The four scam archetypes
Archetype 1 — bait-and-switch challenge: marketing copy says no consistency rule; T&Cs include one; trader violates a clause they never knew about; refund denied. Archetype 2 — soft-default payout: account passes, first payout request triggers a re-review, every email gets slower until the trader gives up. Archetype 3 — silent rule edit: firm changes the rules mid-evaluation; old traders subject to new clauses retroactively; no version history. Archetype 4 — disappearance: firm runs for 6-12 months collecting challenge fees, then the dashboard goes 404 and the Discord goes dark.
Red flag 1 — no public T&Cs
If you cannot find the full rule schema without registering or paying, the firm is hiding something. Legitimate firms publish all rules at a public URL. If the rules live in the dashboard only, walk away.
Red flag 2 — no payout proof feed
Established firms publish a payout feed — names redacted, dollar amounts and dates public. If a firm older than 18 months does not have one, ask why. If the answer is anything other than 'we are switching providers,' walk away.
Red flag 3 — domain age under 6 months + aggressive paid ads
Brand-new domains spending heavily on paid acquisition is the textbook arbitrage scam pattern: spin up firm, run 4 months of paid ads, take challenge fees, default on payouts after the first cohort passes. Use whois.com. If the domain is brand new and the ad spend is loud, wait six months.
Red flag 4 — consistency rule hidden in a sub-clause
Search the T&Cs for 'consistency,' '5/3 rule,' 'distribution,' '% of total profit.' If you find a percentage cap on a single day's contribution to total profit, that is a consistency rule. If marketing copy claims no consistency but a sub-clause defines one, you have already found archetype 1.
Red flag 5 — drawdown defined in marketing, redefined in dashboard
Static drawdown and trailing drawdown are completely different products. A 10% trailing DD that locks at profit target is generous. A 10% trailing DD that follows equity high is brutal. Confirm in the T&Cs which model the firm uses BEFORE buying.
Red flag 6 — payout time worse than industry average
Industry standard is 1-3 days for the first payout, same-day for repeat. If a firm publishes 14+ days, either they have liquidity problems or they are buying time to deny.
Red flag 7 — Trustpilot reviews are 5★ or 1★ only, no middle
Healthy reviews are normally distributed. A bimodal distribution (all 5★ or all 1★) means either review manipulation or systematic failure modes. Both are bad.
Frequently asked
How do I check if a firm is legit before buying?+
Apply the seven red flags above. If any two trigger, walk away. If only one triggers, ask the firm to explain in writing and screenshot the reply.
What do I do if a firm refused my payout?+
First, gather your trade history, the version of the T&Cs that was live when you bought, and any dashboard screenshots showing rule compliance. Chargeback the original challenge fee with your card issuer if within the window. Post a verified review (with proof) on every relevant forum. Document everything.
Are instant-funding firms scams?+
Most are not, but instant funding is the scam-archetype-4 product of choice because the upfront fee is higher. Apply the same red-flag check — if the firm publishes a real payout feed, the instant tier is probably real.