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

FAQs

What happened to the funded Engineer prop firm? ›

Funded Engineer, a troubled prop trading firm, announced today (Monday) the “permanent closure” of its operations, effective immediately, and the decision to file for bankruptcy, on its official social media channels.

Announcement of Ceasing Operations

Dear Valued Clients and Partners, It is with deep regret and a heavy heart that we announce the permanent closure of Funded Engineer.

In total, at FunderPro we have identified over 50 firms that have ceased operations. Even firms like The Funded Trader have been deeply impacted.

Prop businesses nowadays are utterly unregulated and far apart from the banking industry. As a result, these internet prop companies are legitimate and not a fraud. Scammers do exist in the sector, though, and they attempt to exploit the current market because there isn't much oversight.

Harri Sawicki Founder/CEO

My goal is to create a thriving trading community and give the best conditions for traders to succeed in their careers.

Funded Engineer has opted to issue MT5 accounts for the time being due to bugs in MT4. Once the bugs are fixed, users will have the option to switch back to MT4. The company is reportedly processing customers' refunds daily.

About half of those pursuing an engineering major change their field of study or drop out before graduation. And half do so during their first year of college.

The Prop Trading Problem: Virtual Trading

No trades placed by funded traders reach the real market, meaning traders never generate real profits. Firms could potentially manipulate the market to make traders fail their challenges. Payouts must be paid with the firm's money, which comes from challenge purchases alone.

The failure of prop firms can be attributed to a mix of operational challenges, regulatory pressures amongst other things. While these firms offer significant benefits, the risks and issues they face are substantial.

True Forex Funds Has Permanently Shut Down Due to Financial Insolvency. Prop trading firm “True Forex Funds” had ceased all operations as of May 13. It really seems like there's a new prop firm shutting down every other week! From the outside it looks like complete chaos.

What happens if you lose money as a funded trader? ›

What happens if you lose money on a funded account? Since retail prop trading firms keep traders in demo accounts, the only thing that happens is that traders lose access to funded demo accounts if they violate the maximum drawdown level.

In his view, the main cause of current problems is the absence of real funds, highlighting FunderPro's commitment “to funding traders with real money, ensuring aligned interests between traders and our firm, unlike the simulated funds that have become all too common.” Having recognized that prop trading may be very ...

Most small traders bet too much capital on high-risk trades. Traders with a speculative mindset are much more aware of risk and actively find ways to keep it contained. The most important thing a trader must do is protect capital, and that can only be done by controlling risk.

Tristian Talbot Founder/CEO

One of the key issues he identified is the lack of realistic drawdown limits that strip traders of their accounts, despite their past success.

FPFX sued Funded Engineer over wash trading

They were supposed to pay monthly fees and other amounts stipulated in the agreement. However, a January 2024 audit by FPFX revealed alleged record manipulation by the defendants, intended to reduce payments owed under the agreement.

The term proprietary trading has been historically used to refer to the practice of a bank or other financial institution investing on behalf of its own account, with its own funds. Today, a different alternative, a “modern” form of prop trading is becoming increasingly common.

They are a new Prop firm but as they are quite cheap I tried to give them one chance Their spreads on Nas was okay. I passed the challenge and now owner of a Funded account with them. Got a small payout but this clears all doubt from my mind that they are a legit company!”