Beware! This is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
When we saw XcoinBroker website we were left with the impression, the broker is trying to present itself as a crypto exchange. And although XcoinBroker are focused mainly on crypto assets, what they are offering are just crypto CFDs with a number of coins like Bitcoin, Bitcoin Cash, Bitcoin Gold, Ethereum, Litecoin, Dash, Stellar, lumens, Ripple, Monero, Qtum, NEO, EOS, Ethereum Classic, Tron and NEM.
Actually XcoinBroker is offering CFDs on other assets as well – like indices, commodities and stocks, but all of them are paired against Bitcoins or USD Tether. Besides XcoinBroker does not offer any conventional forex pairs and that we view as a minus.
Otherwise the broker offers six account types with a maximum leverage between 1:20 and 1:50. The minimum deposit for the Mini Account is 0,5 BTC, which is over 3000 USD. Unfortunately, the broker does not disclose the minimum deposit amount with its starting Micro Account.
The BTC/USDT spread, as tested on their web based platform was 50 USD, which is in the upper range of what is considered acceptable.
XcoinBroker regulation & safety of funds
XcoinBroker is said to be operated by Zed Consult Ltd, a company based in Bulgaria. The website, however, does not specify who actually owns it. It could be a Russian company – OOO «САМДАР», which is also mentioned in XcoinBroker presentation. In any case, we checked the registers of the Bulgarian Financial Supervision Commission (FSC) and we were not able to find neither XcoinBroker nor Zed Consult Ltd there.
So basically XcoinBroker and Zed Consult Ltd operations in Bulgaria and the European Union as a whole appear to be illegal. All companies providing financial services in Bulgaria should be registered either by FSC or another European financial watchdog.
Be aware that proper regulation is the single most important factor for the safety of any investment on the financial markets. Brokers, regulated by respected financial institutions like the Financial Conduct Authority (FCA) in the UK, the Australian Securities and Investments Commission (ASIC) or the Cyprus Securities and Exchange Commission (CySEC) have to follow strict financial and ethical rules, among which to keep all client’s funds in a segregated, protected form creditors account, to maintain a certain minimum operational capital and in some cases even to insure traders money.
Traders with CySEC brokers, for instance, can receive back up to 20 000 EUR of their investment in the event their broker goes insolvent. Similarly, traders with FCA brokers are entitled to a compensation of up to 50 000 GBP.
XcoinBroker deposit/withdrawal methods and fees
You can deposit funds at XcoinBroker using major credit or debit cards like MasterCard and VISA, bank wire and e-wallets like QIWI Wallet, WebMoney and Yandex. Besides XcoinBroker accepts Bitcoins as well.
How does the scam work?
The usual case is you will happen to watch a video on a robo- scam website like Bitcoin Revolution or Bitcoin Method. The video will be rather convincing and will tell you the story of how you can win big by investing with an innovative trading app, probably on the crypto market. All you have to do is fill a simple registration form and leave your phone and e-mail.
Next you will be transferred to the web page of a unregulated, offshore broker, where you will be invited to deposit just 250 USD and start making money right away. Besides, your first trades will go perfectly and soon the money in your account will double. This, however, will happen not because you have necessarily made great trading decisions, but simply because your trading account will be manipulated. The idea is that you get hooked.
And then you will receive a call form a “senior account manager”, who will be impressed by your performance, but who will also insist, that if you want to make some real money, you will simply have to invest more – let say 10 000 USD. Chances are you will deposit those money as well.
And at first everything will seem fine, you will continue to trade and profit, your “account manager” will try to convince you to deposit even more funds and you may even be allowed to make a small withdraw.
All that will change when you decide to withdraw a more substantial sum. It will turn out you simply can not. They will quote a clause in the Terms and Conditions, you have agreed with, linking the right to withdraw with some minimum trading volume or with some conditions about the welcoming bonus, you have carelessly accepted. The bottom line is you will not be able to withdraw anything.
Be aware that at some point scammers will ask you to send them a copy of your ID and a proof of address (your latest electricity bill for example). They will cite the anti-money laundering regulations, but they actually need those documents, because if you give them your personal information voluntarily, they will have a much stronger case, when you file for a charge back with your credit card provider.
Also some scammer may even try to trick you to install Team Viewer, so that they can get full access to your PC. If you allow this, they will surely get to your credit card number and other banking details and will try to steal money form your banking account directly.
What to do if scammed?
First, immediately contact your credit card provider and file for a chargeback. Unfortunately you will be able to do this only within 6 months form your initial deposit.
In case you have given away your credit card number or banking details, or you have agreed to install Team Viewer, cancel your credit card immediately, delete Team Viewer and change the password for your online banking service.
Finally, if you have lost some money to scammers, do not loose even more by seeking the service of the so called “recovery agencies”. Such companies are on a hunt for desperate traders – they will just collect an upfront payment and will leave you even deeper in to the red.