Prop Trading Firm Funded Engineer’s Troubles Continue: Purple Trading to Suspend Services (2024)

FAQs

How many people fail prop firms? ›

According to it, 4% of traders, on average, pass prop firm challenges. But only 1% of traders kept their funded accounts for a reasonable amount of time. While this result is not nearly as bad as the one discussed earlier, it still looks bleak for prospective prop traders. But why is the percentage of failure so high?

Funded Engineer collaborates with reputable brokers, including Blueberry Markets, ThinkMarkets, and Purple Trading, to provide traders with multiple brokerage options.

The MetaQuotes move indicates that the company is very cautious when it comes to offering services using its platform to US clients. The two MetaTrader apps were banned on Apple's App Store in 2022 for their alleged use by fraudsters targeting the US citizens and residents.

A prop trading firm is a company that provides its traders with access to capital. In return, the traders share a percentage of the profits they generate with the company. Individuals face many hurdles on their journey to become professional traders.

Surge in Prop Trading Firm Ads Sparks Concern

These firms often promote trading in complex financial instruments such as CFDs and forex products, which pose significant risks to investors, potentially resulting in the loss of their entire investment.

According to FTMO statistics, only about 10% of traders are able to pass the funded account challenge at any account level. This means approximately 90% of aspiring funded traders fail the evaluation and are unable to gain access to the firm's capital.

We are a regulated STP broker, we only offer trading accounts with variable spreads and all our real account clients' trades are sent directly to the interbank market. Clients of the company can trade actively by themselves, or connect their account to a selected trading strategy.

Purple Trading is a broker licensed and regulated by the CySec. While regulation gives to brokers much needed credibility, it still does not mean every regulated broker is honest. In order to be sure that Purple Trading is not a scam, read our trader reviews and check other popular trading related websites and forums.

You will be able to request the payout from your dashboard by clicking the 'Withdraw Balance' button. Once you submit a withdrawal, your account will be placed on read-only and no trades can be placed until the review and withdrawal process is complete.

The speculation now is that the governing bodies and regulators will put a ban on the whole prop firm industry – which is not going to happen. The prop firm industry has been alive, well and regulated for decades. It's only the online prop firm space that is yet to see regulation.

What is the future of prop firms? ›

Prop firms that operate in strict adherence to regulations are likely to have a more stable and sustainable business model. Additionally, this situation may prompt prop firms to diversify their trading strategies and explore alternative markets and platforms.

The legality of Prop firms has been a topic of debate. Regulations like the Volcker Rule and the Dodd-Frank Wall Street Reform and Consumer Protection Act have made it more difficult for banks to engage in proprietary trading.

Yes, prop firms do pay. While there are some scams out there popping up everyday, reputable prop trading firms like True Forex Funds, FTMO,5%ers,FundedNext are legitimate and pay traders according to their profit-sharing agreements.

Prop trading firms are less heavily regulated than regular brokerages and broker-dealers. However, if such laws apply, you must still properly register your business and get licensed. For example, in the US, CFD trading is prohibited, and you can only offer prop trading of exchange-traded securities.

With the Prop Firm challenges, it's not just about failing or winning. You must be profitable and fulfill certain trading objectives which makes it even harder. Less than 1% of traders who attempt the challenge pass and get funded.

It is estimated that only 4% of Forex traders succeed with prop firm challenges, and only 1% of traders can generate profits consistently without violating any rules.

The most common reasons traders fail prop firm challenges are simply overleveraging their trades, not understanding the rules, and not having a profitable trading strategy.

You will be removed from the Premium Programme if one of the following situations occurs: You fail the FTMO Account which is part of the Premium Programme. You fail 3 accounts regardless of the of the stage (FTMO Challenge, Verification, FTMO Account)