Beware! CoinFxIndex 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.
We are reviewing CoinFxIndex, a shady offshore broker presenting itself as the largest financial market, whatever this should mean. Otherwise, their conduct is questionable because they certainly do not act as a trustworthy business. In fact, the people standing behind this entity are proven fraudsters, so we can reasonably consider CoinFxIndex a scam. Find out who they are in the full CoinFxIndex review.
CoinFxIndex REGULATION AND SAFETY OF FUNDS
CoinFxIndex is a brand name of ROI STOCK LIMITED, a St. Vincent and the Grenadines company. Their registration itself is a problem because the Caribbean island’s regulator doesn’t license or in any way control the brokers legally operating from there. In fact, scammers and dodgy companies are overcrowding SVG precisely because of the regulation deficit.
CoinFxIndex is a fine example of what we just said- ROI STOCK LIMITED is an exposed scam that various European regulators blacklisted. Your funds are in danger if you deposit with them. For more details, see the Austrian financial authority warning at the end of this section.
Avoid CoinFxIndex and check the high-rated EU brokers and British brokers if you are interested in trading and investing. Europe is one of the few places where deposit insurance funds protect traders and investors in case of insolvency or fraud. For example, CySEC brokers’ clients can claim up to 20 000 EUR in compensation, while the British guarantees are up to 85 000 GBP per person. Europe offers high-grade security, so you can safely trade with the regulated FX companies operating there.
CoinFxIndex TRADING SOFTWARE
We can’t verify that CoinFxIndex offers any trading software whatsoever. That’s because it’s impossible to access the client area unless you submit a copy of your ID card or Passport. Well, we uploaded fraudulent documents, but the verification process is rather long, and we couldn’t get to the Dashboard at all. Moreover, there is nothing about platforms or trading conditions on the website, and we can’t discuss spreads or leverage levels.
As explained, this scam doesn’t have a platform, so see some licensed MetaTrader4 brokers and MetaTrader5 brokers. We recommend these because MetaTrader is stable software featuring advanced trading tools such as Expert Advisors, Algo Trading and various complex indicators. The platform also has a marketplace with more than 10 000 apps you can use in your strategy.
However, we’ll shortly discuss leverage and its regulation because that’s a powerful financial tool, which is very risky indeed. Ratio such as 1:500 significantly enhance profit potential, but it could inflict heavy losses if not properly used. As a matter of fact, leverage is so risky that many financial authorities imposed customer protection regulations to restrict its usage.
So, EU, British and Australian brokers are limited to 1:30, while the Canadian brokers and the US brokers are not allowed to provide more than 1:50. Most of the brokers offering higher levels such as 1:100 and above are poorly regulated offshore businesses, so be cautious.
CoinFxIndex DEPOSIT/WITHDRAW METHODS AND FEES
CoinFxIndex is so secretive that we couldn’t actually find much information about the provisions of their services. There is no information about minimum deposit/withdrawal requirements. The funding/withdrawal methods are supposedly Credit/Debit cards and Wire Transfers. From both, the bank card depositing is considered safer because card issuers such as Visa and MasterCard grant chargeback rights and customers can theoretically get their money back within an extended period of time.
Anyway, see the high-rated Skrill brokers, Neteller brokers, FasaPay brokers, Sofort brokers, and Bitcoin brokers if you have a preferred payment system and forget about CoinFxIndex because it’s a scam scheme.
There are various charges such as rolling fees, service fees, deposit fees, withdrawal fees, renewal fees and so on, but CoinFxIndex fails to specify those in size and scope. The inactivity fees are seemingly favourable, but CoinFxIndex is a scam, so we can’t validate those provisions. After 12 months of inactivity, an account becomes dormant and will be charged an annual maintenance fee of $30, which is pretty much in line with the regulated industry standards.
The last charge we are going to discuss is the liquidation service fee. According to the clause in the T&Cs, accounts that have been active for less than 30 days or have less than 25 trades executed will be charged 150 EUR in case of full liquidation.
Generally, there are trading incentives available, but the additional provisions are unfair. If traders take advantage, they will have to execute a minimum trading volume of 40 times the bonus amount to become eligible for withdrawal. No withdrawals are possible unless the bonus requirements are met, so technically, the trading incentives lock the account, and traders can’t take their money out if they want to. Beware.
Overall, CoinFxIndex is a broker operated by scammers, so stay safe and avoid it.
HOW DOES THE SCAM WORK
The Forex scam is a popular type of fraud that’s rather distinctive because it’s effectively a process. In the usual scenario, the victim clicked on an ad, then received a phone call, and at some point got convinced to deposit money. To make people accept their fraudulent offers, scammers would present deals that sound too good to be true, bonuses, get-rich-quick schemes and so on. Their imagination is very rich, and they would invent as many stories as possible to get the deposits wanted.
But the money transfer is not an end; that’s the beginning of the actual Forex scam. Gradually, scammers would manipulate the victims and would urge them to invest more. For example, the con artists would not allow people to trade but would pretend to manage the account instead of the traders. They’d then falsify the trading results to show victims massive profits and ask for more money, promising to generate a fortune in no time. However, if the victim asks for a withdrawal, that won’t happen. Scammers would come up with a story that the unfortunate trader needs to deposit again if they’re going to pull money out. Those criminals won’t stop asking for more, whatever the situation.
In the worst case, the victim would believe in the scammers’ falsehood and deposit repeatedly. Sooner or later, though, the scam would become evident, and that would be a signal for the fraudsters to cut the communication and disappear. They would abandon the website and would create a new one, carrying on with their criminal activities.
WHAT TO DO WHEN SCAMMED
Unfortunately, no one is immune to scam. If this unfortunately happens, the first thing to do is to protect yourself from further risk. Contact your bank and explain what happened to you so that they can give you instructions and 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, call the police if you feel necessary. Seek help actively!
Remember, it’s crucial not to rush blindly trying to recover your funds because many scam chargeback agencies and individuals are trying to double scam the victims. They ask for upfront payment, take the money, but won’t do anything to help you!
Share online your experience; it’s important to protect others, as well. Be responsible!