Smart Prop Trader, a well-known prop trading firm offering funded accounts, has announced its closure, marking another chapter in a year that has seen over 50 similar companies shutter their operations. The firm, led by CEO Blake Olson, plans to cease operations by December 29, 2024, with a promise to return with a revamped offering in the future.
Structured Exit Plan for Traders
Smart Prop Trader has stopped onboarding new traders as of November 27, 2024, but it remains committed to supporting its existing clients. Here’s what the company is offering:
- Continued Support Until December 29: Current traders can continue trading until the year’s end.
- Refunds for November Accounts: Traders who held accounts at break-even or better in November 2024 will qualify for a full refund.
- Resolution for Good Standing Accounts: Accounts in good standing post-closure will be addressed on an individual basis.
“We’re proud to take this responsible and trader-first approach,” the company stated on social media, emphasizing transparency and fairness as its guiding principles. The firm also hinted at exciting developments ahead, suggesting a potential pivot in strategy to “redefine the trading industry.”
The Growing List of Prop Firm Closures
Smart Prop Trader’s closure is part of a broader trend affecting the proprietary trading industry. At least 50 firms have exited the market in 2024 alone, reflecting the sector’s volatility and competitive pressures.
The wave of closures began earlier this year when regulatory authorities in the US and Canada froze operations at My Forex Funds, one of the industry’s biggest players. The fallout led to the shutdowns of several other firms, including:
- True Forex Funds
- Surge Trader
- Skilled Funded Traders
Recent closures also include Funded Friends, Funds For Traders, and Karma Prop Traders, all citing challenges ranging from regulatory pressures to liquidity issues and unsustainable business models.
A Challenging Landscape for Prop Trading Firms
The competitive nature of the prop trading industry, coupled with regulatory scrutiny, has made survival increasingly difficult. Firms offering funded accounts face additional challenges, including maintaining liquidity, addressing platform disruptions, and combating fraudulent activities.
For instance, the decision by Eightcap to stop supporting MetaTrader 4 and MetaTrader 5 for prop trading led to the suspension of services for several firms, including Funds For Traders.
Despite these challenges, some firms remain optimistic about the future. Smart Prop Trader’s promise of a new product hints at resilience and adaptability in the face of industry-wide difficulties.
Looking Ahead
While Smart Prop Trader’s closure may be disappointing to its community, the firm’s structured exit strategy and promise of a comeback provide hope for traders and the broader industry. The firm’s announcement underscores the importance of innovation, sustainability, and compliance in the ever-changing landscape of proprietary trading.
As the industry continues to evolve, the focus will likely shift towards creating more robust business models and fostering trust among traders and regulators. Smart Prop Trader’s future plans could set a precedent for how firms adapt and thrive in this challenging market.