Prop Trading Grapples with Instability: Another Firm Halts Purchases for US Clients
The proprietary trading firm Alpha Capital Group has joined some of its peers in the industry in suspending purchases for clients in the US. According to the company’s statement on X, this step is in response to recent market developments in the region.
Prop Trading Faces Regulatory Hurdles
Alpha Capital Group has decided to suspend purchases from both new and existing clients in the US, effective immediately. The firm is reportedly seeking clarification through appropriate channels to ensure certainty regarding this matter. While the suspension impacts clients in the US, operations in other jurisdictions are not affected.
Alpha Capital Group@AlphaCapitalUKLut 19, 2024Since our launch, our unwavering commitment to building a platform and environment to sustain not only our businesses longevity but also a place our clients can rely on.
Due to the recent market development in the United states (US) we have made the decision to suspend…
Alpha Capital Group officially communicated that it remains committed to its clients and is actively pursuing legal clarification from relevant authorities in the US. The firm aims to gather evidence to reopen services for clients in the US when deemed feasible. Until then, the company reassured clients in other jurisdictions that business will proceed as usual.
MetaQuotes' recent decision to crack down on proprietary trading platforms, though not publicly confirmed, reflects a significant shift in its approach toward proprietary trading firms utilizing its platforms. By compelling Blackbull Markets to abruptly halt services to Funding Pips, MetaQuotes highlighted its commitment to compliance and regulatory standards, particularly concerning clients in the US.
S. BACH | Risk Manager@TraderBachLut 15, 2024Metaquotes restricts access in the US.
While certain eval. firms exclude residents of the UK, Germany, India, the Czech Republic, and Turkey.
In these uncertain times, waiting for the storm to settle is advised.
Best of luck to traders affected, hoping for fair…
Regulatory Challenges for US Clients
The regulatory landscape in the United States presents unique challenges for leveraged trading services and Contract for Difference offerings, leading proprietary trading firms to operate beyond traditional regulatory frameworks. While proprietary trading platforms like Funding Pips don't directly handle clients' funds, their business models face scrutiny.
As MetaQuotes enforces stricter regulations, competitors in the trading technology space are capitalizing on this opportunity. Companies like Devexperts are launching dedicated trading platforms for proprietary trading services, highlighting the evolving dynamics within the industry, Finance Magnates reported.