Between 2023 and 2026, dozens of prop firms closed, some overnight, and traders lost evaluation fees and pending payouts. Industry analysts estimated that 80 to 100 firms shut down in 2024 alone. If you see any of the firms below recommended on another site, that information is out of date.
Major closures
| Firm | When | What happened |
|---|---|---|
| MyForexFunds | August 2023 | Operated by Calgary-based Traders Global Group. Stopped operating after the US CFTC charged it with fraud. In May 2025, a court-appointed Special Master recommended dismissing the case and sanctioning the CFTC. |
| Fidelcrest | March 2024 | Cyprus-based firm operating since 2018. Went silent on support channels; its website later showed unrelated content. |
| True Forex Funds | May 2024 | Closed during the platform-licensing crisis after losing access to its trading platform. |
| SurgeTrader | May 24, 2024 | Florida firm. Announced it had ceased all operations about a week after Match-Trade Technologies ended its platform licence. |
| Smart Prop Trader | November 2024 | Announced an orderly wind-down and said it would honour payouts until late December 2024. |
[EDITOR: Add new closures here as they happen, with the date and a source link. Update the “last updated” date.]
Why so many firms closed
Platform licences. In February 2024, MetaQuotes, the maker of MT4 and MT5, began revoking licences from prop firms, especially those serving US clients. Firms that depended on one platform had nowhere to go when licences were withdrawn.
Regulatory pressure. The MyForexFunds case, though later undermined, made firms and payment providers more cautious.
Unsustainable models. Firms that relied on new challenge sales to fund payouts struggled when sales slowed or too many traders passed.
Warning signs before a shutdown
- Payout delays beyond the firm’s stated timelines.
- New restrictions on funded accounts: tighter drawdown, new consistency rules or lower splits.
- Aggressive discounts to boost sales.
- Slower or scripted support, and silence on social media.
- Platform changes announced at short notice.
Why this matters for South Africans
Some of these firms were widely promoted to South African traders, and review pages recommending them are still online. Because prop firms aren’t FSCA-authorised, there’s no local ombud to help recover fees or payouts from a closed firm, so choosing firms with long payout records matters even more.
How to protect yourself
- Withdraw profits as soon as you’re eligible instead of letting them build.
- Spread funded capital across two or three established firms.
- Prefer firms with multiple platforms and a long, public payout record.
- Pay evaluation fees by credit card where possible.
- Keep screenshots of your account, rules and payout requests.
Prop firms we currently recommend
-
1
FTMO Best overall
- Max account
- $200,000 (more via scaling)
- Profit split
- 80%, up to 90%
- Fee from
- €89 (≈ $10K account)
- Our rating
- 4.6 out of 5
-
2
FundedNext Best for MetaTrader users
- Max account
- $200,000 (up to $4M through scaling)
- Profit split
- 80%, up to 95%
- Fee from
- $59.99 USD (confirm at checkout)
- Our rating
- 4.4 out of 5
-
3
Funding Pips Best budget pick
- Max account
- $100,000 per account (scales to $2M)
- Profit split
- 60–100% (depends on payout cycle)
- Fee from
- About $29–$36 USD ($5K)
- Our rating
- 4.3 out of 5
FAQ
What happens to my money if a prop firm shuts down?
Evaluation fees and pending payouts are usually lost. No insurance scheme covers them, although a credit card chargeback may be possible for recent purchases.
Is MyForexFunds coming back?
MyForexFunds stopped operating after the 2023 CFTC action. Even though the case was later recommended for dismissal, check its current status carefully before paying for anything under that name.
Why did so many prop firms close in 2024?
Mainly because MetaQuotes and other platform providers withdrew licences, combined with regulatory pressure and business models that relied on constant new sales.
How can I tell if a prop firm is about to close?
Watch for payout delays, sudden rule changes on funded accounts, heavy discounting and poor communication from support.