Prop Firm Payment Disruption: The Deel Payout Halts
10 mins read

By: sarvesh

Prop Firm Payment Disruption: The Deel Payout Halts

Deel CANCELS all prop firms

A lot of people are asking me about "Deel" and what's happening with the payment system in the prop firm industry. What most people don't understand is that "Deel" is simply covering its own interests.

Essentially, "My forex fund" made a significant mistake, and there's a law in the United States called "Wire Fraud." Since "Deel" was handling the funds on behalf of "My forex fund," they are legally liable. Again, I'm not a lawyer; this is just my conjecture, but it's essentially what their lawyers are advising them.

fundednext

So, they want to distance themselves from everyone involved and essentially say, "We're making billions of dollars from other businesses, and we don't want to deal with any compliance issues related to you. You're on your own."

Impact on the Prop Firm Industry

So, what does this mean for the Prop Firm industry? Well, not much because most companies will still wire transfer your owed funds or find another payment processor to handle transactions. This situation is reminiscent of what happened in 2007-2008 with the Dodd-Frank bill.

Following the 2008 crash, they enacted stringent regulations that essentially made it too burdensome for banks outside the United States to do business with U.S. customers. It's not because it's illegal, but the compliance requirements and paperwork became so extensive that it simply wasn't worthwhile to have U.S. clients.

For instance, Switzerland, known for its neutrality and being a financial haven, had to part ways with many customers. Initially, they started by discontinuing services for clients with net worth between 1 to 10 million, and around 2013-2015, they even ceased services for clients with net worth over 100 million.

As a result, the financial business shifted to Dubai. Dubai has become the new Switzerland in this regard, which is why many prominent companies, such as Funding Traders, are now based in Dubai. Essentially, "Deel" is just another company not willing to comply with U.S. regulations.

The Impact of US Regulations

US regulations are stringent. They aim to force you to operate within the United States' ecosystem, which is heavily dominated by a few major players. The cost of compliance for mid-level players like you is prohibitively high. It's simply something you'd rather not deal with, and that's what's happening.

In reality, most platforms can still wire transfer your funds, and many are exploring alternative methods, such as cryptocurrency.

As for "Deel," it's not a deal-breaker. Let's play on the words here. So, forget about "Deel." Deel is essentially a group of intermediaries, businessmen, and, well, good luck to them.

fundednext

Anyway, "Deel" is not a problem, and the prop trading industry is not a problem. Right now, there's nothing quite like this industry that allows someone to turn $1,000 into $100,000. So, if you dedicate some time, perhaps six months to a year, you stand a good chance of achieving financial independence.

You can earn what someone working for a year makes in just a couple of months. As I've mentioned before, nothing like this will last forever, especially when regulations inevitably come into play. When they do, you can bet that they won't be in your favor.

So, while the opportunity is ripe, seize it. Good luck, and thank you.

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