Recently, MetaQuotes terminated True Forex Funds’ trading license, causing TFF’s global shutdown. As a result, the prop firm has frozen all trading services for existing and new clients. While Richard Nagy – the CEO – called MetaQuote’s decision incomprehensible and irrational, True Forex Funds is working on an alternative to restarting its services. MetaQuotes is the developer behind leading trading platforms Meta Trader 4 and Meta Trader 5.
An official statement from Nagy stated:
“Due to a non-sense reason, MetaQuotes has terminated our licenses, and therefore, we have to freeze our services TEMPORARILY. Our team is working hard on a plan to continue providing our services.”
The statement continues to state that TFT’s partnership with an unregulated broker led MetaQuotes to suspend the prop firm’s license.
As per MetaQuotes, the respective broker does not meet the official MetaTrader Client Terminal guidelines. TFF’s statement further explains that MetaQuotes did not give any prior warning or notice before enforcing the termination.
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Possible Reasons For True Forex Funds Shutdown
Recently, MetaQuotes released a new update to target unregulated brokers for the Meta Trader 5 platform. According to MetaQuotes, True Forex Funds’s third-party broker does not follow the necessary practices to connect to Meta Trader’s client terminal.
While TFF has worked with the same broker since 2021, the prop firm may look for an alternative soon. This update may cause other unregulated prop firms to witness similar operational challenges.
Additionally, there were several allegations against TFF’s CEO after a local tax authority investigated the prop firm’s operations.
True Forex Funds Termination Updates
After the shutdown, True Forex Funds is actively trying to resume its operations. As per Nagy’s statement, TFF is communicating with MetaQuotes to revoke the license termination.
Of course, the prop firm may look for alternative brokers if MetaQuotes does not agree to TFF’s request. In such an event, all trading accounts will migrate to a new broker. Nagy further goes on to state that the prop firm will not process any payouts until their accounts are unfrozen.
For now, TFF seems committed to resolving the issue as soon as possible. For worst-case scenarios, Nagy has requested traders to close all open positions before the market closure. In the event of broker migration, traders may lose their payouts due to instrument compatibilities.
While the ‘temporary halt’ may continue for several days, the prop firm is actively seeking ways to reinstate the license or partner with a different broker.
Is True Forex Funds Legitimate?
While these are unexpected events, we hope True Forex Funds is a legitimate prop firm. Of course, these unfortunate events raise concerns about legitimacy, unethical practices, and regulatory compliances in the prop firm industry. As prop firms continue to face regulatory scrutiny, self-regulation, broker partnerships, and transparency become crucial in the continuously evolving forex market.
As a reputable MetaTrader forex prop firm, FT takes extra steps to ensure our industry-leading broker partners comply with MetaTrader’s regulatory guidelines. In fact, we have multiple brokers available for brokers to trade in different countries.
