracted that tweet.
It appears that according to Eightcap, the broker does terminate its relationship with some backers but not others.
Eightcap’s statement comes as the retail commodities industry as a whole is under fire, with a number of commodities trading firms popular with the retail CFD crowd going out of business (at least temporarily) due to either actions by their brokers or platform providers. These support companies include Funding Pips, Funded Engineer and True Forex Funds.
The full statement released by Eightcap on LinkedIn reads:
A: Recent fake news
There have been several articles and commentators making misleading statements about our activities.
We are extremely disappointed that some industry participants took it upon themselves to do this and did not give us a reasonable opportunity to comment.
We review our commercial and business partnerships on an ongoing basis. Termination of commercial agreements is not unusual for us or anyone else in the industry. We have ended relationships in the past as part of normal business activities, in similar ways and with less fanfare.
It’s business as usual for us, as it was yesterday, and we remain excited about the future of the CFD, Forex and Prop industries.
Alex Howard
CEO, Eightcap