Prop Firm SurgeTrader Shuts Down a Week after Losing Match-Trader License
Just seven days after the Florida-based SurgeTrader announced that Match-Trade Technologies had terminated its license, the prop trading firm has decided to cease operations. It appears that SurgeTrader was cut off from alternative platforms that could have allowed it to continue serving retail traders.
SurgeTrader Disappears from the Prop Trading Firm Horizon
SurgeTrader announced that it has definitively ended all its operations through an official post on Channel X (formerly Twitter) before midnight on May 24, 2024. "It is with deep regret that we announce that as of today, Friday, May 24, 2024, SurgeTrader has closed and ceased all operations," the SurgeTrader X (formerly Twitter) account stated.
"Despite all of our efforts this week to get Match Trade Technologies to further communicate in an effort to resolve our trading platform termination, we have been unsuccessful," the post continued. Currently visiting the surgetrader.com website, users find exactly the same information as that posted on social media.
Although the decision was announced recently, according to users of the official SurgeTraders Discord channel, contact with company representatives has been limited for a long time. “The problem is they don’t communicate anymore,” one person commented to Finance Magnates.
Source: SurgeTrader's Discord Channel
The cessation of operations is the aftermath of the chaos that erupted in the prop trading industry in recent months due to license suspensions by MetaQuotes, a provider of some of the most popular trading platforms, also among prop firms.
Without MetaTrader and Match-Trader, SurgeTraders Was Left Platformless
Over three months ago, MetaQuotes unexpectedly began suspending licenses for prop firms servicing investors from the United States using MetaTrader 4 and 5 platforms. This triggered a massive suspension of operations, the acceptance of new clients, and the search for new platforms. Like most firms in the industry, SurgeTrader opted to migrate to a platform from Match-Trade Technologies, namely Match-Trader.
However, just a week ago, the license for this platform was also suspended.
The company asserted that the provider had no justification for such a move and speculated that "a well-known third party" may have influenced the decision.
Source: SurgeTrader
However, according to the information provided by Match-Trade Technologies to Finance Magnates, the termination of the partnership with SurgeTrader was due to the firm's "inability to fulfill the formal obligations specified in our contract."
"The termination notice was issued on April 5 and will take effect on June 30, allowing the company three months to migrate to a different platform, thereby minimizing the impact on trading activities," the Match Trade Tecnologies added. "In light of justified compliance concerns and with the best interests of traders in mind, we have decided to terminate the cooperation, extending the notice period specified in the agreement."
The situation in the industry remains highly dynamic. On the same day, another prop firm, The Funded Trader, announced that it had reached a "pivotal moment" in its recovery and promised a comeback.