Prop trading firm Propel Capital has shut down just 14 months after its launch, saying competition in the industry has made operations unsustainable. The company’s website has also gone offline.

Fierce Competition Cited

In an announcement posted on X, the company's Founder and CEO Mitchell Ali said the decision followed months of mounting pressure as rival prop firms cut prices and loosened trading rules to attract clients. The company has promised more updates on Discord Channel, X Page, and through email.

“The sheer volume of competition in the market has led us to a position where I believe that scaling the business would go against our goal of sustainability,” Ali said. “As you have probably noticed, firms across the industry have significantly increased their offerings, with higher discounts and relaxed rules. I do not believe we can compete with these offers without selling evaluations at a loss, which we refuse to do.”

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The company has promised refunds to clients “who qualify,” saying it will wait for a few weeks to see if another individual or corporation will continue with the brand. “We will no longer be processing any payments, and all trading activity will be halted,” the announcement mentioned.

A screenshot of Propel Capital's financial report, Source: Companies House

Companies House filings from December 2024 show Propel Capital held just over £3,000 in assets against more than £150,000 in liabilities. The firm is registered in the UK, with Ali listed as its sole employee.

More Prop Firms Close

Propel Capital joins a growing list of prop firms that have failed to sustain their operations in recent months. Germany-based Funded Unicorn, once considered among the country’s largest prop trading firms, shut down operations last month.

The sudden collapse has revived concerns about whether some firms’ business models are sustainable in an increasingly competitive and volatile sector. Unlike most prop firms that depend on trader challenge fees and simulated accounts, Funded Unicorn adopted a distinctive A-book model.

Industry sources show that at least 50 prop trading firms ceased operations last year alone. Among the companies that were forced to shut their operations are Funded Engineer, Karma Prop Trader, and Fund For Trader.

Source: Finance Magnates