Sway Markets, a CFD broker and prop firm, ceased operations. While its brokerage services have ended, Sway Funded continues to operate and support existing traders.
Sway Markets, a broker and prop firm operator, ceased all brokerage operations, marking a significant development in the retail trading and proprietary trading space. Known primarily for its prop trading brand, Sway Funded, and in-house trading platform Sway Charts, the decision raised questions about client impact, operational continuity, and the broader implications for the prop trading industry.
Founded over three years ago and having made significant acquisitions in the prop trading space, Sway Markets has grown to become a recognisable name among retail traders and proprietary trading hopefuls. The closure has led to questions about what this means for its existing users, the future of Sway Funded, and how the broader market is responding. While initial reactions suggested uncertainty, further investigation points towards a strategic acquisition by a newly formed entity called Liquid Brokers.
Understanding Sway Markets and its background
Sway Markets Pty Ltd, registered under company number 001300469, began operations in 2021 as a Contract for Difference (CFD) broker. The company initially offered trading services in foreign exchange (FX), commodities, and indices, catering to both retail and professional clients in the online trading sector.
In March 2024, Sway Markets entered the proprietary trading space with the launch of Sway Funded. This division provided traders with access to evaluation-based funding programmes, commonly known as “prop firm challenges,” where traders could qualify for funded accounts based on performance criteria.
Within its first year, Sway Funded expanded rapidly, acquiring several prop trading firms that were experiencing operational or financial difficulties. The firms acquired include:
- Karma Prop Trader
- My Flash Funding
- ETX Funding
- GlowNode
These acquisitions were strategic. Many of the acquired firms were facing challenges such as liquidity shortfalls, platform issues, or declining user engagement. By taking over their assets and integrating their traders into the Sway Funded ecosystem, Sway Markets aimed to consolidate market share and strengthen its position within a highly competitive industry.
The acquisition of these firms also enabled Sway Funded to grow its user base and scale its technology offerings more efficiently. This consolidation strategy allowed the company to absorb existing client portfolios, preserve trader continuity, and improve platform stability, contributing to its growing presence in the proprietary trading market.
Why did Sway Markets cease operations?
As of now, Sway Market has not issued a formal public statement detailing the exact reason behind its closure. However, based on available information from multiple sources, it is strongly believed that the company has been acquired by Liquid Brokers.
Here are the key indicators supporting this conclusion:
“Sold” status on social media: The X (formerly Twitter) profile of Sway Markets was updated with the word “sold” and subsequently had all its posts removed.
Website inaccessibility: The official website of Sway Markets became unresponsive around the same time as the announcement.
Transition notices to traders: Some users reported receiving notices indicating a transfer of accounts and services to Liquid Brokers, a new brokerage operating under the license of Pulse Markets Pty Ltd.
This evidence suggests a strategic acquisition or merger, possibly aimed at restructuring and rebranding the brokerage side of Sway Market’s operations while continuing the more successful Sway Funded platform.
Impact on existing traders and clients
While the closure may appear disruptive at first glance, Sway Markets has taken measures to ensure minimal disruption to its traders, especially those using the Sway Funded platform. The following developments have been confirmed:
Continued use of sway charts
Sway Charts, the in-house trading platform developed by Sway Markets, will remain operational. Traders in the challenge phase can continue trading using Sway Charts until they complete their evaluation.
Transition to liquid charts
Once traders pass their challenge and qualify for a funded account, they will be moved to Liquid Charts, which is the platform associated with Liquid Brokers. To facilitate this transition, traders are advised to:
- Complete their challenge on Sway Charts as usual.
- Contact Sway Funded’s support team to initiate the transition.
- Await the migration of their funded account to the new platform.
At this stage, there is no confirmed change in trading conditions such as spreads, commission rates, or execution speed under Liquid Brokers. However, traders are encouraged to monitor for updates closely.
No new challenge accounts
Sway Funded has paused the creation of new challenge accounts. This means that while existing traders remain unaffected, no new traders will be onboarded until further notice or until the transition is finalised.
Sway Funded’s ongoing operations
Despite the closure of Sway Markets as a brokerage, Sway Funded continues to operate without interruption. Its track record in the prop trading industry is notable for strategic acquisitions and client-first responses to crises.
Acquisition timeline:
- August 2024: Acquired Karma Prop Trader, rescuing clients and offering continued access to capital challenges.
- July 2024: Formed an agreement with My Flash Funding, which had suffered platform issues. While My Flash Funding pivoted to educational content, its active clients were transferred to Sway Funded.
- Other acquisitions: ETX Funding and GlowNode were also integrated into Sway Funded, consolidating its position in the competitive prop trading landscape.
The continuity of Sway Funded’s operations signals that the company may now function independently, backed by or operated in collaboration with Liquid Brokers.
Lessons for traders and the industry
The Sway Market closure holds several important lessons for traders, investors, and industry stakeholders:
Risk of centralised platforms
The sudden shutdown illustrates the risks associated with using platforms that do not provide clear operational transparency or regulatory safeguards. Traders must verify broker registration, client fund segregation practices, and communication protocols.
Due diligence is key
Sway Funded’s continued operation is a relief, but many traders were caught off guard by the brokerage closure. This reinforces the importance of conducting thorough research before joining any trading or prop platform.
Prop firm industry consolidation
The acquisition trend—from Karma to My Flash to GlowNode—highlights that smaller prop firms may struggle independently and often become acquisition targets. This can be positive for clients when done transparently, but also brings integration risks.
Regulatory oversight
The transition from Sway Markets to Liquid Brokers should prompt reflection on regulatory jurisdiction, especially as the latter operates under an AFSL but for wholesale clients only. Clear regulatory coverage for end-users is vital in high-risk industries like CFD and prop trading.
Shikha Negi is a Content Writer at ztudium with expertise in writing and proofreading content. Having created more than 500 articles encompassing a diverse range of educational topics, from breaking news to in-depth analysis and long-form content, Shikha has a deep understanding of emerging trends in business, technology (including AI, blockchain, and the metaverse), and societal shifts, As the author at Sarvgyan News, Shikha has demonstrated expertise in crafting engaging and informative content tailored for various audiences, including students, educators, and professionals.
