Beware! CoinGlobeFX 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.
We were somewhat impressed, if not intrigued by the CoinGlobex website. It did for us something. But sooner or later the built-up potential suddenly plummeted down, for a simple reason. The reason? TradingView bars all over the website, TradingView is a non-affilaited party that offers its charts to any website. It represents not the trading conditions of whichever broker uses it. How do we know? We have reviewed hundreds of illegal brokers that use TradingView in hopes of confusing users.
The registration was very simple and it did not really give us hope for a legit forex experience. However, we could not open a trading account, because the broker did not give us the log in details to the web-based MT4 platform.
Believe us when we say that we had no way to open an account. Thus all the trading conditions will have to be taken from the website. And what’s more, the MT4 server was under a totally different name, having nothing to do with the current broker.
This means that all trading conditions are not applicable to CoinGlobex, because the broker proves that it has no trading servers. This means that no spread and leverage are applicable here.
The website is made available in English only.
COINGGLOBEX REGULATION AND SAFETY OF FUNDS
There is something very suspicious and confusing going on with CoinGlobeFX. The regulatory situation is one of the most confusing ones we have ever encountered, so we ask you to bear with us.
The footer reveals that the holding company, Paycorp Limited, is regulated by the Vanuatu Financial Service Commission. And, wouldn’t you know it, the company is to be found in the official register of the regulator.
However, things are not as they seem, for the rabbit hole goes deeper than that.
On CONSOB’s website, we found a warning issued against CoinglobeFX by the CSSF: the Commission de Surveillance du Secteur Financier is responsible for the regulation of the markets industry in Luxembourg.
We went on the CSSF website to find out more about the ban. This is what the regulator disclosed:
So, CoinGlobeFX previously said to be regulated by the CSSF, and the watchdog sooner or later discovered its false claims. Furthermore, we were able to find some dozen pieces of evidence against CoinGlobeFX- multiple online sources claim that the broker is unregulated and a scam.
So how come its parent company is regulated by the Vanuatu Financial Service Commission? Our research suggests that it has nothing to do with CoinGlobeFX. In other words, Paycorp Limited is not in any way affiliated with CoinGlobeFX.
All of our online research on the Paycorp Limited company produced many results of different online businesses, including payment solution Payeer, based in, you guessed it, Vanuatu, with the same address as the one indicated on the Vanuatu Financial Service Commission’s website (image attached above). Here is the address of PAYCORP Limited, the holding company of Payeer:
Here is the company number of Paycorp Limited as seen at the footer of CoinGlobeFX’s website:
As you can see it’s the same company number as the one on Payeer’s website, as well as the same one found on the Vanuatu Financial Service Commission’s search result (image above). Therefore, Paycorp Limited has nothing to do with CoinGlobeFX.
Furthermore, CoinGlobeFX’s Contact Us page claims the broker is located in Belgium, which has nothing to do with all this mess.
Finally, the legal document did not function. We attempted to open them, only to be met with an error page. So no legal connection between the user and the broker. This is completely unacceptable.
CoinGlobeFX is shamefully UNREGULATED, a scam, and a risk to everyone!
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.
COINGGLOBEX DEPOSIT/WITHDRAW METHODS AND FEES
Withdrawals, on the other hand, are achieved through wire transfer, credit card, bitcoin, ethereum, and litecoin. The minimum withdrawal amount is $5.
All payment methods have a 2% commission, including a fixed charge of $2. However, litecoin transactions have a fixed fee of $4000 which is simply ludicrous and out of boundary. The payment handling tomes range from immediate to 2 days.
As there are no legal documents, no regulation, and a heap of other scammer elements, we have to advise all against depositing in this one!
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.