What happened

In August 2023, the Ontario Securities Commission (OSC) and the US Commodity Futures Trading Commission (CFTC) issued enforcement actions against MyForexFunds, then one of the largest prop firms in the industry.

Regulators argued that what was marketed as “opportunity to trade firm capital” was in substance an unregistered securities/commodities trading operation.

What the industry took away

  1. “Simulated environment” framing alone does not avoid regulatory scrutiny.
  2. Scale does not equal safety — MyForexFunds was a market leader at the time.
  3. Jurisdiction regulatory shifts directly affect continuity of service.

What traders should verify today

  • Which jurisdictions’ regulators currently have visibility on your firm?
  • Have similar firms faced enforcement actions recently?
  • Are emergency contact details for the firm’s operator (registered address, responsible parties) publicly available?