The True Forex Funds and The Funded Trader: Differences

True Forex Funds and The Funded Trader are both reputable proprietary trading firms. Nevertheless, there is no lack of questions about both firms. 

True Forex Funds has its main office in Győr, Hungary. The Funded Trader is based in the U.S.

True Forex Funds allows traders to manage two-step evaluation accounts with a maximum capital allocation of $400k. 

Meanwhile, the Funded Trader provides an even larger capital base, allowing traders to seek funding up to $600k. Importantly, both firms utilize a scaling plan in their operations. 

True Forex Funds vs. Funded Trader 

The two firms have distinctive approaches when it comes to their funding programs. True Forex Funds has chosen a structured route. The firm offers a singular two-step evaluation for traders. Conversely, The Funded Trader provides a more diverse evaluation framework, including a straightforward one-step evaluation and an additional three two-step evaluations.

To sum up, both True Forex Funds and The Funded Trader stand out as solid options for traders seeking proprietary trading opportunities. They each offer unique trading rules, objectives, and pricing models and receive varied feedback from their communities. 

While True Forex Funds lean towards a simpler two-step evaluation system, The Funded Trader boasts a more varied evaluation range. 

What Is a Proprietary Trading Firm? 

As mentioned above, True Forex Funds and Traded Funds are prop trading firms. So, it is important to understand how proprietary trading firms operate.

A proprietary trading firm, often referred to as a “prop firm” or simply “prop shop”, is a financial institution that invests its own capital in the trading of financial instruments. 

As opposed to investment banks or hedge funds, these firms do not handle clients’ money or seek outside investment. Instead, they trade exclusively with the company’s own funds, aiming to generate profits directly from market activities. 

What Happened To True Forex Funds?

True Forex Funds, a Hungary-based online prop trading firm, faced a significant disruption. The main reason: MetaQuotes, the operator of the popular trading platforms MT4 and MT5, terminated the firm’s licenses. This action led to a temporary shutdown of True Forex Funds’ operations.

The company had become the second notable entity in the proprietary trading sector to experience such a halt in recent months, following a similar situation with Canada’s My Forex Funds, which regulators in the US and Canada shut down.

The company has also been listed on the US Commodity Futures Trading Commission’s RED List for soliciting and/or accepting funds from U.S. customers without proper registration​​.

In response to this challenge, Richard Nagy, the CEO, committed to finding a solution to continue serving its traders. The firm was actively working on persuading MetaQuotes to reconsider its decision and exploring plans, including the potential transfer of trading accounts to alternative brokers.

Despite the setback, the company reassured its traders of its intention to resume operations, urging them to stay informed and prepare for possible outcomes such as the settlement of remaining payouts and account migrations​​.

Further demonstrating its resilience and commitment to its traders, they announced plans to relaunch operations with the introduction of the cTrader platform, aiming to integrate users’ accounts into this new system. This move was part of the firm’s efforts to seek reinstatement of its license by MetaQuotes and potentially to synchronize all accounts, including those on MetaTrader, to ensure seamless trading conditions

Is True Forex Funds Safe?

The company faced challenges that raised concerns about its safety for traders. The firm temporarily ceased operations after MetaQuotes ended its MT4 and MT5 licenses.

This situation, coupled with being listed on the US Commodity Futures Trading Commission’s RED List for soliciting and/or accepting funds from U.S. customers without proper registration, can be seen as indicators that potential traders should approach with caution and conduct thorough research before engaging​​.

What countries did this broker ban?

The specific countries where True Forex Funds is banned were not directly mentioned in the information available. However, being on the US Commodity Futures Trading Commission’s RED List suggests that it has faced restrictions or warnings in the United States for soliciting or accepting funds without the necessary registration​​.