Funded Friends, a prop trading firm launched earlier this year, has announced that it will be shutting down and has been acquired by TradingFunds, a larger competitor in the industry. The decision was shared by CEO Arjo Janssens, who explained his reasons for moving away from running a prop firm.
No Financial Problems, Shift to Education
Janssens made it clear that Funded Friends isn’t closing due to financial issues or liquidity problems. Instead, he explained that while the business had potential, his personal passion lies elsewhere. “I’ve realized that I’m more interested in helping traders through education rather than running a prop firm,” Janssens said. His focus will now shift entirely toward trading education.
What Happens Next for Traders
Funded Friends will offer full refunds to all active account holders. Additionally, traders will receive vouchers equal to their account balances that can be used with TradingFunds. Even those who haven’t met minimum trading requirements will still receive their profits.
All Funded Friends employees will also transition to TradingFunds, ensuring job continuity during the acquisition.
Consolidation in the Prop Trading Industry
The acquisition of Funded Friends by TradingFunds is part of a larger trend in the prop trading world, where smaller firms are either shutting down or being bought out by larger competitors. Recent examples include MyFlashFunding and Karma Prop Traders, which were also acquired as the market becomes more competitive.
Though Funded Friends isn’t closing due to the same challenges as these firms, Janssens’ decision to step away reflects the high demands of managing a prop firm in today’s landscape.
Fewer Firms, Bigger Players
As more prop trading firms consolidate, traders may find fewer options but more stability among the remaining companies. TradingFunds, which has been in the industry for over a year, offers accounts up to $600,000 and stands to grow further with this acquisition. The financial details of the deal were not made public.
This shift in the industry shows how smaller firms are being absorbed by larger ones, creating a more concentrated market. For traders, the focus will be on finding firms that offer reliability and strong opportunities for funding.
