Referral programmes are a common way brokers and trading platforms attract new clients. These programmes promise affiliates or existing users a percentage of revenue or fixed bonuses for bringing in new traders. But increasingly, fraudulent or unregulated brokers are engaging in a manipulative scheme known as the Referral Commission Withheld scam—where promised payouts are delayed, denied, or cancelled entirely with vague excuses.

This article explores how the scam works, warning signs to watch for, and how to protect yourself when working as a broker affiliate or referral partner.

What Is the Referral Commission Withheld Scam?

The Referral Commission Withheld scam occurs when a broker refuses to pay promised affiliate or referral commissions, either by retroactively changing the terms, misrepresenting eligibility, or falsely accusing the referrer of fraud. These scams are most common with:

• Unregulated brokers
• Offshore platforms
• Pyramid-style marketing schemes disguised as trading networks

In many cases, referrers do the hard work of promoting the broker and onboarding new clients—only to see their earnings denied at the payout stage.

How the Scam Works

Step 1: Promising a Commission Structure

The broker advertises attractive referral payouts such as:

• A fixed amount per new client (e.g. $100 per signup)
• A percentage of the referred client’s trading volume
• Recurring lifetime commissions from referred accounts

These programmes are promoted via emails, dashboards, or social media posts and may even include banners and affiliate tracking tools.

Step 2: You Refer Clients

You promote the broker through social media, blogs, trading groups, or word-of-mouth. New users sign up through your link, and you begin to see activity in your dashboard or affiliate portal.

Step 3: Earnings Appear—Then Disappear

You see pending commissions for new clients—but when you try to withdraw them, the broker:

• Delays the payment repeatedly
• “Audits” your account and suspends payouts
• Accuses you of fake referrals or violating unclear rules

Step 4: Retroactive Policy Changes

Sometimes the broker suddenly changes the rules, claiming:

• “Clients must trade a minimum volume before commissions apply”
• “Referrals from your region are not eligible”
• “Bonuses are only paid once deposits are verified manually”

These changes are often made after your referrals have already signed up, leaving you without compensation for your efforts.

Step 5: Ghosting or Blacklisting

Eventually, the broker’s affiliate support stops responding. You may be locked out of your dashboard or blacklisted from the programme.

Red Flags to Watch For

Unregulated or Offshore Brokers

Most referral scams occur with brokers based in loosely regulated jurisdictions like St. Vincent and the Grenadines, Vanuatu, or Seychelles.

No Transparent Terms and Conditions

If the referral programme lacks detailed terms—including payment frequency, eligibility, and violation clauses—assume it’s untrustworthy.

Changes in Rules Without Notice

If you notice that referral terms change without formal announcements, the broker may be planning to deny payouts.

Manual or Delayed Payments

Legitimate brokers process affiliate payments via automated systems on a regular schedule. If you’re asked to email someone to get paid, it’s a red flag.

Lack of Referrer Dashboard Detail

If your dashboard doesn’t clearly show client status, earnings, and conversion metrics, the broker may be hiding or fabricating the data.

How to Protect Yourself

Work Only with Regulated Brokers

Choose brokers licensed by reputable authorities like the FCA, ASIC, or CySEC. Regulated platforms are less likely to manipulate affiliate payments.

Get Written Confirmation of Referral Terms

If possible, get an email or document confirming the exact referral structure, payout conditions, and timeframes.

Track Your Referrals Independently

Use your own analytics tools to track the traffic and signups you generate. This can help if you need to dispute missing earnings.

Start with Small Campaigns

Before driving serious traffic or making heavy marketing investments, test the broker with a few referrals to see if they honour their payment terms.

Document All Communication

Keep emails, screenshots, and payment receipts in case the broker denies your claims or changes their policies.

Report to Affiliate Networks or Review Sites

If a broker withholds commissions unfairly, report them to affiliate watchdog platforms and warn other marketers.

Conclusion

The Referral Commission Withheld scam is a calculated tactic that exploits the efforts of honest affiliates and referrers. By offering attractive commissions and then backtracking through excuses or silent denials, scam brokers protect their profits while damaging trust and partnerships. Awareness, due diligence, and transparency are essential to avoid wasting time and resources.

To learn how to build sustainable trading businesses, choose trustworthy partners, and avoid affiliate fraud, enrol in expert-led Trading Courses that empower you with real-world broker evaluation strategies and professional referral insights.