Prop Firms That Shut Down in 2023-2026: The Full List

TLDR: Between 2023 and early 2026, over 80 proprietary trading firms ceased operations — roughly 13–14% of all global operators. The closures ranged from regulatory shutdowns (MyForexFunds) to voluntary exits (MyFundedFX) to outright fraud (SurgeTrader, Funded Engineer). Below is the complete list of confirmed closures, why each firm failed, and how to protect yourself going forward.

The prop firm industry lost more firms between 2024 and 2026 than most traders realize. What started with the MyForexFunds regulatory action in September 2023 turned into an industry-wide reckoning that wiped out dozens of firms in a single year.

Some of these firms shut down because of external pressure — MetaQuotes pulled their trading platform licenses. Others collapsed under their own weight — unsustainable business models, fraud allegations, or simply running out of cash before challenge fees could cover payouts.

This page tracks every confirmed prop firm closure since 2023. We update it as new shutdowns occur.

The Complete List of Prop Firm Closures (2023–2026)

Note: Industry analysts estimate 80–100 firms total closed between February 2024 and late 2025. The table above includes only firms with publicly confirmed closure details. Dozens of smaller firms — many operating for under 12 months — disappeared without formal announcements. If you lost capital at a firm not listed here, the DealPropFirm tracker maintains a broader list.

Why So Many Firms Failed at Once

Three forces converged in 2024 to create the largest wave of prop firm failures in the industry's history:

1. MetaQuotes revoked platform licenses. In February 2024, MetaQuotes — the company behind MetaTrader 4 and MetaTrader 5 — began pulling white-label licenses from prop firms that served US clients or operated without proper broker relationships. Because most prop firms relied on MT4/MT5 as their primary trading platform, this single decision eliminated the technology backbone of dozens of firms overnight. Firms that could not migrate to alternatives like cTrader or DXtrade were forced to shut down.

2. Unsustainable business models collapsed. Many prop firms operated on a model where challenge fees from new sign-ups funded payouts to existing funded traders. This model works when the firm is growing — but breaks down when growth slows, pass rates increase, or payout obligations exceed incoming fee revenue. Firms without adequate reserves or risk management were caught when the MetaQuotes disruption slowed new sign-ups and triggered a rush of payout requests simultaneously.

3. Regulatory pressure increased. The CFTC's action against MyForexFunds in 2023 sent a warning across the industry: regulators were paying attention. Firms with questionable practices — delayed payouts, opaque rules, no corporate transparency — faced increasing scrutiny from both regulators and traders. Some firms chose to shut down proactively rather than face investigation.

Warning Signs a Prop Firm Might Be at Risk

These patterns appeared at nearly every firm that shut down. If you see them at a firm you are trading with, pay attention:

Payout delays that extend beyond stated timelines. A single delayed payout can happen for administrative reasons. When multiple traders report delays of 2+ weeks beyond the firm's stated payout cycle — and the firm responds with vague explanations — that is the earliest and most reliable red flag.

Sudden rule changes without notice. Several firms that later shut down introduced new restrictions on funded accounts (tighter drawdown, new consistency rules, reduced profit splits) in the weeks before closure. These changes typically reduce the firm's payout obligations, which suggests cash flow problems.

Trustpilot rating drops of 0.3+ points within 2–3 months. FundingTicks saw its Trustpilot rating drop from 4.1 to 3.2 before shutting down in January 2026. A rapid decline in review scores — especially driven by payout complaints — often precedes closure.

Corporate entity changes or rebranding. MyFundedFX rebranded to SeacrestFunded before closing its prop trading operations entirely. Entity changes can indicate restructuring ahead of a shutdown, especially when the firm does not clearly explain the reasons to traders.

Radio silence on support channels. Fidelcrest went dark on all support channels before its website was replaced with unrelated content. When a firm stops responding to tickets, Discord messages, and emails simultaneously, assume the worst and withdraw any available funds immediately.

Which Major Firms Are Still Operating in 2026

Despite the industry-wide shakeout, several established firms have continued operating, paying traders, and maintaining strong reputations:

• FTMO — Operating since 2015. Trustpilot 4.8/5 from 38,600+ reviews. Supports MT4, MT5, cTrader, DXtrade. Profit split scales to 90%.
• FundedNext — Paid out over $144M to traders in 2025 alone. Trustpilot 4.5/5. Multiple challenge types including futures.
• The5ers — Trustpilot 4.8/5. Scaling path to real capital. Operational since 2016.
• Alpha Capital Group — Trustpilot 4.7/5 from 16,900+ reviews. $120M+ in verified payouts. On-demand payout option.
• Blue Guardian — Among the cheapest challenge fees in the industry ($184 for $100K 3-Step). Over 1,400 Trustpilot reviews.

The firms that survived the 2024–2025 shakeout share common traits: they operate with transparent corporate structures, maintain consistent payout records, support multiple trading platforms (reducing MetaQuotes dependency), and have been operating for 3+ years. For a detailed look at how evaluations work at these firms, see our guide on how prop firm evaluations actually work.

How to Protect Yourself

1. Never keep more capital in a prop firm account than you can afford to lose. Your challenge fee is your real risk. Once you are funded, the account balance is the firm's capital — but unpaid profits that you have earned are still at risk if the firm shuts down before your next payout.

2. Request payouts at the earliest eligible date. Do not let profits accumulate across multiple payout cycles. Every extra day your earned profits sit in the firm's system is a day of exposure to firm-level risk.

3. Verify the firm's payout history before buying a challenge. Check Trustpilot for recent payout-related reviews. Search Reddit and Discord for "payout" mentions. A firm that has paid consistently for 3+ years is statistically safer than one that launched 6 months ago.

4. Diversify across firms if you trade with significant capital. Funded traders with $200K+ in combined account sizes should spread that allocation across at least 2 firms. If one firm shuts down, you retain your accounts at the other.

5. Watch for the warning signs listed above. Set a Google Alert for your firm's name plus keywords like "shutdown," "payout delay," and "closing." Early warning gives you time to withdraw before a shutdown freezes your funds.

Frequently Asked Questions

Why did so many prop firms shut down in 2024?

Three factors combined: MetaQuotes revoked MT4/MT5 licenses from firms without proper broker relationships, the CFTC's action against MyForexFunds increased regulatory scrutiny across the industry, and firms with unsustainable business models (where challenge fees funded payouts) ran out of cash when growth slowed. The result was 80–100 confirmed closures between February 2024 and late 2025.

Is MyForexFunds coming back?

MyForexFunds has announced plans for a 2026 relaunch following a legal victory in which the CFTC's case was dismissed. However, the firm's operations have been suspended since September 2023, and the full terms of any relaunch are not confirmed. Approach with caution and verify directly on the firm's official channels before committing any funds.

What happens to my money if a prop firm shuts down?

Your challenge fee is typically lost. Unpaid profits that were pending payout may or may not be recoverable, depending on how the firm handles its shutdown. True Forex Funds left ~$1.2M in outstanding payouts unresolved. SurgeTrader processed only 30% of owed payouts by August 2024. Some firms offer partial refunds or settlement plans, but there is no industry-wide guarantee.

How do I know if my prop firm is safe?

Look for: 3+ years of continuous operation, a Trustpilot rating above 4.5 from 5,000+ reviews, verified payout totals, support for multiple platforms (not just MT4/MT5), and a transparent corporate structure. Firms like FTMO, The5ers, and FundedNext meet these criteria. No firm is risk-free, but these indicators significantly reduce your exposure.

Should I avoid prop firms entirely because of the shutdowns?

No — but you should be selective. The firms that survived the 2024–2025 shakeout are, on average, better capitalized and more transparent than the ones that failed. The industry consolidated around stronger operators. The key is choosing established firms with verified payout records and diversifying your exposure if you trade with meaningful capital.

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