
ALT Three years ago (in late 2023), the retail Forex proprietary trading industry faced an existential crisis when regulatory crackdowns and deep-dive industry trackers, such as Verified Trader Funding (VTF), exposed that most major forex prop firms were running completely simulated demo networks rather than providing real market liquidity. The exposure pulled back the curtain on how these firms actually operated behind the scenes, triggering a domino effect that altered retail trading. 1. The Core Exposure: The Simulated Loop (B-Book) Before the 2023 collapse, firms marketed themselves as investment entities looking to fund talent with actual corporate capital. The VTF exposures and subsequent court filings unmasked a different reality: YouTube . FxScouts +1
















