In a move echoing recent payout reports, TrueForexFunds CEO Richard Nagy has confirmed widespread difficulties within the proprietary trading (prop trading) industry.
The CEO’s candid statement comes amidst a wave of news articles on Tradingsplash detailing issues like payout cap rules, funding acquisition struggles, and even complete payout denials by some prop firms.
Here’s what we can gather:
- Payout Delays: TrueForexFunds CEO confirming payout delays suggests it’s a widespread issue, not isolated to MyFlashFunding. This strengthens the connection to the underlying regulatory pressure.
- Industry-Wide Impact: The headline mentions “PROP Firms Industry” being rocked, indicating the problem is systemic, not limited to a single firm.
TrueForexFunds acknowledges the current climate – changing regulations, delayed payouts (including their own), and in some cases, closures. The announcement delves into the root cause of this instability: a fundamental disconnects between prop firm profitability and trader performance.
Despite significant investments in innovation, the industry is failing to achieve consistent profitability among its traders. This has led to a reduction in trader profits. The TrueForexFunds CEO emphasizes that any claims suggesting otherwise lack evidence.
The statement highlights the precarious financial tightrope walked by prop firms. From a prop trader’s perspective, success hinges on exceeding payouts with registration fee income. However, when market losses are factored in, only a handful of funded traders actually turn a profit.
TrueForexFunds positions itself as a transparent player, avoiding the flashy incentives prevalent in the industry and focusing on competitive pricing. However, the CEO concedes that even their stricter rules haven’t ensured sustained profitability.
The announcement also touches on the challenges faced by prop firms with stagnant user bases. The CEO acknowledges that firms with stricter regulations and higher pricing models may be better equipped to weather such scenarios.
TrueForexFunds itself has faced a particularly challenging journey. After becoming the first company to lose its MetaTrader license and be forced to close, they relaunched with unwavering determination. However, this relaunch has come at a cost. The past three months have seen a depletion of their accumulated funds and a backlog of 300 pending payouts.
While unable to offer a concrete timeline for resolving these delays, the CEO assures traders of their absolute commitment to fulfilling payouts as soon as possible.
To improve profitability, TrueForexFunds plans to implement stricter rules that better reflect current market volatility. Specific details regarding these changes will be forthcoming.
The CEO concludes by expressing appreciation for customer support during these difficult times.
This announcement by True Forex Funds serves as a stark reminder of the current struggles within the prop trading industry. As echoed in recent Tradingsplash Payout Cap Rule reports, prop traders considering entering this market are advised to carefully assess the inherent risks before making any commitments.