Leaving aside whether it's a scam or not, although it does seem pretty questionable, why does nobody else do this sort of thing? It seems like a win-win situation to me ...
The company just provide simulator access to however many people are willing to pay them for it, they let everyone do their own risk management (trading whatever and whenever they like) and then look at the results every month or 3 months or whatever. They then offer some kind of deal to the top performers (as defined by their metrics e.g. not necessarily the individual who has made the most money)and start taking a percentage of their profits while continuing to take cash from all the wannabe traders.
Meanwhile, the wannabe trader gets their chance of a lifetime. All they have to do is meet the firms predetermined metrics and they will be offered a trading deal. Success or failure is entirely down to them. Of course, most would fail ... but they would have the opportunity (and this forum shows how many people want that opportunity). I'd imagine most aspiring traders would be willing to stump up the cost for a chance to prove themselves.
What have I missed here?