One of the most talked-about prop firms of 2025 has officially shut down.
On January 18, FundingTicks announced it was ceasing operations, just weeks after controversial rule changes triggered heavy backlash from the trading community.
While the firm called the shutdown a “strategic decision,” the sequence of events leading up to it highlights a much bigger issue in prop trading: trust and counterparty risk.
What Triggered the Fallout
In mid-December, FundingTicks introduced several rule changes that directly impacted funded traders, including a new minimum trade hold time, higher daily profit requirements, more profitable days needed for payouts, and reduced profit splits.
The main issue was not the changes themselves. It was that many traders reported the rules were applied retroactively.
As a result, traders claimed that profitable days were deleted, accounts were breached after qualification, and some accounts were closed shortly after hitting payout targets. For many, it felt like the goalposts had been moved after the work was already done.
Community Reaction Was Swift
The response from traders was immediate and public.
Trustpilot ratings dropped sharply. Prop firm review platforms like Prop Firm Match delisted FundingTicks. Social media filled with “rug pull” accusations. Affiliates and educators distanced themselves from the firm.
What had been marketed as a trader-friendly futures prop firm quickly became one of the most criticized names in the industry.
January 18: FundingTicks Shuts Down
On January 18, FundingTicks announced a full shutdown. On its website, the firm described the decision as a disciplined exit, stating it was reallocating resources for long-term value rather than continuing under current conditions.
Refunds and Payouts
To its credit, FundingTicks published a clear outline for refunds and payouts:
The firm stated payments are being processed “in good faith” as a goodwill gesture, without admitting liability. Processing is reportedly underway, though timelines may vary.
CEO Commentary
In a widely shared message, CEO Khaled said he did not want to continue investing time and effort into the business. His stated approach was to refund accounts, pay what was owed, and close the firm.
What AboutFundingPips?
FundingTicks’ sister firm, FundingPips, continues to operate independently.
The structured refund plan appears designed to protect FundingPips’ credibility, but reputational spillover is unavoidable. Traders will be watching closely.
If You Had a FundingTicks Account
If you were affected, check your dashboard and emails and contact support promptly regarding your refund or payout status. Keep records of all communication.
This is a tough outcome, but compared to many prop firm failures, FundingTicks is at least attempting to wind things down in an orderly way.
The Bigger Lesson for Traders is thatFundingTicks is a reminder that prop trading is not just about strategy and execution. It is also about who you are trading with.
Sudden rule changes expose traders to counterparty risk, especially in fast-growing firms.
Before choosing a prop firm, ask:
Red Flags to Watch For
Be cautious if you see several of these signs:
The FundingTicks shutdown is unfortunate, but it is also instructive.
In prop trading, trust is everything. Once it is lost, recovery is difficult.
Trade your strategy well, but be just as selective about the firm you choose to trade with and don’t have all your eggs in one basket - diversify your counterparty risk by trading with multiple firms.