The prop trading firm Indigo Trader Funding confirmed the closure of its operations on Wednesday, 21st August 2024, citing failure in the business endeavor as the reason.
According to the company’s notice, it has ended any partnership/agreement attributed to the evaluation model prop firm operations. The company was removed from the official UK company register, and customers were confused when it went mute.
A Planned but Unclear Move
Indigo Trader Funding officially closed its operations on August 12, a day after its name was removed from the company registry. The company applied for the removal on August 12.
The firm’s silence heightened customers’ anxiety. One expressed his frustration on social media, claiming to have made a $27,000 profit with his Indigo account.
According to the official announcement, the prop trading firm apologizes for the lack of communication and recognizes the lack of clarity about active accounts, which has led to inaccurate speculations.
The firm stated it would have issued the statement sooner, but it was impossible. The reason for the delayed communication remains unclear.
Further, the announcement indicated that the remaining partners-controlled funds will refund the active (paid-for) accounts.
Eight Cup Services Promotion
Indigo Trader Funding kicked off earlier this year, promoting Eightcap-organized challenges. The former is a CFD (contract for difference) broker serving prop trading firms.
The prop trader added that their continued growth as a promoter and referrer couldn’t be sustained. That’s due to a combined native marketing strategy, heightening firms’ failure rate, and high competition, leading to potential sales consolidation around the market’s top performers.
The president of the recently closed prop trading firm, Lucas Thomas, launched two other companies: Thomas Fore Trading and Woofly and L&N, in 2021 and 2022, respectively. Like their Indigo counterpart, both quit the market after a short while.
Other prop trading companies have also shut down. According to social media estimates, the future of over twenty of them is endangered. Fortunately, Astra Capital Group is willing to acquire the shut-down prop firms.
