Proprietary trading firm The Funded Trader shared updates on
its financial and operational recovery following a recent relaunch. The firm
acknowledged previous difficulties tied to an unsustainable payout-to-revenue
ratio, with some months seeing payouts reach 75–80% of revenue from challenge
fees.
“Previously, we were operating with an unsustainably high
payout-to-revenue ratio, with some months requiring payouts of almost 75–80% of
the revenue generated from challenges,” the prop firm shared on X.
Outstanding Obligations Being Addressed
Since restarting operations, The Funded Trader has
implemented measures to address outstanding obligations. Profits earned during
the recovery phase are being used to clear debts owed to vendors, traders, and
affiliates.
Larger payouts have
been structured into payment plans, and smaller accounts are gradually being
processed. The company stated that 900 traders are still awaiting payment and
outlined an internal strategy to settle these obligations.
Since the relaunch of our operations, we have seen a significant improvement in our payout-to-revenue cost ratio.Previously, we were operating with an unsustainably high payout-to-revenue ratio, with some months requiring payouts of almost 75–80% of the revenue generated from…
— The Funded Trader (@thefundedtrader) November 20, 2024
Earlier, The Funded Trader announced that its sister
company, The
Futures Traders, will introduce Volumetrica Trading as a new platform.
Volumetrica focuses on order flow analysis. The Funded Trader’s technology will
support Volumetrica’s offerings in the trading industry, as reported by Finance Magnates.
Operational Recovery in Progress
The firm also resumed activity on paused accounts valued at
$100,000 or higher, emphasizing caution in managing risks tied to larger
accounts. The company indicated its commitment to ensuring long-term
sustainability while continuing payouts.
“We have begun releasing accounts that were paused of 100K
and larger, and we are committed to continuing this process,” the company
added.
Reflecting on broader industry trends, The Funded Trader
pointed to signs of financial strain at other firms and urged users to be
vigilant about recognizing operational challenges. While stating that full
recovery has yet to be achieved, the firm expressed confidence in its progress
toward restoring trust and stability.
This article was written by Tareq Sikder at www.financemagnates.com.
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