Proprietary Trading Firm FundedSeat Shut Down
The firm, which managed nearly $700,000 in monthly payouts, is shuttering operations and processing account refunds.
Updated on Sept. 29, 2026 in Stock Markets
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FundedSeat has ceased operations after two years in the proprietary trading industry. The firm has committed to returning active account balances and paying out all pending withdrawals to its users.
Why it matters
The closure follows the company's inability to secure access to essential trading platforms required for its growth strategy. This exit highlights the intense competitive pressures faced by smaller firms in the specialized prop trading market.
FundedSeat provided nearly $700,000 in monthly payouts to its traders. Its closure is part of a larger contraction that saw 80 to 100 other proprietary trading firms shut down throughout 2024.
The players
FundedSeat
A proprietary trading firm that provided daily payout structures to traders before announcing its closure.
Spotware
A trading platform technology provider that restricted new U.S. trader accounts in early 2026.
The details
FundedSeat operated on a daily payout model but struggled to maintain growth due to a lack of access to major industry platforms like NinjaTrader and Tradovate. The firm, founded by Amsterdam-based individuals, ultimately could not overcome these infrastructure limitations. Affected users are now directed to the firm's wind-down process for the return of remaining capital.
Timeline
2024: Between 80 and 100 proprietary trading firms closed.
Q1 2026: Spotware restricted the onboarding of traders based in the U.S.
September 28, 2026: FundedSeat announced it would cease operations.
Money Landscape
The proprietary trading sector is currently undergoing a period of significant attrition. FundedSeat's exit follows a broader industry trend where 80 to 100 firms closed their doors in 2024.
Traders with active accounts at FundedSeat should prioritize verifying their final balances and initiating withdrawal requests immediately. If you have concerns regarding the security of your funds, consider consulting with a financial professional familiar with offshore or specialized trading contracts.
The takeaway
The closure of FundedSeat underscores the importance of assessing a platform's long-term access to stable, major trading infrastructure before committing capital. If you are an active trader, ensure you have documented all recent statements and withdrawal requests to track the status of your account resolution.
Further reading
For more on the current volatility impacting the industry, see our coverage on Stock Markets.
Source note: This article includes information reported by Finance Magnates.
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