True Forex Funds: when the regulator warned, and the company fell anyway

For years the company appeared on the CFTC's "red list" for illegally working with U.S. clients. When MetaQuotes revoked its licence without warning in February 2024, the collapse became only a matter of time. The firm's management called the decision "incomprehensible and irrational" — but could no longer stop the consequences.

True Forex Funds, a Hungarian company headed by CEO Richard Nagy, offered traders the model familiar across the industry: pass a paid skills assessment and gain access to a "funded" account. The problem was that the company served clients in the United States without proper registration with the U.S. regulator — and it was precisely for this that, in June 2023, the CFTC added True Forex Funds to its RED List, flagging the firm as having registration deficiencies. This was the first time a prop company had been so directly and publicly warned long before its actual collapse.

The company ignored the warning and kept operating. The reckoning came on 2 February 2024, when MetaQuotes revoked True Forex Funds' licence to use the MT4 and MT5 platforms without warning — according to the company, the reason was its use of a third-party equity-synchronisation tool that MetaQuotes deemed unacceptable. Nagy publicly called the decision "incomprehensible and irrational", but the firm's operations effectively froze for several months, and client funds remained inaccessible. The company tried to switch to alternative platforms, including cTrader and Match-Trader, but client trust had already been seriously undermined.

On 14 May 2024 True Forex Funds officially declared insolvency and its final closure. The company was left with debts to roughly 300 traders totalling about $1.2 million.

Published 1 June 2024