Beware! Coinfxc 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.
What more can grant confidence in a company than the face of its Managing Director smiling at you from the interface of Coinfxc. However, if you have time to waste, Google the picture to find out that it is not what it says. What other lies and misinformation are hidden on this broker’s website? We search for the truth.
Coinfxc Regulation and safety of funds
From the footer of Coinfxc, we find out that the company is regulated by the Cyprus Securities and Exchange Commission (CySec). However, after searching the register of this regulator, we did not find the name of Coinfxc in it. So, the information provided by the company is a lie.
Next, if you look at the ‘About Us’ section on the company’s website, you will notice posted a certificate that the company is registered in the US. The certificate looks legit and it is easy to fool people. However, if you check the date of birth of the company’s director Ms Onnapa Lergdee whose name is on the certificate, you will see that she was born in 2000 which makes it unlikely for her to be a director at such age. Furthermore, the name of Coinfxc does not appear in the registers of the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA) in the US (image below).
This is proof that this broker is non-licensed and non-legit. Entrusting your hard-earned money to for it for the dubious pleasure of trading with it will cost you dearly.
CySec has strict regulations for licensed brokers. They must have an initial capital of no less than 730,000 EUR which is one of the measures to ward scammers off. To guarantee the safety of clients’ funds, brokers must keep their accounts segregated with tier-1 bank establishments and report their transactions on a daily basis for the sake of transparency. One of the big advantages in trading with brokers licensed by CySec is that they must participate in the local Investor Compensation Fund from which, in case of insolvency, clients will be repaid up to 20,000 EUR per client.
If you want to expand the scope of your search for a licensed and reliable broker, you can also look up forex brokers in the UK licensed by FCA. The conditions for getting a licensed there are similar to those in the EU with the difference that the clients of a broker who is found insolvent can be compensated up to 85,000 GBP if the broker deducts funds towards the local Financial Services Compensation Scheme.
Coinfxc Trading software
The platform offered by Coinfxc is a web trader. You can access it straight on the company’s website. We tried though to register an account. Although we got a verification code, opening the account proved impossible due to broken links in this broker’s system. Also, keep in mind that the chart is developed by a third-party, TradingView.
The image below gives you an idea of what the platform looks like. It’s a third-party chart developed by TradingView displaying BTC/USD currency pair and the fluctuation in its price in a given time frame.
Although the broker claims to be offering low spreads starting from 0.5 pips, what worries us is the fact that the leverage offered is sky-high and can go up to 1:1000! First of all, this is another proof that we are dealing with a scammer lying to our face! For your information, legit forex brokers in the US have capped leverage and it cannot exceed 1:50! The parameter of the leverage offered by this broker is 20 times higher than the regulated leverage! In the EU, also, there is a cap on leverage which is 1:30. If this broker claims to be regulated by CySec, it is not complying by the regulations imposed in the EU either.
This broker claims that “by trading with a higher leverage, you may increase your earning potential”. This is true but also very misleading! High leverage often brings a substantial financial loss given the statistics that 70% of traders lose in transactions. We strongly recommend trading with a licensed broker that offers low leverage for the safety of your funds.
Also, we need to advise you that a web trader is not the best trading platform a broker can offer to its clients. MetaTrader 4 and MetaTrader 5 offer a lot more and they are choice number one among 80% of the brokers thanks to the excellent package of trading tools and instruments they offer among which we can mention the auto trading option, trading signals, VPS, code base with customs scripts, an app market and a financial calendar. The charting options and the technical analysis indicators these two platforms are equipped with allow traders to predict the future direction of exchange rates and make a profit.
Coinfxc Deposit/Withdrawal methods and fees
We noticed that this broker does not have Terms and Conditions document which is an important omission as the legalities of trade must be stated there. The link to ‘agree with the Terms and Conditions’ when registering an account does not work.
The only information we could glean from the website is that the minimum initial deposit is 300 EUR/USD. However, we do not have information about what payment options are available to the clients.
With such scant information about the deposit/withdrawal methods and fees, trading with this broker is extremely dangerous.
How does scam work?
Actually, it’s quite simple and people often fall into the trap of experienced scammers. We bet you have seen those attractive ads on the Internet promising big and quick profits over a short period of time. Just provide your personal information, and voila! The scam brokers are waiting for you and you will be inundated with phone calls promising easy profit. Tempting, right? You think ‘ok, I can spend $200-300 and see what profit it brings me’. Congratulations, you just provided a fat commission for your scammers that will be distributed down the food chain. Now you have ‘graduated’ to be handed over to a senior ‘broker’, a smooth talker who will try to convince you that there is no more perfect time like now to invest more money. After all, you want to make more profit, right? However, something starts to feel off and now you start asking yourself questions and all you want is to withdraw your money and get out fast.
Unfortunately, it is too late! Someone has pulled the cheese and you are trapped because scammers don’t give up easily. Scammers will do anything in order to delay you so that you miss the deadline for a chargeback.
What to do if scammed?
Our advice is to immediately file for a chargeback if you have been lucky enough to make your deposit via credit card. VISA and MasterCard allow for 540 days chargeback period, so you still have a chance to get your money back.
Things don’t look so good if your currency of choice has been Bitcoin or bank wire. In that case, you may have to wave your money goodbye.
There are some other things that you can do in case of being scammed – cancel your credit card if you have given your CVV code to the scammers. Also, erase any software from your computer that gives scammers access to your private data.
Be warned, as well, that some so-called ‘recovery agents’ may approach you promising to recover your funds for a fee. It could be another form of scam where scammers prey on your misfortune. Should you choose to use one, you must make sure that you are dealing with a genuine and legitimate agency by checking their credential and company’s information and transparency.