This summary of the video was created by an AI. It might contain some inaccuracies.
00:00:00 – 00:10:07
The video highlights issues faced by prop trading firm, Funded Trader, including solvency problems leading to halting of operations. It discusses unethical practices in prop firms where revenue issues can lead to closure. The risks of traders walking away and company liability are emphasized, with a warning against such practices. Legal actions are seen as crucial for business longevity, with adaptability being key in the Forex industry. The video addresses the unethical nature of certain prop trading models and advises seeking out firms with instant payouts for reliability, recommending Funded Pro as an alternative.
00:00:00
In this segment of the video, the speaker discusses the issues faced by a prop trading firm called Funded Trader. The firm has solvency problems, leading them to halt operations and pause all activities. Typically, prop firms offer challenge accounts to find profitable traders who, once proven successful, receive real funds to trade with. The profit split is usually 80-20, with the trader keeping 80%. However, some prop firms may not fully fund accounts and use fees from unsuccessful traders to pay profits, which can lead to solvency issues and closure. This unethical practice occurs when revenue is low, and firms struggle to meet financial obligations, ultimately resulting in the company shutting down.
00:03:00
In this segment of the video, it discusses the potential risks and issues associated with a trading company’s business model, where traders can walk away after losing money that then becomes the company’s liability. The CEO of the company, Angelo, faced criticism for deleting tweets and withholding payouts from traders who posted negative reviews. Instant payouts are emphasized as essential for prop firms, suggesting a need for caution and preparation for potential solvency issues. The CEO hinted at pausing operations but promised a relaunch with updates and changes in the near future.
00:06:00
In this part of the video, it is emphasized that taking legal actions from the start is crucial for business longevity. The speaker expresses disdain for the Forex industry due to pending payouts and site shutdowns, leading to potential lawsuits. Despite industry challenges, traders are adapting to different platforms and brokers to continue making money. Adaptability is key in this industry. There still exist trusted brokers and firms, with a distinction between those that have failed and those that remain trustworthy. The funded Trader was also a tech company offering white label services to others, but this practice has faced solvency issues and legal repercussions. The speaker received numerous emails from similar companies offering lucrative benefits but illegal business models.
00:09:00
In this segment of the video, the speaker discusses the illegality and unethical nature of certain prop trading business models that exploit individuals and lack transparency. They mention having the opportunity to create their own prop firm but chose not to due to ethical concerns. The speaker advises those affected by such practices to seek out prop firms with instant payouts as they may be more reliable. They mention Funded Pro as a recommended option and provide a link to a recent live stream by the CEO addressing related issues.