For two years the pitch has been: stick with prop firms backed by real, regulated brokers. On June 6, 2026, one of them stopped. ATFunded, the prop trading arm of CFD broker ATFX, paused operations and started a full review of the business, less than two years after launching in October 2024.
What happened
In its notice to traders, as reported by trade press, ATFunded said: "The prop trading industry has evolved considerably, and we believe it is important to take the time to assess whether our current models are sustainable for the long term." It added: "We have chosen to pause, stabilise, and evaluate alternative models that better align trader success with company sustainability."
What traders were told, per LeapRate:
- Customers with active accounts would get a full refund of purchase fees.
- Funded traders with eligible profits would be paid under the firm's rules.
- The MetaTrader 5 environment was put into close-only mode, with all trades to be closed by 1 pm EST on the day of the announcement.
- No timeframe was given for the review, and there was no word on whether operations would resume.
There was leadership churn beforehand. Reports say ATFunded CEO Joshua Dentrinos left earlier in 2026, only months after joining. Connor Mccourt, who replaced him as general manager, had also left before the pause.
Why a broker would walk away
Broker-backed prop is partly about funnels. Finance Magnates reported that before the pause, ATFX said it had turned over 10% of its prop traders in South America into brokerage clients. Prop brings in beginners cheaply, and some of them later open real-money accounts.
But a broker still has to cover payouts to winners. The core economics show up in the numbers Finance Magnates keeps citing from FPFX Tech: about 7% of challenge buyers ever get a payout. Firms rely on evaluation fees from the other 93% to cover costs and pay winners. If sign-ups slow or a cluster of traders starts winning consistently, the math breaks.
ATFunded isn't the only broker to back out. LeapRate described the pause as adding to "a growing list" of prop firms that have wound down or restructured. According to FinanceFeeds reporting, broker Seacrest Markets, which had folded MyFundedFX into its SeacrestFunded brand, closed its CFD prop accounts on February 6, 2026 to focus on brokerage.
Both sides
Credit where due: This was an orderly pause. There were refunds for active accounts, payouts for eligible funded traders and advance notice. That is very different from the overnight disappearances of 2024.
The worry: If a regulated broker with its own infrastructure and a way to convert prop traders into clients can't make the numbers work, what about the hundreds of unregulated prop firms without those advantages? And close-only mode with a same-day deadline still means traders with open positions had very little notice.
Our take
Our take: "Broker-backed" was sold as a safety feature. ATFunded shows it is really a business decision the broker can reverse whenever the spreadsheet says so. The broker's licence covers its brokerage clients. It does not guarantee the prop arm's long-term commitment. The uncomfortable question from Niv's own framing: if a broker's strategy chief calls the math unsustainable, why do so many firms still advertise it as a career path?
What traders can do
- Don't treat "backed by a regulated broker" as protection for your prop account. Check what entity sells the challenge and which terms apply.
- Take payouts when eligible instead of letting large balances build up.
- Watch for leadership turnover, rule changes and slower payouts. Those tend to show up before a pause.
Key takeaways
- ATFunded (ATFX's prop arm) paused operations on June 6, 2026, less than two years after its October 2024 launch.
- It promised full refunds for active accounts and payouts for eligible funded traders. MT5 went close-only the same day.
- Two senior leaders had left before the pause.
- ATFX's strategy chief publicly questioned the "math" of the prop model.
- Broker backing doesn't guarantee a prop program will continue.
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FAQ
Is ATFunded closed permanently?
ATFunded described it as a pause while it reviews the business. As of the reports, it gave no timeframe and did not say whether operations would resume.
Did ATFunded traders get refunds?
The firm said active account holders would get a full refund of purchase fees and funded traders with eligible profits would be paid under its rules. Timelines were to be sent directly to traders.
What is a broker-backed prop firm?
A prop firm owned by or linked to a regulated retail broker, like ATFunded with ATFX. The broker's licence covers its brokerage business. It does not guarantee the prop program itself.
Loomi.Ai provides educational market research, not financial advice. Trading futures and options involves substantial risk of loss, and backtested results are historical and do not guarantee future returns.
Sources
- ATFX Suspends Its Prop Trading Operations, Finance Magnates
- ATFunded Pauses Operations and Promises Refunds, LeapRate
- ATFX shutters prop trading unit ATFunded, FX News Group
- Prop Trading Slips Down Paris' Agenda as the US Steps Up, Finance Magnates
- FundingPips Invited Traders into PRIME; The T&Cs Made It Mandatory (Drew Niv LinkedIn summary), Finance Magnates