AXE Securities Acquires Forex Funder, Expands into Prop Trading

AXE Securities, a well-known contracts for differences (CFD) broker located in the Bahamas, has made substantial inroads into the fast-developing prop trading business. The broker has strategically bought The Forex Funder (TFF), a Dubai-based prop trading business formerly owned by Tommy Cobain, a well-known trading influencer with over 148,000 followers on X (formerly Twitter).

The purchase, announced on Tuesday, represents AXE Securities' debut into the prop trading business, which has seen steady growth in recent years. Although the broker did not divulge the actual financial terms of the transaction, it was said that the purchase cost “a few million” dollars. This purchase is anticipated to broaden AXE Securities' service offerings, enabling it to serve a broader spectrum of traders and investors.

Strategic Acquisition to Broaden Services

AXE Securities' move to buy The Forex Funder is part of a larger goal to improve its services and provide traders with additional tools and resources to thrive in the financial markets. Tahsin Haykal, Managing Director of AXE Securities, stressed that the purchase is consistent with the company's long-term aim of empowering traders. “We are confident that our combined expertise will improve the trading experience for all TFF clients,” Haykal said, emphasizing the strategic significance of the transaction.

Under new ownership, the Forex Funder will continue to function as an independent business with the same identity and customer base. However, the firm's management has changed, with Haykal and Domantas Mocevicius, another Managing Director at AXE Securities, taking over leadership responsibilities. Haykal will supervise day-to-day operations and develop the firm's market presence, while Mocevicius will be in charge of improving the firm's infrastructure, risk management processes, and compliance frameworks.

The Growing Trend of Prop Trading Firm Buyouts

The purchase of The Forex Funder by AXE Securities is part of a more significant trend in the prop trading business, in which major financial corporations acquire smaller, sometimes failing prop trading enterprises. This trend is gaining traction as more businesses see the value of prop trading as a profitable and scalable business model.

Numerous major buyouts have occurred in the business recently. Sway Funded, for example, purchased the now-defunct Karma Prop Traders. At the same time, Astra Capital stated plans to buy any prop business that closes or ceases operations, absorbing all of its traders and merging them onto its platform. These acquisitions are altering the prop trading environment, with bigger businesses acquiring smaller ones to broaden their market reach and product offerings.

As the business evolves, prop trading companies that fail to meet market needs or encounter operational issues are becoming more attractive acquisition targets. This tendency is projected to continue as the prop trading market develops, creating chances for consolidation and development.

The Forex Funder's Strong Social Media Presence

The Forex Funder has created a strong social media presence, which has contributed significantly to its development and popularity among traders. The company has 126,700 followers on X, 81,600 on Instagram, 10,500 subscribers on Telegram, 10,200 on YouTube, and over 5,400 followers on TikTok. Despite this outstanding online presence, the firm's Discord link has remained offline, with a warning indicating that it may be expired or prohibited.

The Forex Funder has a loyal customer base with over 6,000 active traders and 600 funded accounts. However, it has had specific issues, as indicated by its Trustpilot rating of 2.7, which is classified as 'poor.' Based on approximately 1,600 user ratings, this grade shows that customer happiness and service quality might be improved.

A New Era for The Forex Funder

Under AXE Securities' new management, the Forex Funder is poised for a new era of growth and development. The emphasis will be on strengthening the company's operations, increasing its market presence, and boosting its service offerings. Haykal and Mocevicius are devoted to securing the company's long-term viability while also emphasizing their commitment to helping traders at all levels.

This purchase not only signals AXE Securities' debut into the prop trading market but also highlights the rising significance of this sector in the financial industry. As the prop trading market evolves, companies like AXE Securities are preparing to seize new possibilities and drive future development.

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