Beware! Coinexx 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.
Our first impression from Coinexx is that this company is not set for newbies and amateurs in the forex trade – high leverage, fast trading system, cryptocurrency as payment method – a lethal combination for the new and inexperienced trader. Trading via the electronic communication network (ECN) where the best available buy/sell bids from various brokers are automatically matched and orders executed, it’s like riding a rollercoaster – exhilarating and dangerous.
We will explain now why if you choose to trade via this brokerage, you’ll be taking high risks with your money.
The company trades in forex, commodities, indices and cryptocurrency using electronic communication network (ECN) and it offers only one live account – Pro ECN (as you can see from the screenshot below). To open an account is too easy – you register providing very basic information and almost instantly you get a verification email with login info for your trading account.
Coinexx Regulation and safety of funds
Nowhere on the company’s website could we find the address or any information about an address or even a phone number, except for two email addresses to contact the company. Whether this company is legit or not is anybody’s guess. In the footer of the company’s webpage we found the following disclaimer:
“This website is not directed at any jurisdiction and is not intended for any use that would be contrary to local law or regulation.”
This is highly alarming because in the risky business of forex trade, not having a proper registration and not being regulated means that nobody cares what is going to happen to your hard earned funds. Sure, the company claims to provide security of funds by keeping them in a cold storage wallet without internet linkage and secured in offline devices and providing end to end encryptions. This is all good but can wolfs keep the sheep safe from other wolfs?
If you care about your money, we recommend that you choose a legitimate and regulated forex company for your forex trading. Don’t do business with shady companies that are not even registered. You can look up forex companies in the well-established jurisdictions around the world, i.e., EU, UK, US and Australia. Why do we recommend you do that? Because forex companies in those jurisdictions must meet rigid requirements in order to get registered which sieves the scammers. Will a scammer invest 730,000 EUR capital as legit brokers in EU and UK must do? Will a scammer deduct money to a compensation fund so in case of bankruptcy its clients are compensated with up to 20,000 EUR per client if regulated by CySEC or up to 85,000 GBP if regulated by FCA? Of course not!
Coinexx Trading software
As its trading software, Coinexx offers MetaTrader4 and MetaTrader5 platforms. Both platforms have an excellent reputation among forex brokers for their in-built indicators and analytical objects that help following changes on the market. They are easy to navigate and offer a financial calendar, an app market, trading signals (for a subscription fee), VPS and code base with customs scripts. Also, MeatTrader 5, for example, offers 6 types of pending orders, Depth of Market access and data on time, etc.
Let’s look at the interface of the demo account (screenshot below). We see on the lefthand side the forex pairs with their bid/ask values. We observe that the spread for EUR/USD is 0.1 which is not far off from what is shown on the account info (first screenshot). Although the leverage on this demo account appears to be 1:100 for the EUR/USD deal, if you look at the account information in the first screenshot, you’ll see that it could be as high as 1:500. High leverage can mean big win or big loss. Some countries and trading zones have a cap on leverage to minimise the risks for traders of losing their funds. In USA, for example, the cap on leverage is 1:50 and in Europe – 1:30. We advise you to think carefully when selecting your brokerage and pay special attention to the leverage they offer.
Do not forget though that the excellent trading platforms this company offers cannot compensate the fact that the company is not legit.
Coinexx Deposit/Withdrawal methods and fees
The minimum initial deposit is 0.001 BTC with no transfer fees.
If MetaTrader 4 is your trading platform of choice, then you need to fund your account using USD or EUR. If it is MetaTrader 5, then you can use USD or a variety of cryptocurrencies, i.e., bitcoin, litecoin, dash, ethereum, to name a few, which they can deposit in crypto wallets in various crypto currencies. We are not happy that the choices of payment methods are so limited. If you read the last section of this review, you will understand why. Clients using bank transfers and cryptocurrencies as payment methods will not be able to file for chargeback in case of scam. And looking at this company that is not registered and regulated, we can’t help it but worry about what is going to happen to your money should you choose to use this company for your forex trade.
As per the company’s policy, withdrawals are processed manually within 48 hours after placing a withdrawal request. Why does it take so long, we want to ask? With legit forex companies, this process is normally short.
The company offers 100% deposit bonus if clients have made a minimum deposit of $100 in their account. The maximum leverage allowed is 1:200. The Bonus Terms and Conditions have a stipulation that the bonus amount will be taken back in cases where the clients want to close their account or have incurred losses equivalent to the deposited amount. If clients want to make withdrawals from their trading account, a proportionate amount of bonus will be taken out as well.
Overall, we think that the deposit and withdrawal method policy of this brokerage does not work to its clients’ benefit and is a minefield of future troubles should you try to pull out.
How does scam work?
Scam works in sneaky ways because by the time you realise you are being scammed, it is already too late. And of course, this is what scammers want. They rely on duping people by promising them quick and easy profits via ads on the Internet or social media. Sometimes you don’t pay attention to those ads but sometimes they look so tempting that you think ‘why not?’ and you deposit an amount into the scammers account. From that moment on, you are being inundated by telephone calls congratulating you on your first step towards becoming rich and also, asking you if you’d like to invest even more into their schemes. After all, the more you invest, the richer you will be. Lulled by their sweet talk you realise that you are being scammed only too late. When you try to ask for your money back, you realise that it is not so simple. Scammers, who have already used your money as a commission do not have any intention of giving it back to you.
What to do if scammed?
There isn’t much of what you can do, unfortunately.
If you have paid via credit or debit card, you can file for chargeback. Visa and MasterCard have 540 days timeframe for chargeback, so there is some chance you may get your money back. However, if you have used cryptocurrency or bank transfer, you may just have to cut your losses.
In any case, be cautious if approached by recovery agents as they might be scammers as well promising you to get your money back. Check the credibility of the company and do not let yourself be fooled again.
Also, what you can do is cancel your credit/debit card if the scammers have your CVV code information and remove any software from your computer that gives scammers access to the data on your PC.