Florida-based prop trading firm SurgeTrader announced its closure today, citing an unresolved dispute with trading platform provider Match-Trader Technologies.
“We are deeply disappointed to announce the closure of SurgeTrader, effective today,” the company stated on its website. “Despite ongoing efforts to communicate with Match-Trader and resolve the termination of our platform access, we have been unable to reach a solution.”
The dispute stems from Match-Trader’s decision on April 5 to revoke SurgeTrader’s license. The termination notice provided a three-month grace period, allowing SurgeTrader to migrate to a different platform by June 30th. However, SurgeTrader claims the termination was “unwarranted and harmful.”
Match-Trader, on the other hand, maintains that SurgeTrader “failed to meet the formal requirements” for platform access. The company did not elaborate on the specific nature of the compliance issue.
This closure comes at a time when many prop trading firms are seeking alternative platforms following similar termination notices from Metaquotes, the developer of the widely used MT4 and MT5 platforms.
SurgeTrader, founded by Jana Seaman, previously utilized MetaTrader 5 for its prop trading program in partnership with Eightcap. The company had also secured venture capital backing from Valo Holdings Group.
SurgeTrader’s closure highlights the challenges faced by prop trading firms in the current market environment, where access to reliable trading platforms is critical. The specific details surrounding the Match-Trader dispute remain unclear, but it underscores the importance of clear compliance standards and open communication between prop firms and platform providers.
This closure comes amidst growing unease in the prop trading industry. A Reddit user posted concerns about SurgeTrader a month ago, highlighting delays in account confirmations and potential wider issues. These concerns echo broader industry turmoil:
- Payout Delays: Firms like MyFlashFunding have faced criticism for denying payouts due to data feed issues.
- Rule Changes: Established players like MyFundedFX’s new payout cap rule have caused significant waves.
- Market Expansion: Established prop firms like FTMO are venturing into retail brokerage, further disrupting the landscape.
- Industry-Wide Challenges: TrueForexFunds’ CEO recently acknowledged payout delays impacting the entire prop firm industry. This sentiment seems validated by MyFundedFX acquiring SwiftFunding, potentially to streamline payouts.
This period of turmoil within the prop trading industry is likely to raise concerns among aspiring traders. It’s crucial for them to thoroughly research prop firms, understand their compliance and payout structures, and choose platforms with a proven track record of stability and communication.