The5ers, a proprietary
trading firm, has decided to temporarily cease onboarding new traders in the US amid regulatory ambiguity. The company’s action arrives in response to the evolving regulatory
landscape surrounding the participation of US traders in the proprietary
trading space.
Citing the need for clarity on the legal
implications concerning proprietary trading in the US, the firm
emphasized ensuring compliance with regulatory requirements. Besides that, The5ers reassured its US clientele that
efforts are underway to update guidelines to meet the needs of traders in the US.
In a post on X, the company mentioned: “Due to
recent events, we have made the difficult decision to suspend onboarding new US
traders. This measure will remain in effect until we have a clearer
understanding of the legal implications surrounding US individuals trading for
prop funds.”
Source: X
The company has urged patience as it works to adapt to
regulatory changes and provide clarity for its users in the region. The5ers’ decision
reflects ongoing efforts by proprietary firms to address the regulatory
uncertainties in the sector.
Addressing possible misunderstandings among its
users, The5ers clarified a concern by one of its users about a communication
shared earlier. It acknowledged the challenges in its decision due to the
turbulent times in the proprietary trading sector. The5ers highlighted the dynamic nature of its
legal guidance.
Source: X
US Regulatory Scrutiny Impacts MetaTrader Licensees
The regulatory scrutiny against leveraged trading
services and CFDs has intensified in the US. A recent decision by MetaQuotes to enforce restrictions on proprietary trading firms using MetaTrader
licenses has sent shockwaves through the industry.
Blackbull Markets, a brokerage offering grey-labeled
MetaTrader services, was compelled to cut ties with Funding Pips due to the
presence of active US accounts. While not publicly acknowledged by MetaQuotes, this move reflected the company’s stance on compliance with US regulations.
The termination of services to Funding Pips
underscored the challenges faced by brokers operating in the grey label space.
While Blackbull Markets facilitated simulated trading for Funding Pips via MT5
demo servers, the presence of US clients triggered the abrupt end of their
partnership.
Similarly, Smart Prop Trader recently announced its plans to migrate to multiple new brokers and integrate the cTrader trading
platform. This step came amidst regulatory scrutiny
targeting prop trading firms.
Proprietary trading, which allows traders to leverage company funds in live markets, has traditionally
operated outside the scope of stringent financial regulations. However, recent
developments, including the lawsuit against My Forex Funds by the US commodities
regulator, have thrust proprietary trading into the regulatory spotlight.
The5ers, a proprietary
trading firm, has decided to temporarily cease onboarding new traders in the US amid regulatory ambiguity. The company’s action arrives in response to the evolving regulatory
landscape surrounding the participation of US traders in the proprietary
trading space.
Citing the need for clarity on the legal
implications concerning proprietary trading in the US, the firm
emphasized ensuring compliance with regulatory requirements. Besides that, The5ers reassured its US clientele that
efforts are underway to update guidelines to meet the needs of traders in the US.
In a post on X, the company mentioned: “Due to
recent events, we have made the difficult decision to suspend onboarding new US
traders. This measure will remain in effect until we have a clearer
understanding of the legal implications surrounding US individuals trading for
prop funds.”
Source: X
The company has urged patience as it works to adapt to
regulatory changes and provide clarity for its users in the region. The5ers’ decision
reflects ongoing efforts by proprietary firms to address the regulatory
uncertainties in the sector.
Addressing possible misunderstandings among its
users, The5ers clarified a concern by one of its users about a communication
shared earlier. It acknowledged the challenges in its decision due to the
turbulent times in the proprietary trading sector. The5ers highlighted the dynamic nature of its
legal guidance.
Source: X
US Regulatory Scrutiny Impacts MetaTrader Licensees
The regulatory scrutiny against leveraged trading
services and CFDs has intensified in the US. A recent decision by MetaQuotes to enforce restrictions on proprietary trading firms using MetaTrader
licenses has sent shockwaves through the industry.
Blackbull Markets, a brokerage offering grey-labeled
MetaTrader services, was compelled to cut ties with Funding Pips due to the
presence of active US accounts. While not publicly acknowledged by MetaQuotes, this move reflected the company’s stance on compliance with US regulations.
The termination of services to Funding Pips
underscored the challenges faced by brokers operating in the grey label space.
While Blackbull Markets facilitated simulated trading for Funding Pips via MT5
demo servers, the presence of US clients triggered the abrupt end of their
partnership.
Similarly, Smart Prop Trader recently announced its plans to migrate to multiple new brokers and integrate the cTrader trading
platform. This step came amidst regulatory scrutiny
targeting prop trading firms.
Proprietary trading, which allows traders to leverage company funds in live markets, has traditionally
operated outside the scope of stringent financial regulations. However, recent
developments, including the lawsuit against My Forex Funds by the US commodities
regulator, have thrust proprietary trading into the regulatory spotlight.
