Exclusive FNG… FNG has learned that retail FX and CFDs broker Eightcap has informed prop trading clients that it will cease brokerage services for all prop trading firms, effective the end of February.
Eightcap’s move comes as Cyprus-based trading platform company MetaQuotes, developer of the popular MetaTrader family of platforms, has informed several of its brokerage clients that their MT4/MT5 licenses may be revoked if they do not cut off their support companies.
Behind the move appears to be an initiative by MetaQuotes to more closely control how (and by whom) MT4 and MT5 are used, in particular trying to ensure that they are only used by brokers (and those who introduce clients and trading activity to brokers such as e.g. as support firms) that execute transactions for clients in jurisdictions where they are properly licensed to do so.
Many of the support firms have taken on clients from the US, where brokers (or those providing broker introduction services) must be duly licensed by US regulatory bodies.
Trading companies that Eightcap has provided services to include Blue Guardian, Funded Trading Plus, Glow Node, Lark Funding, Skilled Funded Traders, Smart Prop Trader, The Funded Trader and UWM.
The move by Eightcap comes as other brokers, such as BlackBull Markets and Purple Trading, have already effectively shut down their respective prop trading clients Funding Pips and Funded Engineer. Another support company popular with the retail crowd, True Forex Funds, was also forced to shut down and is looking to relaunch next week.
In response, support firms are trying to add new brokerage relationships, with brokers operating platforms other than MT4 and MT5. Many reported to their clients a planned switch to brokers running cTrader.
Matt Lark, CEO of Lark Funding, posted the following tweet today on X (formerly Twitter), after earlier (February 2nd) posting that “Lark has no problem with MetaTrader. It’s normal and if customers in the US are restricted, as always we will find an alternative.”
Eightcap informed us this morning that as of February 29th, they will no longer offer their services to props. But not to worry, ThinkMarkets has assured us several times over the past few weeks that the work on their end and their relationship with MetaQuotes is solid. But of course, we are not going to rely on just one broker. We are already in discussions with other brokers to see who we can work with and provide additional options to traders. The good news is that we have two weeks to complete the migration and do it in a way that is seamless for merchants currently with Eightcap. As of now, Eightcap traders can continue to trade their valuation. Once we have more details about the migration, we’ll post announcements and updates along the way. You will not be left in the dark. It’s all part of a fast-moving industry, and while it can be a headache, rest assured that we’re working overtime to make sure everything runs smoothly. I appreciate all your support!
Eightcap (at eightcap.com) is a Melbourne-based online brokerage brand operating licensed subsidiaries in Australia, Cyprus (for the EU) and the United Kingdom, as well as offshore operations based in the Bahamas and Seychelles . We believe that they are serving prop trading clients through their offshore operations. Eightcap is controlled by Australian businessmen Joel Murphy and Joseph Jeffriess.