Beware! Coin Capital FX 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.
Not many of the forex brokers we are dealing with published the picture and the name of their CEO on the company’s interface, so when we saw the picture of Jacob Baraz, CEO for Coin Capital FX, we were rather intrigued. However, except for the company’s interface, the image of the esteemed CEO is nowhere else to be found. So, we dig deeper into the company’s website to find the information that will tell us if this broker is legit or not.
Coin Capital FX Regulation and safety of funds
Coin Capital FX is a binary option investment company that claims to be registered in the UK. We don’t understand how this could be true knowing that trade in binary options is banned in the EU. It was not surprising that we did not find the name of the company in the Financial Conduct Authority (FCA), the body that regulates forex brokers in the UK. We have now proof that this broker is non-legitimate and is possibly a scammer that you should stay well away from.
Trading in binary options, as the name implies, depends on a yes/no outcome regarding a certain price at a specified time and is as close to gambling as you can imagine. It’s a risky undertaking and the chances of making a profit are slim as, at the time of expiry, the price of the asset must be on the correct side of the strike price. In our opinion, the risks of engaging in such trading activities far outweigh the benefits and if you are a new, inexperienced trader, we advise you to look for other types of forex trade.
Also, finding a reliable and licensed broker must be your priority number one. We can suggest some well-established jurisdictions where there is a good guarantee for the safety of your funds. If you choose to trade with forex brokers from the US and Australia, you must know that to be licensed they must be well-capitalised. In the US, forex brokers must deposit no less than $20 million in the form of initial capital and in Australia, the initial capital is also quite high – 1 million AUD. Being well-capitalised serves also as protection against scammers as they will never invest such a high capital for the benefit of looking legit. The other purpose is to protect clients from unfavourable events in case the broker is declared insolvent. However, in these two jurisdictions, there are no compensation funds or schemes from which clients can be refunded in case of bankruptcy. In the EU and the UK, the lower initial capital of only 730,000 EUR is compensated by the fact that there compensation funds and schemes available to refund traders if their broker goes bankrupt. If the broker is regulated by FCA and contributes to the local Financial Services Compensation Scheme, its clients will be refunded up to 85,000GBP per person and if the broker is regulated by CySec and deduct funds toward the local Investor Compensation Fund, then its clients will be repaid up to 20,000 EUR per person. These are exactly the legit brokers you should be looking at in order to make your selection!
Coin Capital FX Trading software
The information about what trading platform is offered to the traders was not available on the company’s website and as we didn’t go through the verification process, we were unable to download it.
Nevertheless, we want to advise you that the two best trading platforms to look for are the MetaTrader 4 and MetaTrader 5 offer a lot of advantages to their users and it is not by any chance that they are used by around 80% of the forex brokers around the world. Both trading platforms are equipped with an auto trading option, an app market, a financial calendar, code base with customs scripts, VPS, trading signals that traders can for a subscription fee, etc. Also, the charting options and technical analysis indicators are out of this world and help traders to predict the future direction of exchange rates and make a profit.
Coin Capital FX Deposit/Withdrawal methods and fees
We searched the company’s website to find the Terms and Conditions document but it was not available. Ironically, when you register an account, you need to tick off the box that you agree to the Terms and Conditions but there is no link to open the document.
If their preferred trade product is in cryptocurrency, traders must make a minimum initial deposit of $500. For forex trade, they must invest $1,200 and for stocks, $3,000.
Payment methods as per the company’s interface are made via credit card, American Express and PayPal. However, in reality, when you open a live account and want to make a deposit, the only options available are in Bitcoin.
There is no information about what the withdrawal conditions are and what fees are involved, nor there is information on dormant accounts, etc.
How does scam work?
Scam works in different ways. It could be either that you receive an unsolicited telephone call or you see one of these flashy ads on the Internet or the social media promising you a quick and easy profit. Scammers will promise you the sky and the earth until you give way to temptation and deposit money. Once you give them money you get caught in the scammers’ mousetrap and the cheese in the shape of a big fat money fall is gone! It may take some time before you realise that you are being scammed. Scammers are smooth talkers and they are masters of deception. They will give you some excuses as to why the big profit hasn’t come yet and will try to lure you to make even a bigger investment because according to them, the more you invest, the more you profit. After you have been waiting for a while and you finally come to your senses, you realise that you are being scammed. All you want now is to get your money back and get out of there. However, the scammers won’t make it easy for you! They will try to delay you so that you miss the deadline for applying for a chargeback.
What to do if scammed?
There are a few things that you must do immediately – file for a chargeback if you have paid using a VISA or MasterCard. Those two payment providers allow you 540 days time frame within which you may file for a chargeback.
However, the chances are grim if you have used bank transfer or Bitcoin as a payment method. There is no chance you’ll be able to recover your money.
In such a desperate situation, some so-called ‘recovery agents’ may approach you with offers to recover your money for a fee. Be cautious as you may be dealing with another type of scammers. Always check the information about the recovery agency – make sure it is legitimate and transparent in the public eye. Also, some scammers publish personal comments after our review about how they have been scammed and how they found a recovery agent who helped them get their money back. Do not trust such comments and do not use the published contact info in them as it will lead you to another scammer!
And lastly, a reminder to cancel your credit card if you have given your CVV code to the scammers and erase any software from you PC that gives the scammer access to your personal data.