ATFX has suspended operations at ATFunded, its proprietary trading division, barely 18 months after launching the service in October 2023. The broker announced it is conducting a comprehensive business review to determine whether its current prop trading model remains viable over the long term. ATFunded stated it will honour all outstanding obligations, including issuing full refunds to active account holders and processing pending payouts to funded traders.
The abrupt pause follows the earlier departure of ATFunded CEO Joshua Dentrinos, who left just months into his tenure. While ATFX previously reported converting over ten percent of prop traders into standard brokerage clients, the firm has not disclosed financial performance data for the division, as it operates privately across multiple jurisdictions without public reporting requirements.
The suspension carries broader implications for the retail trading industry, where funded trader programmes have proliferated rapidly among CFD brokers seeking new revenue streams and client acquisition channels. ATFunded’s notice acknowledged the prop trading sector has evolved substantially and cited the need to evaluate models that better align trader success with business sustainability.
For brokers operating or considering prop trading divisions, this development highlights potential sustainability concerns around existing business models, particularly regarding payout structures, trader pass rates, and customer acquisition costs relative to lifetime value.
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FXnCO Insight
** ATFX’s decision signals that first-generation funded trader models may require fundamental restructuring as competitive pressures compress margins and regulatory scrutiny increases across key jurisdictions.
Source: Finance Magnates