Indigo Trader Funding, a proprietary trading firm, has confirmed its shutdown after going silent on social media, leaving many customers in confusion. The firm, which had applied to be struck off the UK’s official company register, announced its closure due to failure in its business endeavor. This announcement came a day after its name was officially removed from the registry. The lack of communication from the firm had caused anxiety among traders, with one claiming significant profits and expressing concern over the firm’s abrupt decision.
The official statement from Indigo Trader Funding apologized for the communication gap, acknowledging the resulting confusion and speculation. The firm stated that any remaining funds controlled by its operating partners would be used to refund active, paid-for accounts. Despite the closure, the firm had been promoting challenges organized by Eightcap, a contracts-for-difference broker, indicating its active engagement in the trading community.
Why It Had to Happen
Indigo Trader Funding attributed its closure to a combination of factors, including a native marketing strategy, high competition, and a rapidly increasing failure rate among similar firms. These challenges hindered the firm’s growth as a promoter and referrer, making continued operations unsustainable. The firm was headed by Lucas Thomas, who had previously launched other companies, including Thomas Forex Trading and Woofly and L&N, both of which also ceased operations.
The closure of Indigo Trader Funding is part of a broader trend, with several other proprietary trading firms shutting down recently. Social media estimates suggest that over twenty such platforms are at risk. However, Astra Capital Group has expressed interest in acquiring these shuttered firms, potentially offering a lifeline to affected traders.
Indigo Trader Funding’s shutdown highlights the challenges faced by proprietary trading firms in a competitive market. The firm’s inability to sustain its operations demonstrates the importance of effective communication and strategic planning in navigating the complexities of the trading industry. As the market continues to evolve, firms must adapt to changing conditions and leverage opportunities for growth to remain viable.
