Coin Financial review – 5 things you should know about Coin-financial.com

Beware! Coin Financial is an offshore broker! Your investment may be at risk.

RECOMMENDED FOREX BROKERS

FXTM

Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.

 

Coin Financial is a binary options brokerage supposedly based in the UК. The brokerage provides a web-based trading platform available for clients and a maximum payout of 81% which is quite  low and below the industry average, the range of trading products is unimpressive as well. Furthermore, there is conflicting corporate information.

Coin Financial regulation & safety of funds

Coin Financial is supposedly owned and operated by an UK-based company bearing the numer 11486763. From the website of the brokerage we gather that the registered address of the company is supposedly at Flat 18 Dolphin House, Smugglers Way, London, SW18 1DE, United Kingdom. We remind readers that the British authorities do not allow binary options trading to take place in the country which means that Coin Financial is most certainly operating illegally in the UK. However, the company also claims to be governed by the laws of the Isle of Man. Binary options brokerages are required to be licensed by th Gambling Supervision Commission however, after doing a quick research – we can confirm that Coin Financial is not authorized by the authorities of the isle of Man as well. This should immediately raise red flags both in seasoned traders, as well as newbie. Presenting misleading information is among the favourite tropes of scammers and shady brokerages. The Isle of Man is a self-governing British Crown dependency and the GSC does regulate binary options trading, however, Coin Financial is not licensed by it. We have to stress the fact that companies that present such purposefully misleading information should be considered by traders as “no-go zones”. Putting that aside – we also weren’t able to register for a demo account which is another big disadvantage since a test-drive is crucial in Forex trading both as way of getting acquainted with the trading conditions of the broker, and for creating trust between the firm and client. However, we do read on the website the following: We read that the maximum payout for all the accounts is at 81 percent which is quite low and not tempting in any way. All in all, traders are warned no to risk it with Coin Financial. We urge traders to avoid risk by trading only with brokerages that have been licensed by a top-notch regulatory body. Traders needn’t have to worry themselves with such risk if they choose to trade with a brokerage regulated and authorized by a prestigious regulatory agency. Such agencies are the Financial Conduct Authority in the UK or CySEC in Cyprus which have been leading names in Forex trading for some time now. Their regulatory framework is composed of a number of strict rules which prevent clients from falling victims to fraud. Such rules include the segregation of accounts which assures that commingling with the client’s money is not possible. Furthermore, a license by such a regulatory body entails participation in a financial mechanism by which clients may be compensated if they suffer losses due to fraud or bankruptcy. The FCA compensates traders up to 85 000 pounds where as CySEC guarantees up to 20 000 euro per person.

Coin Financial deposit/withdrawal methods and fees

We could not discern the available payment methods that the brokerage supports from the website. Usually brokers provide clients at least with the standard Visa and MasterCard, as well as bank wire. No legitimate brokerage should have such a withdrawal provision which warns of fees but does not specify the amount nor the circumstance in which they may arise, and this only further speaks about the brokerage’s ill-minded intentions towards potential clients. There is no other mention of withdrawal fees on the website, nor in the terms and conditions of the brokerage either, but that is still no guarantee, because unregulated brokerages – especially those who present misleading information – often charge unexpected fees once the client has already invested funds. Precisely due to such instances we remind readers of all the ways a trader may test the brokerage’s intentions. Firstly, traders are advised to always put up only the required minimum deposit, instead of risking a bigger amount with no certainty. Afterwards, they may also try to withdraw a small amount in order to check for any unexpected fees or delays. Such fees and delays are usually the signs of a scammer.

How does the scam work?

Unfortunately, much of the forex trading world is overshadowed by the huge numbers of scammers. All a trader may do is be well-informed and, in case he is the subject of a fraud – stay calm and not panic! The chance for panic is greatly reduced if such a situation does not take you by surprise. Here are the available options for scammed traders: In most cases through clicking a tempting ad with promises for fast money, you will be redirected to a website such as The News Spy or Bitcoin Evolution where registration will require you to give your address, email and phone number. Your personal information will be immediately shared with brokers in call centers who are just waiting for juicy leads. After a few minutes hearing how the millions are sure to flow your way, you decide to deposit some $200-250. And just like that – the scammers take a 25 per cent commission from this initial deposit. After leading you by the nose for a few hundred bucks, senior scammers will take you up and begin pushing you to further invest. You may even be swayed and further give it a shot.  At this point, regardless whether you are in the red or not, you probably begin to consider closing the account and getting back your money. However, now comes the “recovery” part of the scam. After stating that you wish to withdraw your money, they will know its time to redirect you to the “recovery people” who will further stall you in any way possible. The angle here is simple – remove the last guard you may have – filing a chargeback with your bank. You may do that only during a limited time-window, once it passes – your money is gone for good.

What to do when scammed?

Unfortunately, much of the forex trading world is overshadowed by the huge numbers of scammers. All a trader may do is be well-informed and, in case he is the subject of a fraud – stay calm and not panic! The chance for panic is greatly reduced if such a situation does not take you by surprise. Here are the available options for scammed traders: You may contact your bank or credit card provider and file a chargeback, , as was noted above. The high instances of fraud have provoked both Visa and MasterCard to take effective measures against scammers in the business. Keeping true to their intentions, MasterCard has already increased the previous time period of six months for filing a chargeback to a year and a half and Visa is expected to follow suit in December. If, however, you have provided the broker with your credit card details, immediately cancel your credit card. If you have given information regarding your online banking pass – you should switch it asap! Beware of potential calls from self-described “recovery agencies”! They prey on scammed and vulnerable traders who are desperate and ready at anything to somehow retrieve their funds. They will say that in exchange for an up-front payment, you will get your money back, but no such thing will occur!