In a surprising development, MetaQuotes, the creator of the popular MetaTrader trading platform series, has revoked the licenses of True Forex Funds, leading to an immediate halt of the company’s services. The license termination stems from True Forex Funds’ usage of a third-party service for equity synchronization between trading accounts, a practice MetaQuotes contends fails to meet its regulatory standards.
Details Behind the License Revocation
Since 2021, True Forex Funds had employed a third-party provider to ensure equity synchronization across its traders’ accounts. The company reports that this procedure had never previously been contested by MetaQuotes. Yet, in a sudden move, MetaQuotes withdrew True Forex Funds’ licenses, citing non-compliance with its operational criteria. This action highlights the difficulties within the industry’s norms, particularly the impracticality of verifying the authenticity of a partner or provider’s software code.
True Forex Funds’ Strategy Moving Forward
Richard Nagy, the CEO of True Forex Funds, has publicly committed to addressing this challenge head-on. The company is actively exploring avenues to resume its services, including engaging in discussions with MetaQuotes to recover the revoked licenses. Should these efforts falter, there is a contingency plan to transfer trading accounts to an alternative brokerage service.
Implications for Traders and Future Directions
True Forex Funds has extended its apologies to its clientele for the inconvenience and uncertainty spurred by these events. It has advised traders to liquidate their positions ahead of the market’s close to evade the complexities associated with transferring open positions to a new broker, due to potential discrepancies in trading symbols.
The company has reassured its customers that all outstanding payments will be honored once the platform is back online. Despite the current predicaments, True Forex Funds remains resolute in finding a solution to recommence its trading operations at the earliest opportunity.
