Beware! Coinsx21 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.
Coinsx21 states to have a unique vision to provide unparalleled advanced trading conditions, advanced education, and state-of-the-art trading tools in the Forex industry. It also claims to be transparent, to keep clients’ funds secured and to provide algo trading. Well, none of it is true. That’s a scam, and we are going to prove it in the following review.
Coinsx21 REGULATION AND SAFETY OF FUNDS
Coinsx21 introduces as a brand of CoinShares Capital Markets (UK) Limited- a British company holding a license issued by the local regulator FCA. However, the licensee is not associated with the broker reviewed, so the latter is a clone firm pretending to represent a regulated trustworthy business. That’s a scam, and you’ll waste money on fraud if you deposit with Coinsx21.
Nevertheless, we found indications that Coinsx21 is an offshore broker, which doesn’t really change anything. Namely, it’s allegedly created in the Marshall Islands– a shady tax haven that doesn’t even have financial authority, let alone a regulated Forex market. That’s important to note because clients’ deposits will go offshore, where no one can track the money down. That’s what scammers usually do!
Avoid Coinsx21 and always double-check before depositing because the Forex market is plagued by clone firms pretending to be authentic businesses. Also, you’d be much better off if you stick with duly licensed and adequately regulated companies as they are forced by law to treat their customers fairly. For example, due to regulations, EU licensed brokers store deposits in segregated bank accounts, which benefit clients in many ways. Most importantly, though, as the money is kept segregated, it won’t be lost if the company goes insolvent, but clients will get their deposits back if something wrong happens.
Now, see the high-rated EU brokers and British brokers on both lists we recommend. The licensed European companies are proven safe and also covered by deposit insurance funds- CySEC brokers’ clients can claim up to €20 000 in compensation, while the guarantees in Britain are even up to £85 000. The insurance funds secure yet another layer of protection, making the European companies a preferred choice for seasoned traders and investors. Think about it.
Coinsx21 TRADING SOFTWARE
Coinsx21 pretends to offer unmatched trading software, but it comes with a Webtrader that can’t provide anything valuable whatsoever. Compared to MetaTrader, it’s just laughable. That’s a scam anyway, so we’d like to offer the high-rated MetaTrader4 brokers and MetaTrader5 brokers on both lists instead. We put MTs forward as the terminals in question deliver peerless advantages- reliable indicators, easy-to-use charting tools and sophisticated features such as Expert Advisors.
The EUR/USD spread delivered by the Webtrader is 0.7 pips, so trading won’t be costly in general- $7 per lot. However, that’s irrelevant in this case as we are dealing with a clone firm run by fraudsters who want to steal your money.
As to leverage, Coinsx21 claims it can get to 1:400– a ratio no longer allowed by the British regulator FCA, which once again proves that the broker reviewed is at least illegal. Actually, leverage is regulated in many other countries only because of the risks involved and licensed EU, British and Australian brokers have to limit retail clients to 1:30 leverage, while Canadian brokers and US brokers to 1:50, respectively. Most of the brokers offering higher levels are usually anonymous and unregulated, so you’d better be careful with their offers.
Coinsx21 DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit is said to be $500, but it turned out that clients can deposit as little as $50– an inconsistency nonetheless. The funding methods are allegedly Credit/Debit cards and Wire Transfers, but when we tried depositing, it turned out that only the cryptoprocessor Itez and PBS are available- another inconsistency that’s strong evidence of a scam. Namely, if you fund the account via Itez, you’ll buy crypto money with your bank card and send the purchase to Coinsx21. Well, crypto payments are final and non-refundable, so the broker reviewed knowingly misleads customers and also makes sure it won’t have to deal with chargebacks. That’s a scam!
Anyway, while on funding, see the Skrill brokers, Neteller brokers, FasaPay brokers, Sofort brokers, and Bitcoin brokers on top of the lists if you have a trusted payment system. The high-rated companies are reliable, and you won’t find scammers among them.
Now we’ll show even more red flags. So, Coinsx21 doesn’t mention anything about the minimum withdrawal amount, but conditions change for the worse if clients accept bonuses. However, as you can see from the screenshots below, we found two totally inconsistent bonus clauses in the Terms, and we can indeed dismiss these as fraudulent. Not to mention that British brokers can’t offer bonuses to their clients. That’s a scam!
Lastly, we’ll focus on the adverse inactivity policy: clients should pay a $36 charge after a month of inactivity. Too much, given that most of the licensed brokers take 5 to 10 dollars per month. In other words, if you halt trading for a year, you should pay more than $400 to Coinsx21 just to keep your money in the account. A fraudulent condition nonetheless.
HOW DOES THE SCAM WORK
We exposed Coinsx21 as a scam, and now we’ll shortly describe how scams usually happen. We believe that the fraudsters running the broker reviewed are deploying the same or very similar tactics to rip people off their hard-earned money.
So, scammers are prowling online, and they create fraudulent websites, social media profiles and ads to get people into the fraud. Once you get trapped, they will pretend to handle your account and display winning trades to make you believe it’s worth dealing with them. However, scammers won’t let you withdraw profits but will constantly urge you to deposit, again and again, asking for much greater sums. Make no mistake about it; those criminals will try to squeeze as much as possible from you, so they’ll advise you to invest as much as possible.
You’ll probably understand what’s going on when you get determined to take your money back. When scammers realise you won’t deposit again, they’ll shamelessly announce that you can only withdraw if you pay taxes in advance. If you are persistent and refuse to follow their instructions, they will simply stop answering and disappear. Then, whenever fraud becomes publicly exposed and worn out, scammers will abandon the website getting away with their crime because the fraudulent brokers are always anonymous and unregulated.
WHAT TO DO WHEN SCAMMED
Unfortunately, no one is immune to scams. If you get scammed, the first thing you need to do is to consider the secondary risks. Deactivate your credit card and contact your bank and ask for advice.
Then, report what happened to you, file a complaint, contact the authorities, call the police if you feel necessary. Seek help actively!
Remember, it’s crucial not to rush blindly to recover funds because fraudulent chargeback agencies and individuals are stalking, trying to double scam the victims. They ask for upfront payment, take the money but won’t do anything to help you!
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