Eightcap shuts door on prop firms, ThinkMarkets to follow

MetaQuotes, the developer of the MT4 and MT5 trading platforms, continues to tighten its oversight, directly impacting brokers and proprietary trading firms servicing US clients.

The stricter approach has led to ceasing services by several prop firms, including a move by Australian broker Eightcap, which announced it will stop serving proprietary trading firms by February 29.

The decision has caught many in the industry off guard, prompting firms to seek alternatives as soon as possible. Matt Lark, CEO of prop Lark Funding, shared the news on X, stating that while Eightcap’s decision is a setback, they’ve received reassurances from ThinkMarkets about their operations and “solid relationship” with MetaQuotes. However, Lark said the prop trading industry has no option but to diversify their brokerage relationships and assured traders that plans are in place to ensure a seamless transition from Eightcap to new brokers.

The community reaction has been a mix of concern and confusion. Discussions on X reflect a sense of urgency to adapt to these changes, with timelines for compliance varying according to different sources. Some speculate that all brokers in violation of jurisdictional regulations must rectify their status by as late as June 30.

The impact of these policy changes is broad, affecting prop firms and their clients globally. Top Tier Trader, for example, has reportedly banned traders from several countries, including the UK, India, and Germany, offering refunds but withholding payouts.

Meanwhile, prop firms like The5ers and Smart Prop Trader have openly discussed the challenges posed by brokers’ reluctance to onboard third-party clients, a practice now under scrutiny. These firms argue that the indirect relationship between prop traders and brokers complicates compliance with regulatory standards. According to them, these developments are prompting a shift towards brokers that can accommodate third-party arrangements, such as cTrader.

Affected prop firms that use Eightcap and are seeking new brokerage services include names like Blue Guardian, Funded Trading Plus, and The Funded Trader. Among those relying on ThinkMarkets are AquaFunded, Bespoke, Forex Capital Funds, Goat Funded Trader, Instant Funding, Lark Funding, Ment Funding, My Flash Funding, My Funded FX, Skilled Funded Traders, Swift Funding, The Funded Trader, and Traddoo.

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