A prominent funded trader has come forward to share a cautionary tale that’s sending waves across the prop trading community. After successfully passing both Phase One and Phase Two challenges with Funded Next and receiving a payout, the trader—known online as Pe—was shocked to find his account banned shortly thereafter.
In a newly released video, Pe breaks down the critical rule violation that led to the ban, aiming to warn others in the prop firm ecosystem about a commonly misunderstood but strictly enforced regulation: IP location mismatch and account ownership misuse.
“Every account that gets banned has a rule attached to it,” Pe explains. “Even though I passed all stages and got paid, my account was ultimately terminated because of a violation that’s more common than most people think.”
The Rule That Led to the Ban
According to Pe, the issue stemmed from third-party account creation and location mismatches—a direct breach of Funded Next’s trader policy. In this case, the client who approached Pe for a collaboration opened the trading account in a different country, under their own name, but later handed over login credentials to Pe, who then traded from another location.
This IP mismatch and change in user access was flagged by the firm’s compliance systems post-payout. Funded Next cited the breach and proceeded to terminate the account, even though the trader had not violated any trading rules or risk parameters.
“It doesn’t matter whether your intention was pure,” Pe stated. “If the account is opened by one person in one location and traded by another in a different country, that’s a breach. The rules are clear.”
Pe praised Funded Next for their integrity, however, noting that despite the breach, the firm honored the payout.
“That’s why I rate Funded Next highly. They could have denied the payout based on the rule breach, but they fulfilled their brand promise.”
The Bigger Lesson for Prop Firm Traders
This case serves as a critical reminder to all traders—especially those collaborating or outsourcing—that each prop firm operates with strict compliance standards tied to transparency, identity, and location-based verification. While many traders focus solely on risk management and profit targets, failing to follow administrative or technical rules can result in account suspension or bans, regardless of performance.
Pe drew parallels to football referees using VAR:
“You might think everything’s going fine, just like scoring a goal, but once the system checks the rulebook, everything changes.”
A New Vision for Traders in 2025
Pe isn’t just warning others—he’s turning this lesson into a mission. With four funded account certificates to his name (one of which he achieved in just six trading days), he’s currently developing a community-driven system to help traders pass challenges ethically and efficiently.
About Pe Trading:
Pe is a verified prop trader with multiple successful funded challenges under his belt. Through transparent content and community-driven education, Pe is focused on empowering traders to navigate the world of prop firms with both skill and integrity.