After the 'My Forex Funds' Fiasco: 'True Forex Funds' Stalls Operations

<p>Prop trading firm True
Forex Funds experienced disruption after claiming that MetaQuotes, the operator of MT4 and
MT5, terminated the licenses for its trading platform. This resulted in a temporary
cessation of its services. </p><p>This development marked the second instance in
recent months where a notable name in the proprietary trading sector for
foreign exchange (FX) and contract for difference (<a href="https://www.financemagnates.com/tag/cfds/" target="_blank" rel="follow">CFD</a>) traders has faced
operational disruption following the shutdown of Canada's My Forex Funds by US
and Canadian regulators last September.</p><p>True Forex Funds' CEO Pledges Resolution</p><p>In response to the disruption, True Forex Funds'
CEO, Richard Nagy, expressed the team's commitment to finding a solution and
continuing to serve its traders. Currently, the firm is persuading MetaQuotes
to reconsider its decision while plans are being explored, including the
potential migration of trading accounts to alternative brokers.</p><p>Despite the setback, True Forex Funds has reassured
its traders that it will resume operations. The firm has urged traders to
stay informed and prepare for potential developments, including the <a href="https://www.financemagnates.com/terms/s/settlement/">settlement</a>
of remaining payouts and the possibility of account migration.</p><p><a href="https://www.financemagnates.com/" target="_blank" rel="follow">Finance Magnates</a> has contacted MetaQuotes and True Forex Funds for comments about the development, and this story will be updated as soon as we receive their feedback. Notably, True Forex Funds was flagged by the Commodity Futures Trading Commission last year. </p><p>The Proprietary Trading Paradigm</p><p>According to a recent <a href="https://www.financemagnates.com/forex/prop-trading-and-trader-funding-firms-separating-marketing-gimmicks-from-reality/" target="_blank" rel="follow">post</a> by Finance Magnates,
proprietary trading firms operate on a fundamentally different model from Trader Funded Firms. They
engage in active trading activities, leveraging their resources and expertise
to capitalize on market opportunities. Besides that, the firms use quantitative
strategies, act as <a href="https://www.financemagnates.com/terms/m/market-makers/">market makers</a> or liquidity providers, and are subject to
regulatory oversight.</p><p>The misconception arises when trader funding
programs are erroneously equated with proprietary trading firms. While both may
share certain characteristics, such as evaluation processes and access to
capital, the underlying business models and operational dynamics differ.</p><p>Last year, a US court partially granted My Forex
Funds CEO Murtuza Kazmi's request, releasing approximately $100 million of his
assets while retaining $12 million. <a href="https://www.financemagnates.com/forex/breaking-us-court-orders-release-of-majority-of-my-forex-funds-founders-assets/" target="_blank" rel="follow">This decision</a> followed the submission of "first
impression evidence" by the Commodity Futures Trading Commission against My Forex Funds, indicating deceptive practices within the company,
Finance Magnates reported. </p><p>Additionally, the court discharged the temporary
receiver earlier appointed, expressing confidence in the defendants' legal
representation and compliance with court orders.</p>

This article was written by Jared Kirui at www.financemagnates.com.