Beware! Coinlife.io 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.
Warning! Coinlife.io is a scam Forex broker that was officially blacklisted by a European financial regulator. A warning issued by a financial authority is the final proof of scam which confirms that a Forex broker should be avoided. Find out which the regulator is in the full Coinlife.io review.
Coinlife.io REGULATION AND SAFETY OF FUNDS
Coinlife.io is an offshore Forex broker that’s allegedly registered in the Commonwealth of Dominica and operated by a company named PivoTech Global as seen from the picture above. Commonwealth of Domonica is one of the many places where the authorities poorly regulate the financial sector. In fact, the Forex brokers operating there work without being supervised, meaning the clients cannot benefit from any protections whatsoever. But the biggest problem for Coinlife.io is the official warning that the British financial regulator- FCA published against them. You can see a picture from the notice made by the Britons at the end of this section.
It’s an interesting fact though, that Superfive– another shady, controversial offshore Forex broker is run by a company bearing the same name- PivoTech Global, but with St. Vincent and the Grenadines registration. We do not believe it’s just a coincidence!
Your funds are in danger if you make a deposit with Coinlife.io because it’s an unlicensed, unauthorised and unregulated scam Forex broker, which is going to pocket your money if you start trading with them.
Your choice should always be a transparent, legitimate and regulated Forex broker, preferably in Europe, holding CySEC(Cyprus) or FCA(UK) license. These jurisdictions created the safest financial environment for your deposits, and the authorised trustworthy Forex brokers are going to treat your funds with an utmost care.
But most importantly, there are money protection funds that were established throughout Europe, such as ICF(under CySEC regulation) and FSCS(under FCA regulation) which guarantee the deposits made by the customers. In Cyprus you can make a claim of up to 20 000 EUR per client, while in UK the guarantees are of even up to 85 000 GBP per client. EU member state is compelled to create and further operate similar insurance funds, which are considered to be the last resort for the traders, in case a Forex broker faces difficulties to meet its financial obligations.
Coinlife.io TRADING SOFTWARE
Warning! Coinlife.io claims to offer MT4 accounts but the platform is not available in reality! They speculate by taking advantage of the Metatrader solid reputation and it’s yet another major red flag!
Coinlife.io actually offers some web-based platform probably developed by themselves, which we consider unsafe and unstable. It consists of a Trading Panel and a TradingView chart, which by definition should serve for information purposes only. But we noticed that at times the quotes on the Panel did not match the quotes on the chart! Warning! Coinlife.io manipulate prices!
The EUR/USD spread, however, is 1 pip most of the time, which is in line with the rest of the industry. The spread forms part or all of the trading costs for the clients and the lower difference between Buy and Sell benefit the traders.
Warning! Unknown leverage levels! The account we opened came with some default leverage level applied which we don’t know about and we can’t adjust it to our preferences. They claim to offer a ratio of 1:100, but we cannot validate their statement! The leverage is a crucial element in trading because it opens the markets for literally everyone. The traders can multiply the size of their position by providing just a fraction of the sum they want to place on the market. But the risks escalate at the same time and we have to warn the traders that ratios such as 1:500 are really dangerous for their funds. When trading on 1:500 a small move in the wrong direction of no more than 20 pips would be enough to utterly destroy the trader’s account. EU, UK and Australia (from the spring of 2021) imposed a leverage cap of 1:30 on the markets as a customer protection measure, disallowing the brokers to offer higher ratios to the traders.
We recommend that the traders should avoid scam creatures such as Coinlife.io and start trading with legit MetaTrader4 and MetaTrader5 Forex brokers because MT is the best retail FX platform for the traders. It’s stable, reliable and easy to use, but also comes with sophisticated trading tools one can hardly find anywhere else for free. The list includes Expert Advisors, Automated trading, Complex Indicators, Strategy Tester, its programming language- MQL and even a marketplace where the traders can buy or use for free third-party-developed solutions.
Coinlife.io DEPOSIT/WITHDRAW METHODS AND FEES
The minimum initial deposit is $200, which is double than the standards for the regulated brokers which ask for $100 from the traders on average.
Warning! The funding methods available are only Credit/Debit cards and Phone Deposit. The trader should never make deposits over the phone because their details would easily become available for the scammers. In this case we do not exclude Identity Theft, as well, and you can find out more about this fraud in the section below.
The minimum withdrawal is said to be $100 for Debit/Credit cards and $250 for Wire Transfers. It’s an unfair clause if compared with most of the legit brokers, which do not limit the traders as to the amounts they can withdraw. The withdrawal request is said to be processed within 3-5 days, which is a bit longer than the regulated brokers’ standards.
An account becomes dormant after 60 days of inactivity and will be subject to a one-off account maintenance fee of $200, followed by a 5% monthly deduction or at least $20. It’s an unfair clause whatsoever, which allows Coinlife.io to pillage the traders’ accounts! In comparison, most of the legit brokers allow at least 6 months to pass and will charge the account with 5 to 10 dollars per month at most.
Coinlife.io does not offer bonuses at the time. We have to make it clear for the traders- the bonuses are not free money, but a leverage tool that further increases the risks for the traders and benefit the brokers, not the traders!
Stay away from Coinlife.io; it’s a proven scam!
HOW DOES THE SCAM WORK
The scam is a criminal activity; the scammers are trying to defraud people by making them believe that the markets are nothing to worry about, and it’s no hassle to make vast amounts of money. Mostly, the scammers are hiding behind offshore companies, offshore Forex brokers, trusts and so on, trying to remain anonymous and difficult to trace. It is also little or no FX regulation in the offshore domains such as St. Kitts and Nevis, Marshall Islands, Commonwealth of Dominica or St. Vincent and the Grenadines- the most popular destinations for shady and illegitimate enterprises. The lack of regulation makes the scammers invincible, as they are not going to bear the consequences of their felonious actions. Regulation and authorisation mean customer protection and safety, no financial regulator such as CySEC or FCA will make it possible for a scam Forex broker to conduct illicit activities.
Identity Theft is a popular fraud and a serious crime Having your personal information the scammers can access and drain your bank accounts or they can open new ones in your name and take out loans or lines of credit. Also they can purchase expensive goods, gain access to your government online services etc. Scammers might also use personal data to register companies in your name, facilitating their illegal activities. You should always make sure to keep your documents safe. Do not submit copies of your ID, Passport or bank cards to fishy websites and controversial Forex brokers. Furthermore, do not ever make deposits over the phone due to security reasons, but also because thus way you are dong a favour to the scammers, facilitating their fraudulent schemes!
WHAT TO DO WHEN SCAMMED
No one is immune to scam, and anyone can fall into the trap. Scammers are always 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 necessary 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!
It’s very important not to rush blindly trying to recover your funds because many scam recovery agencies and individuals are stalking, aiming to double scam the victims. These will most likely ask for an advanced payment, but will do nothing to help you recover your losses!
Share online your experience; it’s important to protect others, as well. Be responsible!