The prop trading industry faces a roadblock as Blueberry Markets, the latest broker to abandon support, restricts existing prop trading accounts to closing positions only.
In recent forex broker news, it has been reported that Blueberry Markets forex broker has stated that they will no longer work with prop trading citing the move as being in line with the overall industry trend. After receiving the directive, some firms, such as MyFundedFX and Funded Nation, disclosed that already existing accounts were mandated to close only.
The move comes shortly after the ASIC-regulated broker request prop trading firms to terminate onboarding new clients on MetaTrader platforms immediately. It is striking that the Australia-based broker no longer supports prop trading thus, all prop trading activities are suspended.
Even though the prop firm was trying to receive the official confirmation from Blueberry Markets forex broker, there was no answer yet.
According to a tweet by MyFundedFX, users' active accounts should all close by the end of the week, making existing accounts work only as closing positions. Such a decision is thought to be determined to a certain extent as a result of third-party pressure, with MetaTrader as its main target.
The CEO of MyFundedFX unveiled that the closure of this multi-asset broker has affected more than 10 prop trading companies. This move is in line with the prop trading activities of other brokers in the market, who have also taken such actions, like the decision by Axi, which indicates a broader change in brokers' direction.
The latest ruling points to a transformed competitive environment, making parts for the reason of prop trading future questionable. It emphasizes the challenges of prop trading firms and the growing role of brokers amid the regulatory landscape where everything has changed.
See Also:Funded Engineer Delays Relaunch Plans, Shifts Clients to Blueberry Markets