The incentivised “Trader of the Month” scam is a deceptive promotional tactic used by scam brokers or fake trading platforms to manipulate traders into overtrading, depositing more, or risking too much capital by dangling the promise of a high-profile reward—such as cash prizes, gadgets, or account upgrades. On the surface, it appears to be a fun and motivational contest, but behind the scenes, it’s engineered to extract more volume, trigger losses, and avoid payout under vague or rigged conditions.

In this article, we uncover how this fake contest works, the signs of manipulation, and how to avoid being baited into trading for rewards that never arrive.

What Is the “Trader of the Month” Scam?

This scam centres around a broker or platform offering a competition like:

• “Top trader wins $5,000 this month!”
• “Join our Trader of the Month leaderboard and claim exclusive rewards”
• “Top 10 most profitable traders get bonus funding or luxury prizes”

Traders are pushed to:

• Increase trading volume
• Take higher risks
• Make additional deposits
  All for a chance at a prize that’s either fake, impossible to win, or never paid out.

How the Scam Works

1. The Contest Is Promoted Aggressively

Via email, social media, or in-app banners, you see:

• “Compete with thousands of traders worldwide!”
• “Boost your trades and win BIG this month!”
• “Last month’s winner made $40K profit from a $1K deposit!”

The broker showcases testimonials or photos of winners—often fabricated or stolen from unrelated traders.

2. You’re Encouraged to Trade More

Once registered, you’re encouraged to:

• Increase leverage
• Trade frequently to climb the leaderboard
• Hold positions through high-volatility events

Support may suggest:

• “You’re in the top 20, just a few more trades to go!”
• “Increase volume now—competition ends in 2 days!”
  This nudges you to overtrade and overexpose your account.

3. Leaderboard Rankings Are Manipulated

Even if you perform well, you notice:

• Leaderboard positions change without explanation
• Top spots are occupied by unidentifiable usernames
• Results are based on “net PnL”, “risk-adjusted returns”, or “volume”, but the criteria are vague

In truth, the winners are often internal accounts, bots, or clients handpicked for promotional reasons.

4. The Prize Is Denied, Delayed, or Disappears

If you try to claim your prize, the broker may respond:

• “You didn’t meet all contest requirements”
• “You were disqualified for violating rules”
• “Rewards are processed in 90 days”
  —after which support goes silent or the broker shuts down

Some traders receive minor prizes but are upsold into deposit match traps or VIP tiers requiring further risk.

Why Scam Brokers Use This Tactic

• To boost trading volume and commissions
• To encourage risky behaviour that leads to client losses
• To mask poor execution or fraud with “gamification”
• To avoid paying actual withdrawal funds by diverting attention
• To foster community trust using fake winners and staged testimonials

Red Flags of a Scam Contest

• Vague or hidden prize terms and eligibility criteria
• No transparency on ranking calculation
• No past winners listed with verifiable identities
• Prize requires further deposits or “activation”
• Winners must pay withdrawal fees to receive the reward
• All contest promotions occur on broker-controlled channels only

Real Consequences for Victims

• Large financial losses from overtrading
• Increased emotional risk-taking based on false hope
• Chasing artificial leaderboards at the expense of real strategy
• Wasted time and effort with no payout
• No legal recourse if the broker is unregulated or offshore

How to Protect Yourself

1. Avoid Gamified Trading Competitions With Cash Prizes

Unless run by regulated brokers or on public trading communities like Myfxbook or cTrader, these contests are likely manipulated.

2. Request Full Contest Rules in Writing

Before joining, ask for:

• How rankings are calculated
• Payout terms
• Past winner verification
• What disqualifies a participant

No clear answers = don’t participate.

3. Use Brokers With Transparent Track Records

Regulated brokers under FCA, ASIC, or CySEC:

• Disclose promotional mechanics
• Honour rewards without hidden conditions
• Don’t push clients into contest-based overtrading

4. Never Trade More Than Your Strategy Allows

If a contest forces you to:

• Increase lot size
• Trade news events recklessly
• Hold trades against your system
  —it’s a trap. Real trading isn’t a game.

Choose Strategy Over Spectacle

Real traders win by following tested systems—not contests. Traders MBA offers trading courses that teach proper risk management, trading psychology, and how to grow steadily—without ever needing to gamble for gimmicks.

Conclusion

The incentivised “Trader of the Month” scam is a game rigged against you—designed not to reward excellence, but to extract engagement, risk, and ultimately, money. If the prize is unclear, the contest is unfair. Because in trading, the only leaderboard that matters is the one written in your results—not someone else’s script.