Another Prop Firm Announces Closure in Year That Saw 50+ Companies Shutter

Smart PropTrader, a prop firm offering funded trading accounts, announced it will ceaseaccepting new traders as it prepares to wind down operations by year-end. Althoughthe company promises to introduce a new product, for now, it is just anotherfirm disappearing from the rapidly evolving proprietary trading sector.

Prop Firm Smart PropTrader Sets December Exit Date

“Smart PropTrader will no longer onboard new traders,” the company commented in a socialmedia post. “Smart Prop Trader is committed to doing the right thing byprioritizing fairness, transparency, and respect for our traders, and providingextra time for traders to earn payouts.”

Thecompany, led by CEO Blake Olson, will continue supporting existing tradersthrough December 29, 2024, maintaining regular payout schedules and offeringrefunds to qualifying November account holders.

“We'reproud to take this responsible and trader-first approach, ensuring your trustis honored as we prepare for what's next,” the proprietary firm commentedon X, presenting the closure of its operations as though it was a positivedevelopment.

The firmhas implemented a structured exit strategy:

• Currenttraders can continue operations through December 29
• November2024 account holders at break-even or above qualify for full refunds
• Accounts ingood standing post-December 29 will receive individual resolution plans

Smart PropTrader hints at future developments, suggesting a potential pivot that could “redefine the greater trading industry,” with announcements expectedin the coming weeks. However, the details about the potential new venture werenot provided.

Accordingto industrysources, at least 50 prop trading firms ceased their operations this year.

“This waveof closures began when regulatory authorities in the US and Canada froze MyForex Funds, a major player in the industry,” FunderPro’s Alex Zanutto wrote inan op-ed for Finance Magnates. “Following this, True Forex Funds, Surge Trader,and Skilled Funded Traders all shut down.”

Not the First, andCertainly Not the Last

Proptrading firms have been emerging and disappearing at a rapid pace in the pastyear. Smart Prop Trader has now joined the growing list of firms unable tosurvive in this highly competitive market.

In lateSeptember, Finance Magnates reported that Funded Friends, a prop tradingfirm founded earlier this year, announced it would cease operations and beacquired by competitor TradingFunds. The announcement was made by CEO ArjoJanssens.

Just amonth earlier, Funds For Traders informed its users that it would also beshutting down. The company attributed the suspension of its services toEightcap’s decision to stop supporting the MetaTrader 4 and MetaTrader 5platforms for prop trading.

Around thesame time, Karma Prop Traders also announced its closure. The firm’s founder,Eshan Balapatabendi, stated that while he “had good intentions,” hefaced “roadblocks” that made the business “unsustainable.”Despite receiving positive reviews, Karma Prop Traders lasted only two months.Balapatabendi blamed liquidity issues for the firm’s downfall, accusing “cheaters” of contributing to its closure.

Over thesummer, Funded Engineer, another struggling prop trading firm, announced the “permanent closure” of its operations, effective immediately. Thecompany revealed its decision to file for bankruptcy through its officialsocial media channels.

“Despite our extensive efforts to improve our financial situation, we have been unable to overcome the challenges we faced, necessitating the cessation of all operations effective immediately,” the announcement stated. “As part of this closure, Funded Engineer will be filing for bankruptcy.”