According to the recent email that the UK-based mobile-only broker Pipster sent to its clients, the company will have to cease all operations and shut down. The trading firm is going to have to close after only a single year of running its business, allegedly due to ‘external factors.’
During its time, Pipster managed to launch trading apps for iOS and Android operating systems alike. Now, traders who used to enjoy its services will have to find another broker.
Pipster was a company operated by a major technology corporation, known as Finatext. It was also set up in association with GMO Click’s, Z.com Trade, which is the Japanese retail broker’s UK division. According to the terms of the partnership between the two corporations, Finatext would be in charge of providing the necessary technology for the mutual product, while Z.com Trade would allow users to access the new trading service.
As for Pipster, it described itself as a startup, and it seemed to be targeting younger generations of traders. Details such as its marketing materials and new, advanced technology were clearly targeting millennials, with a goal of providing them with an easy-to-use, familiar environment that would attract potential traders.
In fact, its methods were quite similar to BUX, which is another company that wanted to attract younger generations to the trading world. Both firms aimed to do so by creating a mobile app for trading, thus allowing new traders to have constant access to the markets, and trade on the go.
The real reasons remain unknown
However, it appears that Pipster’s efforts did not pay off, and the company recently sent an email to its users, confirming that it will have to close shop. The broker blamed ‘external challenges’ for the shutdown, and said that the decision to close was their own. The company’s clients will have about a month to resolve their pending trades and withdraw their funds, as the company will close on August 30th of this year.
Further, the broker also announced that it would enter a close-only mode two weeks before the shutdown, on August 15th. This means that its users will not be able to open new orders after this date, and the only available actions on the platform will be closing the existing orders.
The situation is certainly interesting, as Pipster is clearly trying to avoid sharing the exact reasons behind the shutdown. The company is FCA-regulated, so it seems unlikely that it had issues with the authorities. However, it also focused on forex and cryptocurrency trading, which may have something to do with the decision.
For now, Pipster has failed to elaborate the decision further, but its officials did confirm that they are hard at work in order to make the process of shutting down as easy as possible. They also requested that the clients close their positions and withdraw their funds entirely. Those who fail to do so by August 30th will be force-closed, and there will be an automatic refund that the company will send to the active users’ accounts.