Updated
“Recently, the prop firm I was using suddenly closed down.” “I can’t withdraw my money anymore.”
These voices have been rapidly increasing on social media in 2024 and 2025.
In fact, it is said that 80 to 100 prop firms closed down in 2024 alone. On the other hand, there have been a series of major M&A (mergers and acquisitions), such as FTMO’s acquisition of OANDA and QT Funded’s acquisition of Earnex.
This article thoroughly analyzes what is happening in the prop firm industry and the 5 conditions for prop firms to survive going forward, based on the latest data.
✅ This article will explain
- List of prop firms that closed in 2024 and the reasons for their closure
- The reality of the “MetaQuotes issue” that triggered the industry restructuring
- The background of major M&As such as FTMO×OANDA and QT×Earnex
- The 5 conditions for prop firms to survive in the future
- How traders should choose a prop firm
[Video] Prop Firm Industry Restructuring (to be released soon)
What happened in the prop firm industry in 2024?
2024 was the “year of major shakeout” for the prop firm industry.
Shocking figures: 80 to 100 companies closed
According to a survey by Finance Magnates Intelligence, 80 to 100 prop firms disappeared from the market in 2024 alone. This represents about 14% (1 in 7 companies) of the entire industry.
Main prop firms that closed in 2024
| Company | Closure Period | Main Reason |
|---|---|---|
| MyForexFunds | Late 2023 to | Freezing by regulatory authorities and lawsuits |
| The Funded Trader | March 2024 | Operating issues and failed platform migration |
| SurgeTrader | May 2024 | License dispute with Match-Trade |
| True Forex Funds | 2024 | Regulatory pressure |
| Funded Engineer | July 2024 | Liquidity issues and bankruptcy filing |
| Funds For Traders | 2024 | Termination of MT4/MT5 support by Eightcap |
| Karma Prop Traders | 2024 | Liquidity issues (closed within 2 months of opening) |
| Ascetic Capital | 2024 | Poor sales (closed within 1 week of opening) |
| Smart Prop Trader | November 2024 | Business restructuring (announced new service preparation) |
| Skilled Funded Traders | 2024 | Unable to continue operations |
⚠️ Caution
Many of the closed prop firms have suddenly stopped their services without completing withdrawals to traders. In most cases, it is difficult to recover challenge fees and unpaid profits.
Trigger for Industry Restructuring: What is the MetaQuotes Issue?
The biggest cause for so many prop firm closures is MetaQuotes (the developer of MetaTrader) stopping the provision of licenses to prop firms.
MetaQuotes’ decision directly impacted the industry
In early 2024, MetaQuotes suddenly made the decision to suspend or restrict the provision of MT4/MT5 licenses to many prop firms.
📝 Background of MetaQuotes’ license suspension
- Concerns about prop firms’ use of “demo accounts”
- Pressure from regulatory authorities
- Protection of brand image
Drastic changes in platform share
According to a survey by Brokeree Solutions, the platform share in the prop firm industry changed dramatically as follows:
| Platform | Q1 2024 | Q4 2024 |
|---|---|---|
| MetaTrader (MT4/MT5) | 48% | 24% (halved) |
| cTrader/TradeLocker/DXTrade, etc. | 52% |
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