In the world of online trading, transparency around costs is essential. Reputable brokers clearly outline spreads, commissions, and platform fees. However, a growing number of fraudulent platforms have introduced a deceptive tactic known as the Monthly Maintenance Fee Scam—an illegitimate charge disguised as an account upkeep fee that steadily drains traders’ balances without their informed consent.

This article explains how the scam works, common warning signs, and how to protect your funds from unauthorised or hidden deductions dressed up as routine maintenance.

What Is the Monthly Maintenance Fee Scam?

The Monthly Maintenance Fee Scam is a fraudulent scheme in which a broker or trading platform charges regular, hidden fees—often ranging from £30 to £150 per month—under the pretext of:

• Account maintenance
• Platform access
• “Security auditing”
• Trade data storage

These charges are rarely disclosed upfront and usually only appear after a trader deposits funds. They may also be hidden deep within the terms and conditions or introduced without prior notice.

The goal is to drain user balances gradually, especially if accounts are inactive or not actively monitored, while avoiding the scrutiny that comes with outright theft or trade manipulation.

How the Scam Works

Step 1: Trader Signs Up and Funds Account

The trader opens an account with what appears to be a professional broker or platform. Marketing material rarely mentions any recurring fees. In many cases, the first month appears fee-free.

Step 2: Monthly Deductions Begin

Soon after funding, the trader notices unexplained deductions marked as:

• “Account Service Charge”
• “Monthly Platform Access Fee”
• “Inactive User Maintenance”
• “Data Hosting or Storage Fee”

The deductions occur regardless of trading activity.

Step 3: Trader Questions the Charges

Upon querying support, the broker responds vaguely, referring to internal policies, system upkeep, or regulatory compliance. When asked to show where the fee was disclosed, they cite obscure parts of the client agreement—often added or changed after signup.

Step 4: Escalation or Withdrawal Blocking

If the trader demands a refund or attempts to withdraw their funds:

• The broker may stall or block the withdrawal
• Additional “processing fees” may be added
• The trader might be told the account must remain active for a period to avoid further charges

Eventually, balances may be fully depleted if the trader is inactive or doesn’t act quickly.

Red Flags to Watch For

No Upfront Disclosure of Ongoing Fees

If the broker doesn’t clearly explain all monthly or maintenance-related fees before you open the account, it’s a major red flag.

Fees Appear Only After Deposit

Scammers often delay fee activation until after the account is funded to avoid scaring off new users.

Vague or Changing Terms of Service

If the platform’s fee terms are unclear, missing, or regularly updated without email notifications, be cautious.

Flat Monthly Fees Regardless of Activity

Legitimate brokers typically do not charge ongoing flat fees unless the account is inactive for extended periods—and even then, it’s clearly stated.

Fee Is Charged Without Invoice or Breakdown

If no invoice, explanation, or breakdown accompanies the charge, it’s likely illegitimate.

How to Protect Yourself

Read the Fine Print Before Depositing

Review the broker’s fee schedule and terms of service. Look for:

• Account maintenance or inactivity clauses
• Frequency of platform charges
• Minimum deposit retention terms

If these are missing or ambiguous, avoid the broker.

Choose Regulated Brokers

Reputable brokers regulated by authorities like the FCA, ASIC, or CySEC are required to provide full transparency on fees. They are also held accountable for deceptive charges.

Monitor Your Account Daily

Check for any small, regular deductions you don’t recognise. Scams often begin with modest fees that grow over time.

Demand Written Confirmation

If charged a fee, request the exact source in writing. If the broker can’t point to a signed agreement or clear disclosure, refuse the charge.

Report Suspicious Activity

Report any hidden or unauthorised fees to the appropriate regulator or financial watchdog in your region. Public awareness can prevent others from falling into the same trap.

Conclusion

The Monthly Maintenance Fee Scam is a quiet and persistent threat, exploiting fine print and user neglect to extract money from traders over time. By disguising illegitimate charges as routine platform fees, scam brokers profit while eroding trust and trapping victims in a cycle of account decay.

To protect yourself from such hidden traps and understand how to vet brokers properly, enrol in expert-led Trading Courses that teach transparency checks, broker due diligence, and real-world financial defence tactics for independent traders.