Beware! I-Coin 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.
I-Coin reminds us more of a video game website or a start-up than a full-fledged crypto-based broker. But here we are! There is no doubt that I-Coin has some shady business going, as most of the signs we are accustomed to (concerning illegal brokers) are more than present here. Just to name a few, the website is full of filler texts, there is an undeniable focus on visual appeal, and the structure of the website screams uncertainty! The following review will give you all the necessary information to prove to you why I-Coin is not worth investing in.
Usually, we would speak of the registration and the subsequent user area but I-Coin did not allow us to register. The Sign Up page claimed that the firm did not accept users from our country. We tried over a dozen VPNs, and all of them failed. The page kept refreshing and remind us that our location was not optimized for I-Coin. There might exist the chance that I-Coin handpicks its own traders, and for those that it refuses to handle, it presents them with the aforementioned statement. We could be wrong, but seeing that I-Coin is on the shady side of the FX spectrum, the truth may not be so far.
With that said, we are left without a choice but to take all trading information, as well as the payment one, without creating an account. According to the site, the leverage is capped at 1:40. To our surprise, the trading software was open to all users without the need to register. This is a welcome approach. The web-based terminal revealed that users can trade only with cryptocurrencies. The leverage now can be interpreted as being very high when applied to cryptocurrencies. Usually, the spread for these assets does not go above 1:10.
The website is available in English.
I-COIN REGULATION AND SAFETY OF FUNDS
The regulatory information is not very reassuring, as it gives no hope for a real license. For instance, the footer puts the broker in the Commonwealth of Dominica, a location that does not have an official FX regulator. Thus even if I-Coin is located there, it most certainly is not licensed. The Terms and Conditions claim that the broker functions under the laws of Dominica, which again, is nothing of importance because the country does not have an FX regulator. I-Coin is not licensed in the Commonwealth of Dominica.
Furthermore, we found that it is the user’s own responsibility to check if she is eligible to trade with I-Coin. The broker is giving the user all the burden, which is a common trick used by scammer brokers to rid themselves of responsibility.
I-Coin is an exemplary shady broker and an UNLICENSED one. Users will lose their money if they invest here!
Investing in unregulated brokers is synonymous with losing money. Never be too quick to deposit! Always check for a regulation prior to depositing. This should always be any trader’s priority! If the broker at hand has a regulation, preferably FCA or CySEC., then you are good to go. From there on it’s all a matter of taste and the offered trading grounds. These two agencies are in the top 5 list of the best regulators in the world. All brokers under their gaze abide by the strictest of rules and guidelines. Furthermore, both the FCA and CySEC have a compensation scheme covering all users of brokers that cannot pay their dues, due to insolvency or other similar reasons. CySEC guarantees up to €20 000 per person, while the FCA guarantees up to £85 000.
I-COIN TRADING SOFTWARE
The trading platform is nothing to write home about. It may seem impressive, and to more inexperienced users it certainly will, but the just of it is that is uses visuals to appeal to traders.
The visuals conceal the fact of the limited features the platforms offers. These are chart customization options, stop-loss and take-profit, and pending orders.
I-COIN DEPOSIT/WITHDRAW METHODS AND FEES
The following information will be taken from the website.
The minimum deposit is $250. The legal documents mention the following as the payment methods: credit cards, debit cards, and wire transfer.
The user is to expect to receive his or her withdrawal up to 10 days after submitting a request. The minimum withdrawal via credit and debit cards is $100, and $30 through bank transfer. There is a $50 charge for a withdrawal between $1000 and $4999. For a withdrawal that is less than $250, the broker will issue a $25 commission. For an account with profit that has a pending withdrawal request under $30, I-Coin will issue a $25 charge.
There is no way that we will ever recommend I-Coin. There are many things that stand in its way, and we believe that your money will be at risk.
How does the scam work?
The scam tactics that brokers use come under a common denominator. Most of them have a similar structure, with small touches that some brokerages choose to include. When users fall for these they will sooner or later realize it!
The very first step resolves around the fake internet ad, found mainly in social media websites. These high-promising advertisements promote a care-free lifestyle where money is made with easy trading on assets like forex or/and cryptocurrencies. Clicking on one of these will redirect users to a website (usually the broker’s website, but sometimes an intermediary site) where they will be asked to provide contact details. Sooner or later, traders will start receiving calls or emails with alleged opportunities on huge profits in exchange for a minimum deposit, an amount that depends on the broker, but also on the user herself (high income vs low income).
If the user deposits her first deposit, then she has fallen into the scam, and the broker is ready to initiate the second stage of the scam. Enter the account managers (sometimes called senior managers). These will push for more deposits, while slowly taking over your account. They will be very aggressive with their solicitations, trying anything and everything within their ability.
At this point, the user has not yet withdrawn! When she attempts to do so, she will be greeted by a very unpleasant reality: her deposit(s) and profits can never be returned. The broker usually enforces one of the following: either it will block the account, it will close down the website, it will stall withdrawal requests, or delete the account!
What to do if scammed?
The first thing you can do, and the most crucial, it to file for a chargeback with your credit or debit card company ASAP! MasterCard and VISA have extended their chargeback period to 540 day.
Deposits that were initially invested through a bank, and were lost as a result of the scammer brokers, should stimulate users to CHANGE their bank account details- both username and password! Furthermore, it wouldn’t hurt them to contact the bank and check with them.
It is crucial to know to never invest in suspicious brokers through a crypto wallet. A majority of these payments are untraceable, and you are risking to lose all your money with no hope of ever seeing it!
The scammer, or other related parties, have a last card to play. Deposit/Investment recovery agents are notorious fraudsters that promise to recover all your lost capital in exchange for a fee. Once the commission is paid, these will disappear with the money, which leaves you at an even bigger loss!