简体中文
繁體中文
English
Pусский
日本語
ภาษาไทย
Tiếng Việt
Bahasa Indonesia
Español
हिन्दी
Filippiiniläinen
Français
Deutsch
Português
Türkçe
한국어
العربية
Abstract:Singapore-based proprietary trading firm MPFunds has announced its closure. Known for branding itself as Asia’s first modern prop firm, MPFunds has ceased operations due to unforeseen financial challenges. An open letter from Dean Wong, the company's founder and CEO, was posted on the firm’s website (mpfunds.com), shedding light on the situation.
Singapore-based proprietary trading firm MPFunds has announced its closure. Known for branding itself as Asia‘s first modern prop firm, MPFunds has ceased operations due to unforeseen financial challenges. An open letter from Dean Wong, the company's founder and CEO, was posted on the firm’s website (mpfunds.com), shedding light on the situation.
Dean Wong's Statement
According to Wong‘s letter, MPFunds’ sudden closure is attributed to its bank terminating all services without explanation. The timing couldn‘t have been worse for the firm, as a planned Series-A funding round scheduled for September 11, 2024, fell apart. Wong indicated that the financing was essential for the company after it discovered “suspicious activities” among users who allegedly exploited the platform’s systems.
Industry Challenges and Regulatory Pressure
MPFunds joins a growing list of proprietary trading firms that have shut down in recent months, including Fund for Traders. The closure of these firms highlights the intense competition in the industry, especially among companies that sell trading “Challenges” to retail traders. These challenges promise the chance to manage a funded account in exchange for passing a rigorous evaluation process.
However, the model has come under scrutiny from both regulators and trading platform providers. Some firms face stricter regulatory oversight, particularly in financial hubs like Singapore, where authorities are paying closer attention to retail trading operations. Theres also mounting pressure from platform providers, who are tightening their controls on how trading technologies are used. Combined with fierce competition, these factors make it difficult for firms like MPFunds to survive.
Affiliates Left in the Dark
The closure of MPFunds took its affiliates by surprise. Many of these affiliates are responsible for promoting and selling the firm‘s trading Challenges, earning commissions for their efforts. One such affiliate, PropFirmMatch, a prop firm comparison site, expressed shock over the sudden shutdown. In a statement posted on X (formerly Twitter), the site acknowledged the situation and voiced concerns for traders and affiliates impacted by the abrupt end of MPFunds’ operations.
Conclusion
MPFunds‘ shutdown is a reflection of the current challenges faced by the proprietary trading industry. With growing regulatory scrutiny and increased competition, firms relying on a retail trader-driven model are struggling to remain afloat. For MPFunds, a combination of banking issues, suspicious user activity, and a failed fundraising round sealed its fate, marking the end of what was once touted as Asia’s first modern prop firm.
As the industry grapples with these challenges, traders and affiliates are left wondering which firm might be the next to fold.
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
Proprietary trading firm The Funded Trader has detailed its financial recovery efforts following a turbulent period marked by an unsustainable payout model. Addressing these challenges publicly, the firm outlined the steps being taken to resolve outstanding obligations and ensure operational sustainability.
Doo Group has announced its acquisition of PT Prima Tangguharta Futures, a Jakarta-based broker specialising in online derivatives trading. This move represents a significant step in Doo Group's regional expansion strategy and reinforces its growing presence in Southeast Asia.
eToro launches in New York, offering fractional stock, ETF, and options trading nationwide. Discover innovative features like copy trading and free education.
In a distressing case of financial deception, a retired female teacher in Malaysia lost RM570,000 of her personal savings and pension to a gold trading investment scheme.