While public holidays are a normal part of the global financial calendar, some unethical brokers exploit them to manipulate access, delay withdrawals, and justify unexplained trading issues. The Misuse of Trading Holidays scam involves falsely citing market holidays or exaggerated downtime to prevent traders from closing positions, withdrawing funds, or identifying price discrepancies—all while pretending to operate within regulatory norms.

This article exposes how this scam unfolds, the tell-tale signs of abuse, and how traders can protect themselves when brokers weaponise the calendar against them.

What Is the Misuse of Trading Holidays Scam?

In this scam, a broker uses real or invented public holidays to:

• Block withdrawals
• Disable trading platforms
• Justify price freezes or quote discrepancies
• Claim “liquidity unavailability” to avoid executing trades

These disruptions are often not aligned with actual market closures, and are designed to trap traders in losing positions or delay fund requests under the appearance of legitimate operational downtime.

How the Scam Works

Step 1: Broker Announces Upcoming Holiday Downtime

The broker sends out a notice:

“Due to a regional public holiday, all trading will be disabled from 12pm GMT Thursday to Monday 8am GMT.”

While this may sound plausible, no major exchanges are closed during the stated period—or the holiday doesn’t even apply to the broker’s jurisdiction.

Step 2: Platform Access Is Blocked or Limited

During this period, traders experience:

• Frozen charts
• Delayed executions
• Disabled logins
• Unexplained position closures

Any requests for support are met with:

“Our compliance team is offline for the holiday period.”
“Please wait until the market reopens.”

Step 3: Price Manipulation or Withdrawal Delay Occurs

With reduced visibility and no ability to act:

• Open positions move aggressively against the trader
• Orders can’t be adjusted or closed
• Withdrawals submitted just before the holiday are marked “pending” for days

If challenged, the broker insists this is due to “bank holidays,” “liquidity provider downtime,” or “technical restrictions.”

Step 4: Market Resumes—But Damage Is Done

By the time normal trading resumes:

• The trader’s account is in drawdown or wiped out
• Withdrawal requests are still delayed
• The broker refuses compensation, citing holiday policy

The use of holiday excuses becomes a built-in risk mitigation tool—for the broker, not the trader.

Red Flags to Watch For

Holiday Closures That Don’t Match Global Markets

Always cross-reference broker notices with official exchange calendars. If your broker is closed but CME, NYSE, or LSE are operating, it’s a red flag.

Unusually Long Holiday Periods

Legit closures typically last a day. If your broker claims 3–5 days of downtime, especially around weekends, it’s likely a stall tactic.

Platform Disabled But Website Remains Active

If marketing, sign-up pages, and deposit functionality remain available during “holiday maintenance,” the closure is selective and suspicious.

Support Goes Silent Without Just Cause

Even during holidays, regulated brokers maintain support staff or auto-responses. Total silence is a tactic to avoid accountability.

Price Feeds Freeze During Active Hours

If charts freeze or skip candles on days when global markets are trading normally, the broker is manipulating data delivery.

How to Protect Yourself

Cross-Check Market Schedules

Use official exchange calendars (NYSE, LSE, CME, etc.) to verify if a holiday truly affects trading. Many FX and CFD markets remain open even during local bank holidays.

Avoid Holding Large Positions Around Suspicious “Closures”

If your broker frequently announces long or exaggerated holiday closures, close out positions or reduce exposure beforehand.

Track Withdrawal Timelines Carefully

If your withdrawal is delayed due to “bank holidays,” verify if that excuse holds true. If not, escalate quickly.

Use Regulated Brokers Only

FCA-, ASIC-, and CySEC-regulated brokers are required to honour global market hours and maintain transparency about operational downtimes.

Document Every Closure and Resulting Impact

Take screenshots, save notices, and track what actions you could not take. This evidence is critical if you lodge a complaint.

Conclusion

The Misuse of Trading Holidays scam turns routine calendar events into a weapon of control and deception, allowing brokers to sidestep accountability while locking traders into unfavourable positions. By exploiting perceived market closures, these brokers trap funds, limit platform access, and hide manipulation behind a veil of legitimacy.

To build the skills needed to verify broker claims, manage risk through holiday periods, and protect your account from deceptive downtime tactics, enrol in our advanced Trading Courses designed to help retail traders navigate broker traps, market schedules, and timing risks with confidence and clarity.