After MT4/MT5 operator MetaQuotes revoked its trading platform licences, ProbabaFX has learned that Hungary-based online prop trading company True Forex Funds has stopped operating, at least temporarily.
True Forex Funds has become the second well-known name in the prop sector among FX and CFD traders to have its activities closed/ terminated in recent months, after the closure of Canada’s My Forex Funds by US and Canadian regulators in September.
Since June of last year, True Forex Payments has been on the US CFTC’s RED List for soliciting and/or taking payments from US consumers. The CFTC’s RED (Registration Deficient) List includes the names of foreign (i.e., non-US) businesses that appear to be working in a capacity that requires CFTC registration but are not registered.
While True Forex Funds argues that MetaQuotes unfairly disconnected them (see below), seasoned FX industry watcher and analyst Kathy Lien of BKTraders thinks MetaQuotes’ action may have something to do with the company’s September 2022 ban of its MT4 and MT5 trading apps from the Apple App Store and their subsequent reinstatement in March 2023.
Regarding its temporary shutdown, True Forex Funds published the following message, signed by CEO Richard Nagy, on its website (which is not accessible otherwise):
______________________________
Dear Traders
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 incomprehensible reason for the termination is using a third-party provider for equity synchronization purposes who has allegedly not connected to MetaTrader’s client terminal in a way that is fully acceptable to MetaQuotes. True Forex Funds has used the mentioned third-party service since 2021 without any complaint from MetaQuotes.
“MetaQuotes gave no warning or chance to replace the provider, making it impossible to verify their legitimacy through source code.”
“Despite the turbulence, we promise to stand firm, ensuring you can seamlessly resume your journey without interruption. Our team continuously tries to convince MetaQuotes to keep our licenses; in case of lack of success, we will try to migrate your trading accounts to a broker.
We want to apologize for this disaster, a force majeure event due to reasons beyond our control. Please note that we will settle the remaining payouts once we unfreeze the platform.
If the worst-case scenario occurs and we have to migrate to another broker’s server, we will face an issue with the offered symbol discrepancies, making open position migration challenging. Close your positions before the market closes, or the system will automatically close them.
As soon as the workaround is implemented, you can continue your trading journey with True Forex Funds. Your support means a lot to us.
We will keep you updated.
Richard Nagy
CEO
