Beware! Coinsoft 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.
Coinsoft is a shady offshore Forex broker and you need a thorough consideration before making any deposits with it. The mere fact that it’s headquartered at the infamous Suite 305 in the Griffith Corporate Centre in St. Vincent and the Grenadines should be enough for you to have your alarm raised. Also, the ridiculous statement on their website, which says that they reached a turnover of 165 billion USD in 2016 makes that company looks even more suspicious, because they are openly lying, no proof available, at all. There are plenty of other interesting and at the same time disturbing facts about this Forex broker, find out more in the full Coinsoft review.
Coinsoft REGULATION AND SAFETY OF FUNDS
Warning! Coinsoft does not fall under any supervision, it is an offshore broker which should be avoided. Coinsoft resides at Suite 305, Griffith Corporate Centre, P.O. Box 1510, Beachmont, Kingstown, St. Vincent and the Grenadines, which is an address linked to countless other controversial Forex brokers such as Optical Invest, Tol Tech FX, Commerce Wealth, Fin Future or Investactive, just to name a few, the last one actually being a proven scam! The alleged company standing behind Coinsoft is called TBCorp Ltd, but there is no information about it, whatsoever.
St. Vincent and the Grenadines is a Caribbean Island whose financial regulator SVGFSA doesn’t supervise the retail Forex activities taking place there, effectively meaning that the SVG brokers aren’t regulated in any way. This should be a warning signal for the traders, because the funds invested there do net get any protection, which is a tremendous downside risk that might lead to a total loss.
Your funds are not safe if you deposit with Coinsoft, it is an unlicensed, unauthorized and unregulated offshore Forex broker, and a very suspicious one, nonetheless! Avoid Coinsoft and choose a broker which is legit, transparent and truly regulated in EU or UK, as these areas provide the safest environment for your funds. The true Forex brokers comply to many rules and restrictions such as the minimum capital requirement of 730 000 EUR, client accounts segregation of its clients accounts, personnel qualification requirements and daily transaction reporting, all of which serve as a customer protection measures.
Most importantly, funds were established throughout Europe, such as ICF in Cyprus and FSCS in UK, which guarantee the deposits of the traders. Under CySEC(Cyprus) supervision you can claim up to 20 000 EUR in compensation, while in UK under FCA you are guaranteed of even up to 85 000 GBP. Each EU member state is compelled to create and further operate similar insurance funds, which are seen to be the last resort for the traders, in case a Forex broker faces difficulties to meet its financial obligations.
Coinsoft TRADING SOFTWARE
Coinsoft does not offer MT4 or MT5 accounts to its customers, only a web based proprietary trading platform is available. It presents some basic features but overall fails to be intuitive and easy to use, it isn’t as good as Metatrader, the market leader in the retail Forex industry, in any way. Many functionalities which can be found both in MT4 and MT5 are missing, such as Expert Advisors and Automated Trading, for example.
The EUR/USD spread is no less than 1.5 pips, but the price action is weirdly slow and seems very unnatural, compared to the one provided by the true Forex brokers. We suspect that the slippage at times of higher volatility might be devastating. The leverage levels, however, vary from 1:100 to 1:400! Warning, a red flag to note, Coinsoft does not let you adjust the leverage levels to a lower-risk ratios! Stay away from this broker!
Demo trading is available, which is one of the very few pros you can find.
Coinsoft DEPOSIT/WITHDRAW METHODS AND FEES
Coinsoft offers trading and saving accounts. The minimum deposit is 250 USD if you open a trading account. The real funding methods are only direct bank card transfer through their payment system or a deposit over the phone, a totally insecure way to transfer money and a red flag, beware! The saving accounts, however, are said to earn guaranteed 5-25% monthly profits, figures that are, mildly said, unrealistic and a scam sign!
Warning, another red flag, there are funding methods advertised on their web page, which are not actually supported, such as Skrill or wire transfers! In reality you cannot deposit money via Skrill, it is an information discrepancy and a certain scam sign!
The minimum withdrawal amount is 50 USD, with a flat fee of 30 USD per withdrawal request. However, if a request is not processed within 3 days a new one should be submitted, which is a perplexing clause, in the end it might turn out that you paid loads of money just to get your request processed. Warning, it is another scam sign, the true Forex brokers do not conduct their business in such an unfair to the customer way!
The dormant account policy is an obscure one. They say that an inactive account is going to be charged with fixed fee of 100 USD every 3 months, but remains unknown how and when an account becomes dormant, it seems to be the next unfair clause in their T&Cs.
Bonuses are offered, with separate T&Cs included, but there is no useful information provided. It is unknown whether it is a percentage, or a fixed sum, but the minimum trading volume required is totally unacceptable. Our calculations showed that if you get a 500 USD bonus you have to trade 250 lots in order to withdraw funds, which isn’t a decent requirement. 250 lots equals to 25 000 000 USD trading volume, a figure not worthy if you are to get only 500 USD as a bonus! Beware!
No affiliate or partnership programs are introduced by Coinsoft.
HOW DOES THE SCAM WORK
A group of scammers usually operates many different scam brokers, scam websites and call centers. Sometimes they will simply rely on the quantity, they will publish tens or hundreds of websites and will just wait for traders and investors with little or no experience to bite. Nowadays, it’s very cheap to create one, and it looks like a profitable strategy, as they carry on doing it.
Fraudsters are working in the social media nowadays, an increasing number of scammers will first introduce their “services” to the people through Facebook or Instagram. You will click on a page, promising a lush lifestyle if you follow their example, they will contact you, probably offer you a demo account and after some time you will be tempted to invest and make guaranteed profits. Once you are signed-up they will ask you to deposit money and this is just the beginning, because gradually they will be asking for more, no matter if you lose or make profits. The end is always the same, a robbed-off investor who lost his hard-earned money.
WHAT TO DO WHEN SCAMMED
No one is immune to scam, anyone can fall into the trap. Scammers are constantly looking for new and different ways to scam consumers. What you need to do first, in case you got scammed, is to protect yourself from further risks. Contact your bank and explain to them your situation, they will give you important instructions to follow and will help you, if possible, recover your money.
Report what happened to you, file a complaint, contact the financial regulator, contact other government institutions related to trading and investing. Seek help actively!
Share online your experience, it is important to protect others, as well. Be responsible!