Smart Prop
Trader, a prop firm offering funded trading accounts, announced it will cease
accepting new traders as it prepares to wind down operations by year-end. Although
the company promises to introduce a new product, for now, it is just another
firm disappearing from the rapidly evolving proprietary trading sector.
Prop Firm Smart Prop
Trader Sets December Exit Date
“Smart Prop
Trader will no longer onboard new traders,” the company commented in a social
media post. “Smart Prop Trader is committed to doing the right thing by
prioritizing fairness, transparency, and respect for our traders and provide
extra time for traders to earn payouts.”
The
company, led by CEO Blake Olson, will continue supporting existing traders
through December 29, 2024, maintaining regular payout schedules and offering
refunds to qualifying November account holders.
“We’re
proud to take this responsible and trader-first approach, ensuring your trust
is honored as we prepare for what’s next,” the proprietary firm commented
on X, presenting the closure of its operations as though it was a positive
development.
Important Announcement from Smart Prop TraderAs of November 27, 2024, Smart Prop Trader will no longer onboard new traders. We want to express our deepest gratitude for your trust, dedication, and support for this amazing trading community!Unlike a typical prop firm closure,…
— Smart Prop Trader (@SmartPropTrader) November 28, 2024
The firm
has implemented a structured exit strategy:
- Current
traders can continue operations through December 29 - November
2024 account holders at break-even or above qualify for full refunds - Accounts in
good standing post-December 29 will receive individual resolution plans
Smart Prop
Trader hints at future developments, suggesting a potential pivot that could “redefine the greater trading industry,” with announcements expected
in the coming weeks. However, the details about the potential new venture were
not provided.
According
to industry
sources, at least 50 prop trading firms ceased their operations this year.
“This wave
of closures began when regulatory authorities in the US and Canada froze My
Forex Funds, a major player in the industry,” FunderPro’s Alex Zanutto wrote in
an op-ed for Finance Magnates. “Following this, True Forex Funds, Surge Trader,
and Skilled Funded Traders all shut down.”
Not the First, and
Certainly Not the Last
Prop
trading firms have been emerging and disappearing at a rapid pace in the past
year. Smart Prop Trader has now joined the growing list of firms unable to
survive in this highly competitive market.
In late
September, Finance Magnates reported that Funded Friends, a prop trading
firm founded earlier this year, announced it would cease operations and be
acquired by competitor TradingFunds. The announcement was made by CEO Arjo
Janssens.
Just a
month earlier, Funds For Traders informed its users that it would also be
shutting down. The company attributed the suspension of its services to
Eightcap’s decision to stop supporting the MetaTrader 4 and MetaTrader 5
platforms for prop trading.
Around the
same time, Karma Prop Traders also announced its closure. The firm’s founder,
Eshan Balapatabendi, stated that while he “had good intentions,” he
faced “roadblocks” that made the business “unsustainable.”
Despite receiving positive reviews, Karma Prop Traders lasted only two months.
Balapatabendi blamed liquidity issues for the firm’s downfall, accusing “cheaters” of contributing to its closure.
Over the
summer, Funded Engineer, another struggling prop trading firm, announced the “permanent closure” of its operations, effective immediately. The
company revealed its decision to file for bankruptcy through its official
social media channels.
“Despite our extensive efforts to improve our financial situation, we have been unable to overcome the challenges we faced, necessitating the cessation of all operations effective immediately,” the announcement stated. “As part of this closure, Funded Engineer will be filing for bankruptcy.”
This article was written by Damian Chmiel at www.financemagnates.com.
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