Beware! CoinBank 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.
CoinBank comes with a visually aesthetic website and a surprisingly handy interface. Moreover, there is sufficient trading information to inform users of what the form has to offer. But these are just our preliminary conclusions. As we dug deeper, the more complicated things started to get. Read the review to find out all about CoinBank.
The process of registration is reminiscent of illegal forex brokers. After we finished the brief sign up process, it was revealed that the main user area is a trading software. This is an approach utilized mostly by scammer brokers. However, it had to make do for an account is the only way to verify the trading conditions on the website. This is the only place that suspicious brokers reveal their true conditions.
The trading terminal revealed a 3.8 pips cost of trade for the EUR/USD currency pair which is greatly unfavorable to users. The leverage was capped at 1:200, while the trading assets are forex currency pairs, cryptocurrencies, indices, commodities, stocks, ETFs, and Bonds, not a bad list, if we may say so.
English and German are the only available languages.
COINBANK REGULATION AND SAFETY OF FUNDS
The Terms and Conditions claim that the agreement between user and broker is in accordance with the laws of the United Kingdom.
In the UK the responsibility of regulating the FX market falls into the hands of the FCA. If the FCA has not licensed a broker, that means that the broker, should it be located in the UK, is working illegally. CoinBank is nowhere to be found in the FCA registry.
Throughout the legal documents, the broker keeps saying that the firm functions in accordance to local jurisdictions. This is a crafty way to say that you are not licensed. It is the first sole responsibility to be regulated by a watchdog. It should present this clearly and be one of the first things that the users see. In CoinBank’s case, things are not structured this way.
And that’s all there is to this broker, UNLICENSED, and thus a risk to all investors!
There is no reason at all to invest in an unregulated broker. The best advice there is, concerning the choice of a broker, is to always check for a license. If the broker has an FCA and CySEC license you are off to possibly the best start, as these are some of the top regulators in the industry. Usually, legitimate FX overseers integrate a set of rules to each of its listed brokers. Brokers form an agreement with them to follow very strict guidelines. Furthermore, some agencies, like the FCA or CySEC, have compensation schemes that reimburse clients whose brokers have become insolvent. As you can see, a regulated broker benefits not only the brokerage itself, but the traders as well.
COINBANK DEPOSIT/WITHDRAW METHODS
The minimum deposit will be taken from the website. This is because the deposition section on the user area revealed nothing. The entire payment area was missing.
The minimum deposit is said to be $250, which is very possible for this is the most common requirement. Depositing means are bitcoin, wire transfer, and credit card.
Withdrawals are also done through bitcoin, wire transfer, and credit card. The withdrawal section is working, which was a surprise to us. According to the legal docs: 5 days, withdrawal fees are applicable but never detailed. There are other fees as is expected for these types of brokers, most of these commissions have not been detailed.
However non of this information matter, because of the following clause, probably one of the most notorious clauses that any broker can include. The Non-Deposite Funds prohibits users from withdrawing their profit. That’s all there is to it.
All we have covered so far is a clear example of an illicit broker. There is no reason for you to make an investment in CoinBank. This is a scam, and your funds will never be returned!
How does the scam work?
If things feel uneasy or suspicious, then you are probably being scammed. Most fraudsters adapt the same scam structure, however, they might add their own little nuances. The point is, that if you think you are in a scam, then you probably are!
The first step is the online ads. These annoying pop-ups or side distractors are the essence of scammer brokers. It’s through them that the user is lured into the fake broker website. The link of the ad leads to a website or a registration form. Both require the user to write down his or her personal details, like email and telephone number. Do not give these away. The scammers will contact you if you give these details away, and will sooner or later try to charm his/her way into your wallet, by asking you to deposit.
After a deposit is made, and hopefully it isn’t, then the first step of the same is complete. The following step concerns the account manager, a.k.a the advanced scammers. These individuals are charming convincers, and if they succeed, it means that you have deposited a second time. This can go as long as the user keeps depositing. When suspicious arises, one of these things will probably happen: the broker will delete the account of the user without a reason; the broker will not allow for withdrawals, or the broker will keep finding ways to stall withdrawals.
What to do if scammed?
Filing for a chargeback is the best advice. VISA and MasterCard have prolonged their chargeback time span to 540 days.
If the deposit is made through wire transfer, then change your user name and password as soon as possible. Another step is to contact the bak as they might have a specialized procedure for such cases.
Another crucial advice: NEVER deposit in unregulated brokers through bitcoin or any other form of cryptocurrency. These payment methods are untraceable, meaning that once a deposit is made, it cannot be traced. The money is lost.
Last but not least. recovery agencies are definitely a scam. These programs, or whatever they call themselves, offer help for defrauded users…for a price. Once the fee/tax is collected, these agents disappear, leaving you at a bigger loss.