Indigo Trader Funding, a prop trading firm that had earlier gone silent on its social media channels, today (Wednesday) confirmed the closure of its operations as it “failed in this business endeavour.” Finance Magnates earlier reported that the company had even applied for its name to be struck off the UK’s official register.
“Indigo Trader Funding ceased trading and, as of today, has ended any agreements/partnerships attributed to the operation of the evaluation model prop firm,” noted the announcement released today by the prop trading firm.
Announcement
Official Statement pic.twitter.com/G166F7IRVy
— Indigo Trader Funding (@IndigoFundingUK) August 20, 2024
The official announcement came only a day after the company’s name was officially removed from the company registry. It applied for the strike-off on August 12.
The disappearance of the prop trading firm from Discord and other social media channels only fuelled anxiety among its customers. One trader even claimed on social media that he had made $27,000 in profits with his Indigo Trader Funding account and was perplexed by the strike-off decision and the lack of communication.
I am up $27,000 on my $500k @IndigoFundingUK prop account, but received an letter that they submitted AN APPLICATION TO STRIKE OFF!
I would require an official statement! Does the community know more?
Is this another prop firm going down the drain…? pic.twitter.com/aF8rhew3RP
— Bernd Skorupinski (@BerndSko) August 14, 2024
“We would like to sincerely apologise for the lack of communication over the past few weeks,” the official announcement added. “We recognise that this has led to a lack of clarity regarding the status of active accounts and has fuelled inaccurate speculation.”
The announcement further stated that “if it had been possible, this statement would have been made sooner.” However, it remains unclear what prevented the company from properly communicating with its clients.
Additionally, the latest statement detailed that “any remaining available funds that are controlled by our operating partners will be allocated to refunding any active (paid-for) accounts.”
Promoting the Services of Eightcap
Indigo Trader Funding began operations earlier this year. It was promoting the challenges organised by Eightcap, a contracts-for-difference broker offering services to prop trading firms.
“A combination of a native marketing strategy, high competition, and a rapidly increasing failure rate of firms contributing to potential sales consolidating around the market leaders has meant that our continued growth as a promoter and referrer could not be sustained,” the fallen prop trading firm added.
As Finance Magnates reported earlier, Lucas Thomas headed the now-closed prop trading firm as the President. He had also launched two other companies earlier: Thomas Forex Trading in 2021 and Woofly and L&N in 2022. However, Woofly and L&N disappeared from the market as quickly as Indigo.
Meanwhile, several other prop trading firms have also ceased operations recently. According to some estimations on social media, the future of over twenty such platforms is in jeopardy. Interestingly, Astra Capital Group has come forward with a willingness to acquire the shuttered prop firms.
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