Last week,
Fundedlions disappeared from the rapidly changing map of prop firms. CEO Noman
Iqbal asked users not to access their accounts for a few days as the company
would be migrating to MetaTrader 5.
Why Prop Firm Fundedlions
Suspended Operations
In a letter
addressed to clients, Iqbal states that the technology provider Dominion
Markets is allegedly responsible for the company’s problems. According to the
CEO, this is not the first time Fundedlions has been “attacked and
blackmailed” by its business partner.
Explanations
posted on the company’s official Discord reveal that Dominion Markets recently
quadrupled the cost of creating an account, adding “unreasonable”
additional fees.
“This
week, they crossed the line by billing us again for active accounts we had
already paid for. This has made it extremely challenging for us to continue
operating on their platform,” Iqbal explained.
@Fundedlions became another #propfirm that suspended its operations. It is currently in the process of migration to #MetaTrader5 pic.twitter.com/Zyumyg6bIO
— Damian Chmiel (@ChmielDk) September 10, 2024
Dominion
Markets is an FX/CFD broker with offices in Dubai, Cyprus, and India. Its offering includes the cTrader platform, which prop firm clients have likely used until now.
Due to potential liquidity maintenance issues, Fundedlions has decided to switch to a different platform over the next few days. According to the CEO’s information, this will be MetaTrader 5.
“We
strongly advise our traders to pause trading on their accounts for now,”
added Iqbal. “Rest assured, we have saved all client data, and we
anticipate completing the migration within 7 working days.”
The message
was published on September 6 (last Friday), giving Fundedlions until next
Monday to fulfill its promise on time.
Acquisitions, Closures,
and Strange Withdrawal Requirements
As
mentioned at the beginning, the prop trading industry is changing dynamically.
Some firms are failing, and new ones are almost immediately appearing in their
place.
A few weeks
ago, Finance Magnates reported that UK-based Indigo Trader Funding
officially suspended operations as it “failed in this business
endeavor.” The official announcement came only a day after the company’s
name was officially removed from the company registry. It applied for the
strike-off on August 12.
AnnouncementOfficial Statement pic.twitter.com/G166F7IRVy
— Indigo Trader Funding (@IndigoFundingUK) August 20, 2024
A few days
later, broker AXE acquired prop trading firm Forex Funder, which had 6,000
active clients and 600 funded accounts. The acquisition was valued at “a
few million” dollars.
The
acquisition of The Forex Funder came as part of an ongoing trend of buying out
distressed prop trading firms. Recently, Sway Funded acquired the now-closed
Karma Prop Traders. Astra Capital also surprised the industry by revealing its
intentions to “acquire every prop firm that closes or suspends operations,
taking on all of their traders” and introducing them to its platform.
There was
also considerable discussion about Apex Traded Funding’s latest idea, which
changed the rules for client withdrawals. Allegedly, the prop firm began
requiring clients to make significant efforts, potentially violating the
privacy of their strategies and themselves. Traders were supposed to record all
their screens while investing and have cameras constantly pointed at their
faces.
This article was written by Damian Chmiel at www.financemagnates.com.
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