The bonus trap is a cunning and manipulative tactic used by shady brokers to lock traders into unfair trading conditions through misleading bonus offers. On the surface, these bonuses appear to boost your trading capital, but in reality, they are designed to restrict withdrawals, impose hidden conditions, and trap your real funds behind arbitrary rules.

In this article, we’ll expose how the bonus trap works, why it’s so dangerous, and how to avoid falling for one of the oldest tricks in the trading scam playbook.

What Is a Bonus Trap?

A bonus trap occurs when a broker offers you a trading bonus—usually a deposit match, sign-up bonus, or loyalty reward—that comes with hidden terms that restrict your ability to withdraw your funds or profits. These brokers then use these restrictions to delay or deny withdrawals, ultimately draining your capital through manipulation or inactivity.

While some regulated brokers offer transparent, optional promotions, unregulated brokers often use bonuses as bait to trap you.

How the Bonus Trap Scam Works

1. Attractive Bonus Offer

You’re offered a bonus such as:

• “100% deposit bonus”
• “£30 free trading credit”
• “10% loyalty bonus for every top-up”

It seems like free money—but no mention is made of the terms and conditions upfront.

2. Activation Without Consent

In some cases, the bonus is added automatically—even if you didn’t request it. This is done to trigger restrictions on your account.

3. Withdrawal Restrictions

When you try to withdraw, the broker claims:

• You haven’t met the required trading volume
• The bonus must be fully used or forfeited first
• Your profits are linked to the bonus and cannot be withdrawn until a threshold is met
• You must repay the bonus or lose all profits before withdrawing your real funds

4. Disappearing Profits

If you reject or attempt to remove the bonus, your entire account might be reset or labelled ineligible for withdrawals.

Why Brokers Use Bonus Traps

• To prevent early withdrawals
• To delay access to funds until the client gives up or loses
• To trap traders in high-risk trading to meet bonus targets
• To appear more attractive than legitimate brokers
• To use bonuses as legal cover for rejecting withdrawal requests

Common Bonus Trap Terms

• Turnover requirements: Often 20x to 50x the bonus amount
• No withdrawals until conditions met
• Forfeiture of bonus AND profits if any withdrawal is requested early
• Bonus tied to profits: Any profit is considered part of the bonus and can be revoked
• Hidden expiry terms: If you don’t meet conditions within a time frame, the bonus (and possibly profits) are removed

Red Flags of a Bonus Trap

• Bonus is added automatically without your consent
• Terms are vague, buried in fine print, or not disclosed upfront
• Broker refuses to process withdrawals due to bonus-related excuses
• Account manager insists the bonus is “free” but avoids questions about conditions
• Unregulated broker with an offshore address offering aggressive promotions
• Profits become “locked” once a bonus is activated

How to Protect Yourself from Bonus Traps

1. Use Regulated Brokers

Trade only with brokers licensed by authorities like the FCA, ASIC, or CySEC. These regulators often ban or restrict bonus schemes to protect traders.

2. Always Read the Bonus Terms

Before accepting any promotion, request the full terms and calculate the real cost of meeting the conditions.

3. Decline Automatic Bonuses

If a broker applies bonuses without your approval, request removal in writing. If they refuse, stop trading and attempt to withdraw immediately.

4. Test Withdrawals Early

Before growing your account, test whether you can withdraw part of your capital. Bonus blocks at this stage reveal the trap.

5. Document All Communications

Save emails, chats, and account statements—especially if a bonus becomes the reason for withdrawal denial.

Get Educated, Not Exploited

Understanding the mechanics behind trading bonuses, withdrawal traps, and broker tactics is essential. Traders MBA offers structured trading courses that teach you how to identify fair trading conditions, avoid bonus traps, and select reputable brokers from the start.

Conclusion

The bonus trap is a bait-and-switch scam that turns generous offers into costly restrictions. It preys on trader optimism, then holds funds hostage through technicalities and fine print. If your capital is only yours until a bonus is applied, then it was never yours to begin with. Trust transparency, not gimmicks—and never trade with brokers who use traps instead of trust.