In the competitive world of online trading, recognition schemes like “Trader of the Week” can appear to be a fun, motivational feature offered by brokers. But not all of these promotions are genuine. The Trader of the Week Scam is a deceptive strategy used by fraudulent brokers to lure in new clients or manipulate existing ones with fabricated success stories, falsified account results, and rigged competitions designed to exploit trust and encourage further deposits.

This article exposes how this scam operates, warning signs to look for, and how traders can avoid being misled by fake achievements.

What Is the Trader of the Week Scam?

The Trader of the Week Scam involves a broker or trading platform announcing a “top-performing trader” each week and showcasing:

• Their name or alias
• Their “trading stats” and supposed ROI
• A fabricated testimonial
• Screenshots of winning trades or high account balances

The intention is to:

• Create FOMO (fear of missing out) among other traders
• Convince clients that success is easily attainable
• Encourage deposits to “join the next challenge”
• Promote fake accounts to serve as role models in manipulated trading contests

In many cases, the “winning” trader is not real—or is a broker-owned account used to simulate perfect results.

How the Scam Works

Step 1: Fake Achievement Is Announced

Each week, the broker publishes a social media post, email, or dashboard banner that reads:

“Congratulations to Alex R., our Trader of the Week with a 720% ROI!”

They may include:

• A staged photo
• Trading stats (e.g., win ratio, drawdown, deposit size)
• Quotes from the winner praising the broker

Step 2: Other Traders Are Encouraged to Compete

The broker promotes:

• A leaderboard system
• New contests with “cash prizes”
• Bonus offers for deposits made before the next round

This creates urgency and competition, pushing clients to:

• Overtrade
• Deposit more funds
• Take excessive risk to climb the rankings

Step 3: Results Are Falsified or Unverifiable

The top traders either:

• Don’t exist
• Are internal accounts controlled by the broker
• Had access to different leverage or spreads than regular users

The competition is not audited, and results are never published with independent verification.

Step 4: Prizes Are Not Paid or Come With Strings Attached

If a real trader does manage to top the charts:

• The prize is delayed
• Conditions are added after the fact (“minimum trade volume must be met”)
• The reward is issued as bonus credit—not withdrawable funds

Eventually, the trader’s account may even be frozen or drained by manipulated market conditions.

Red Flags to Watch For

No Independent Verification of Results

Legitimate competitions publish leaderboards and stats on third-party platforms like Myfxbook. If everything is internal, it’s unverified.

Winning Traders Are Anonymous or Generic

If the “Trader of the Week” is always named as “Alex R.” or “Trader #2041” with no verifiable identity, it’s likely fabricated.

No Terms and Conditions Available

Real contests always include detailed rules, eligibility criteria, and payout structures. If there are none, it’s likely a trap.

Broker Refuses to Answer Questions About the Contest

If support can’t explain the prize distribution or who audits the results, it’s a setup.

Winners Always Promote the Broker

If the winner conveniently posts glowing praise in every competition announcement, it’s probably scripted marketing.

How to Protect Yourself

Ignore Unverified Competitions

Unless the contest is externally audited or hosted on a trusted platform, avoid getting emotionally invested or overtrading to win.

Never Deposit Just to “Join the Leaderboard”

If the competition requires a fresh deposit without guaranteeing fairness or transparency, it’s a red flag.

Demand Proof of Past Winners

Ask for verified trade records or proof that previous winners received their rewards. If they can’t deliver, walk away.

Use Your Own Metrics for Success

You don’t need a badge to validate your progress. Focus on building consistent results—not outperforming manipulated charts.

Stick to Regulated Brokers

Fraudulent contests are almost always run by unregulated or offshore entities. Regulated brokers are held accountable for client promotions.

Conclusion

The Trader of the Week Scam is a psychological marketing trap disguised as recognition. With fake stats and manipulated outcomes, it exploits ambition and competition to draw traders deeper into high-risk behaviour or additional deposits—while delivering little to nothing in return.

To sharpen your ability to identify fake contests, evaluate real trading performance, and compete only when it’s safe and fair, enrol in our expert-led Trading Courses that teach broker transparency, risk-adjusted strategies, and how to succeed without falling for hype-driven traps.