Coiniwelt Review – 5 things you should know about coiniwelt.com

Coiniwelt Review – 5 things you should know about coiniwelt.com

Beware! Coiniwelt is an offshore broker! Your investment may be at risk.

RECOMMENDED FOREX BROKERS

IG USForex.com

Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.

 

If you chance upon  Coiniwelt you will realise that it looks like so many other run of the mill interfaces of forex brokers with nothing standing out or memorable. We are going to look at some key features on this company’s website so we can advise you whether it is safe to trade with it or not.

Coiniwelt Regulation and safety of funds

The first and foremost thing you should do when considering a forex broker to trade with is its registration. In the Terms and Conditions document, we find that the address of this broker is in Marshall Islands which is an offshore zone. The Marshall Islands must be the paradise for dodgy brokers as there is no financial regulator and anyone can register a company on the Internet. This is sufficient proof for us that this broker is non-regulated and possibly a scammer. So, we warn you not to engage in any trading activities with it.

You should look elsewhere for a reliable broker and we advise you to research the well-established jurisdictions of the US, Australia, the EU and the UK where exist conditions that are favourable for forex traders. Only in these jurisdictions, you will be able to find a guarantee for the safety of your funds and protection against scammers. This protection is done by some rigid requirements that forex brokers must meet in order to get licensed. For example, they must be well-capitalised and provide an initial capital that is quite high, so that scammers cannot match it. In the US, licensed brokers must be really big money shakers and provide an initial capital at the astonishing amount of $20 million. Australia, the EU and the UK are no match for it as the initial capital is much lower than that. In Australia, brokers must provide 1 million AUD, in the EU and the UK, 730,000 EUR. Nevertheless, these amounts are no joke and scammers will never invest so much money just to look legit. Other protections to traders’ funds that exist in these jurisdictions include reporting regularly on transactions to avoid shady deals and keeping traders’ accounts separately from the brokers’. In the EU and the UK also exist compensation funds and schemes which help to refund traders if the broker goes belly up. If the broker is regulated by CySec and contributes to the local Investor Compensation Fund, then its traders can be repaid by up to 20,000 EUR per person. In the UK, if the broker is regulated by FCA and contributes to the local Financial Services Compensation Scheme, then its traders will be refunded up to 85,000 GBP.

These are the best conditions that exist and you are well advised to select from those brokers.

Coiniwelt Trading software

Coinwelt is a forex broker trading in forex, cryptocurrencies, stocks, indices and metals. The trading platform consists of a web trader (screenshot below). On the left of the screen is the menu for trading options, in the middle is the display of the chart showing the fluctuation in the price of one of the major forex currency pairs, EUR/USD. From the bid/ask price for the same pair, we find that the spread is 3.8 pips. Such spread is way above the industry average of 1.5 pips and traders will have a hard time making a sustainable profit in the long run as the cost of transactions will be too high. In addition to that, if you look to the far right, you’ll see that the leverage is 1:200 which increases the risk exposure for suffering a big financial loss. Please note that licensed brokers in the well-established jurisdictions with the exception of Australia have a cap on leverage and it cannot exceed 1:30 in EU and 1:50 in the US. Such caps on leverage exist to prevent traders from trading recklessly and limit the risk of financial loss. And so that you are aware, Australia will also impose a cap on leverage to match the one in the EU as of March 2021.

 

 

We also want to advise out readers contemplating forex trade that a web trader offers limited trading options as it does not contain many trading tools and instruments. If you want to find a better trading platform, we suggest that you find a licensed broker that offers either MetaTrader 4 or MetaTrader 5. These are considered the Rolls-Royces of the trading platforms thanks to the excellent package of trading tools and instruments including an auto trading option, an app market, trading signals, code base with customs scripts, VPS, a financial calendar, etc. Brokers also sing praises to the charting options and technical analysis indicators that these platforms offer. Thanks to the array of indicators, such as Bollinger Bands, Fibonacci retracement, moving averages, etc., traders are able to predict the future direction of exchange rates and make a profit.

Coiniwelt Deposit/Withdrawal methods and fees

Coiniwelt offers 6 trading accounts – Basic, Standard, Silver, Gold, Platinum and VIP (screenshot below). The minimum initial deposit for the Basic account is $250. This amount may not look too big to you but keep in mind that some licensed brokers will ask for as little as $1-5. The payment methods seem to be limited to payments via credit card only.

The minimum withdrawal amount is $50 and the processing time may take between 2 and 5 business days.

 

 

As per the company’s policy, a trading account that stays inactive for 6 months will be considered dormant and will be charged a 10% monthly fee. Asking for a percentage fee rather than a fixed fee is not beneficial to traders as they may end up paying too much if a percentage fee is involved.

This broker, as many other non-legit brokers do, offers different bonuses to its clients. This may seem like something attractive but you should be aware that these bonuses are not funds that belong to the trader but to the broker. There are always some conditions attached to such bonuses that can make the trader’s life difficult. In this instance, the company’s policy is that once received a bonus cannot be withdrawn unless the trader executes a minimum trading volume that is equal to the deposit plus the bonus amounts. Our advice to you is to never accept bonuses, but should you consider accepting one, ask yourself if you will be able to fulfil the conditions. Also, be aware that licensed brokers never offer bonuses or any free gifts and that is the demarcation line between them and the non-legit brokers.

How does scam work?

A lot of people get scammed in different scammers’ schemes not because they are naive but because scammers are masters of persuasion and manipulation. It all starts with unsolicited telephone calls or a flashy ad on the Internet or social media. Sometimes people give up to temptation and invest money in shady schemes made to look legit and attractive and always promising quick and easy money fall. Once you deposit money into any of these schemes, you reach a point of no return! Your money is gone down the scammers’ food chain and you’ll have a lot of trouble recovering it. Scammers will do anything in their power to delay you, so you miss the opportunity to file for a chargeback. They will ask you for this and that document and will find hundreds of reasons not to let you retrieve your money. The trick with offering bonuses in forex trading is one of those as your funds are mixed with the bonus money and it takes a lot of hassle to fulfil the broker’s requirements before you are able to withdraw any funds.

What to do if scammed?

Speed does it! You need to act very quickly if you want to recover your money. Immediately apply for a chargeback if you have made your deposit via credit card. Fortunately, VISA and MasterCard give you 540 days within which to apply for a chargeback.
If you have paid via wire transfer or Bitcoin, chances of retrieving your fund are grim. Anyway, we want to warn you that some of the so-called recovery agents may approach you and offer to retrieve your funds. For a fee, of course! Be cautious when dealing with them as it may be another form of scam! Always check if the recovery agency is legitimate and visible to the public!
Another thing we advise you to do is to immediately cancel any credit cards if the scammers have your CVV code. Also, make sure to erase any programs on your computer that give scammers access to your personal data on your PC.

Rich Snippet Data
Review Date
Reviewed Broker
Coiniwelt
Broker Rating
11stargraygraygraygray

Top Forex Brokers

BrokerCountryRatingMin. DepositWebsite
US5/5$50 Click for a special offerWebsite
USA5/5$250 Click for a special offerWebsite
UK, Cyprus, Belize4.94/5$5 Click for a special offerWebsite
Australia4.93/5$100 Click for a special offerWebsite
UK, Australia4.85/5$50 Click for a special offerWebsite
Cyprus, SVG4.8/5$100 Click for a special offerWebsite

Leave a Reply

Your email address will not be published. Required fields are marked *