Table of Content
Coin2FX Review: Read Before You Trade With This Broker
Table of Content
Coin2FX broker has raised anonymity to another level. Primarily this broker was offering Forex and CFD services. Until their trading scam is revealed. Even FCA was warning traders about this unauthorized broker scam. Coin2FX was under the ownership of Smart Trade and Investments LTD.
Continue reading this honest Coin2FX review to find all signs of a clear investment scam and why they are shut down.
|Platforms||Web-based trading platform|
|Spread||From 1 pip|
Regulation of Coin2FX and Funds Security
Coin2FX was allegedly based in the UK. That’s the country with one of the strictest regulations in the world. However, FCA never issued a license to this broker. Moreover, they issued a warning against them. Because they were offering services to UK clients without proper authorization. Not only that they don’t have FCA license, but also any other.
With this in mind, you know that your funds are not safe. Broker doesn’t have segregated bank account for deposits, doesn’t have negative balance protection or even guaranteed stop loss. Above all, traders that lost money due to the fraudulent activities of this scam broker don’t have a compensation fund available.
For instance, the UK’s FCA grants access to the compensation fund of 85.000 GBP per client. Australian-based ASIC requires a broker to have a segregated bank account. All those are some important facts to consider when choosing your broker.
Coin2FX Trading Software Overview
It’s not surprising that this broker offered a poorly designed trading platform. It’s a proprietary web-based platform with only basic trading tools. Only standard charting options and limited risk management tools are available. Not to mention the lack of social and copy trading or algorithmic trading.
Another key point is access to the platform through mobile devices. Web-based platforms depend on your web browser. That’s why easy access to the platform is crucial for pro traders. On the contrary, the Coin2FX broker never provided a sustainable mobile app.
In the end, those web-based platforms often have access through the back end. That way brokers can easily manipulate market conditions. In general, the primary option for every trader is Meta Trader 4 or 5. Those provide advanced trading options and features. But have in mind that not even a broker with MT4/MT5 is always legitimate. That’s why you should opt for Tier 1 licensed trading companies.
What Account Types Does Coin2FX Offer?
The Coin2FX broker scam worked on a similar principle to any other. The goal was to extort as much money as possible from traders. They achieved that by offering many different benefits. Since their website is shut down currently, we can’t access account types.
But once you start reading Coin2FX broker reviews you realize that account types are not relevant. Because whatever money you deposit with them, you can’t get a withdrawal. After all, the broker was charging a 10% withdrawal fee for any funds that didn’t make 200 times turnover. This is a nonsense and obviously, shameless way to scam traders.
What’s common for all scam brokers is to hide trading conditions. That’s why they usually don’t offer a demo account. This is the case with the Coin2FX scam broker. Once traders see the real offer, everyone would back out.
What Can Be Traded on Coin2FX Market?
Luckily, now you can’t get access to their platform. But by reading this Coin2FX review you will understand all flaws and signs which to look for to avoid being scammed. Even though they were offering solid instruments range, that doesn’t make them legitimate brokers.
They were divided into 5 major classes:
- Forex – NZD/SGD, USD/JPY, GBP/NOK
- Commodities – natural gas, silver, crude oil
- Indices – UK 100, FRA 40, US 500
- Shares – Alibaba, Deutsche Bank, Bank of America
- Cryptocurrencies – BTC, LTC, ETH
Important to realize is that all trading conditions were missing. Traders didn’t know what leverage, what spreads, or what fees to expect with this broker.
Deposit and Withdrawal Process
Any deposited funds were immediately lost here. This broker doesn’t have segregated bank accounts for clients’ deposits. All details presented on their platform were fictive. As for funding methods, they were accepting the following:
- Bank cards – Visa/Master Card
- Wire transfers/Bank transfers
Besides verification issues and withdrawal fees, there is one more thing that was delaying withdrawals. Those are bonuses. They are banned all across the world, but especially in the UK and EU. The problem is that until you have traded a certain volume, you can’t request a withdrawal. That is always a suspicious and bad sign for any broker.
Moreover, you should always avoid crypto transactions with scam brokers like Coin2FX. Those are hardly traceable and encrypted. Don’t be surprised if you face such an option because it’s common among scammers.
How Do I Receive A Refund If Coin2FX scammed me?
Let us hear about your experience with this broker first. Luckily, upon any card transaction, you have 540 days to request a chargeback. Since this is not a regulated broker you can’t rely on any authority. That’s why you have our specialized fund recovery team.
It’s not rare that brokers like this use crypto transfers for funding methods. Even though they are hardly traceable, our team has a solution. CipherTrace is a great tool, not everyone has access to. We can trace crypto transactions to an original owner. Don’t let these guys get away with your money. Contact us now and book your first consultation already for today!
- Non-licensed trading company.
- They lack transparency about trading conditions.
- Fairly poor trading platform.
- Warning from the FCA.
- They are shut down currently.
FAQs About Coin2FX Broker
Is Coin2FX A Reputable Broker?
No. They are a non-regulated and untrusted broker that has even warning from the FCA.
What are Coin2FX Funding Options?
Broker did accept bank cards, whether Visa or Master and wire transfers.
Does Coin2FX Provide Trial Accounts?
Coin2FX broker didn’t provide a demo account for its traders, but only real accounts.