Sway Markets ceased brokerage operations due to increasing regulatory and liquidity challenges. The company chose to strategically focus on its more stable and less regulated prop trading arm, Sway Funded.
Sway Markets operated as a contract for difference (CFD) broker, providing trading services to retail clients in the forex and derivatives space. In March 2024, it entered the proprietary trading market with the launch of Sway Funded, a prop firm offering funded accounts to retail traders after completing simulated trading challenges.
Although not among the most widely recognised global brands, Sway Markets quickly became known for aggressive expansion strategies. In under a year, it acquired several smaller prop firms, including Karma Prop Trader, My Flash Funding, GlowNode, and ETX Funding, many of which were facing financial or technical difficulties.
This rapid expansion signalled a company on the rise. However, just months after consolidating these entities, the parent company unexpectedly withdrew from the market.
Has Sway Markets been acquired?
The most prominent explanation for the closure is a change in ownership or acquisition. Industry reports, including those from The Trusted Prop and Finance Magnates, indicate that Sway Markets has likely been acquired by a new broker, Liquid Brokers.
Liquid Brokers operates under the licence of Pulse Markets Pty Ltd, an Australian company that holds an AFSL licence (220383). According to Liquid Brokers’ website, it is not an issuer of over-the-counter (OTC) derivatives and provides services exclusively to wholesale clients.
This regulatory shift may explain the closure: if the acquiring entity operates under a different service model or client classification, retail brokerage services may have been deemed incompatible with its existing framework.
Operational and regulatory considerations
Several other potential factors may have contributed to the closure of Sway Markets’ brokerage operations:
Change in regulatory environment: CFD brokers globally have come under increasing regulatory scrutiny in recent years. From leverage restrictions to mandatory client protection measures, regulatory compliance has become more demanding. For a relatively new broker operating in multiple jurisdictions, maintaining full compliance across client onboarding, transaction reporting, and fund security can be resource-intensive.
It is possible that, following the acquisition or internal review, the firm decided to withdraw from retail brokerage to avoid the ongoing regulatory complexities and focus instead on the more flexible, less regulated prop trading model.
Liquidity challenges in a competitive market: The CFD and retail brokerage industry has become increasingly competitive. Maintaining liquidity, order execution reliability, and platform performance can be difficult for mid-sized brokers. In parallel, the cost of acquiring and retaining clients has also increased due to marketing pressures and narrow profit margins.
Sway Markets’ acquisition history (e.g. Karma Prop Trader and My Flash Funding) shows that it had already absorbed firms with liquidity-related issues. Sustaining all those acquired operations while managing its own brokerage might have created operational strain.
Exiting the brokerage segment could have been a way to reduce liabilities and simplify business operations under a new entity.
Strategic refocus on prop trading: Another possible reason behind the closure is a strategic decision to prioritise Sway Funded. While retail brokerage businesses often operate on thin margins and face high compliance costs, proprietary trading firms work on a different model—allocating simulated capital to traders under strict performance metrics.
Sway Funded had demonstrated relative success and stability by mid-2024, absorbing clients from distressed competitors and offering a custom trading platform (Sway Charts). The platform’s continued operation and the ability to move users to Liquid Charts (under Liquid Brokers) suggest a controlled pivot, not a collapse.
By stepping away from the retail brokerage model, the company may be aligning itself with a lower-risk, higher-margin business segment.
Why Sway Funded continues to operate
Importantly, Sway Funded, the prop trading arm of Sway Markets, continues to operate without interruption. This shows that the brokerage closure was not due to a total business failure but rather a selective realignment.
Key reasons why Sway Funded remains unaffected include:
- It operates on a challenge-based model, not tied to retail trading regulations.
- It does not handle client funds in the same way a broker does.
- It likely remains profitable due to controlled risk exposure and predictable revenue from challenge fees.
By maintaining this operation, the company preserves its brand value and existing trader relationships while reducing the regulatory overhead that comes with running a full-fledged brokerage.
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.
