As the prop industry evolves, many firms are restricting traders based in countries with more stringent regulations, such as the United States. This has caused a headache for US-based traders seeking funding via online prop firms.
In this article, I will explain why firms have shifted away from US traders and look at our top choice which still accepts US traders.
What has Happened to the Prop Industry in the Past Year?
In order to understand why US traders are banned from many firms, we need to look back over the events of the past year.
Back in 2020 while online prop trading was in its infancy and only a handful of firms were around, there were very few restrictions in place for traders who wanted to join. Now with more than 300 online prop firms currently active, the vast majority are refusing US Traders – Why?
It started in September of 2023 when both Canadian and US financial regulators filed a case against the then-largest prop firm, My Forex Funds. This action lit the fuse for the turmoil that would follow. It also highlighted how unregulated the industry was and the liability issues companies could face for doing business in this industry.
This is when the stack of cards started to fall apart. First, the industry’s primary payment provider, DEEL, severed ties with all prop firms with immediate effect. This left many firms scrambling for replacements, with many opting for blockchain providers such as Riseworks.
By January 2024, Metaquotes had also decided to distance themselves from the industry and began revoking licences for prop firms which didn’t also own a brokerage licence. This caused a magnitude of issues for many firms.
The Funded Trader, which was another prop giant, succumbed to the mounting pressure and halted operations in March 2024. Many other firms also never recovered from the payment and platform challenges.
Why this affects US Traders
Since CFDs are not allowed in the US, those firms who managed to keep their Metaquotes licence had no choice but to refuse US traders. There have been a few workarounds since then, with other platforms such as DXTrade, CTrader and Matchtrade filling the gap. Many firms have continued to restrict US traders, however, as a precautionary measure.
I expect some firms will begin opening back up to US traders as stable workarounds become available, but for now, choices are limited.
Which is the Best Prop Firm for US Traders Now?
For regular readers, it may come as no surprise that I am going to recommend FunderPro. Not only does this firm allow US Traders, they also provide live capital in their funded accounts, making them one of the only A-Book prop firms.
Furthermore, they have a solid infrastructure in place to provide stability for their traders. While other firms were scrambling to find reactive solutions to the industry problems, FunderPro’s approach meant their traders never missed a day in the markets.
Here are some of the proactive steps FunderPro took to protect itself from the industry-wide problems:
- They created their platform – TraderLocker was built by RedAcre who also operates FunderPro. By owning their trading platform, they are not at risk of licensing issues.
- They are based in Malta/Cyprus – These locations are a central hub for trading companies where regulators have a more harmonious relationship with financial businesses.
- They operate transparently – FunderPro does not hide behind shell companies or complex virtual/demo trading loopholes. Their system is based on fairness and mutual gain for the trader and the firm.
- They have a strong and experienced team – By investing in building a solid team, they have managed to spot any problems before they occur. This also benefits traders are receive excellent trading conditions designed to help them succeed.
Want to Learn More about FunderPro or Sign Up? (We can provide a 20% discount)
We have partnered with FunderPro to bring our members the best possible price for starting a FunderPro Evaluation. You will not be able to find a better discount anywhere else!
You can head over to FunderPro by clicking the button below. If you decide on purchasing an account, be sure to use the following code at checkout for your discount: clubfunded2024
You can also check out some of our other articles on FunderPro below or visit the FunderPro Prop Firm Explorer Page here.
