Global proprietary trading market has experienced sustained growth in recent years, but it also confronts compliance challenges. Industry giants such as FTMO and FundedNext from Prague and the UAE, alongside well-known enterprises in the U.S. market like The Funded Trader, Surge Trader, and E8 Funding, have recently encountered significant compliance troubles.

MetaQuotes, a major supplier in the forex trading and contracts for difference (CFD) fields, recently issued a statement requiring institutions using their services in the U.S. to be regulated by Finra or NFA. This decision has posed challenges to the industry and raised concerns about the future of proprietary trading companies. Over the past two decades, some proprietary trading firms have engaged in detrimental practices like interfering with client orders and unwarranted refusals of payments due to lack of regulation. Some companies have even faced lawsuits from U.S. regulatory agencies on charges such as false statements.

MetaQuotes believes that proprietary trading companies pose high risks, creating opportunities for new platforms like cTrader, DXtrader, and Trading View to enter the market. These new platforms may alter traders' preferences, bringing more diversity to the industry, but also forcing some proprietary trading companies to switch to these platforms, potentially risking client interests.

It's worth noting that these compliance challenges do not affect proprietary funds like siegfund.com, which operate through compliant brokerage accounts. This compliance trend primarily impacts those companies posing with legitimate accounts while actually using simulated accounts and claiming orders enter real liquidity markets.

Overall, the global proprietary trading market faces severe compliance challenges, impacting industry leaders like FTMO and FundedNext and casting uncertainty over the future development of the entire sector.

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LINK:https://www.siegfund.com/