Beware! FXCoins 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.
FXCoins offers another below-average forex experience. The very generalized name does not help increase our first impressions. Furthermore, with the slogan “a broker that will not fail the forex market”, FXCoins seems to be pushing too hard for recognition. A positive aspect of FXCoins is its interesting website, but it’s not one for FX brokers. It reminds us more of some sort of a start-up company that a FX broker. Read on to find out where FXCoins goes.
The registration was incredibly easy and quick, which might be an indication that the broker takes things a bit too fast, without checking the status of its users. The client dashboard area does nothing out of the ordinary, making it very average looking.
What followed was a simple, yet visually pleasing platform. There it was revealed that the EUR/USD cost of trade was 5 pips. Aside from forex pairs, the user can also dabble in indices, cryptocurrencies, stocks, and commodities. The leverage was automatically chosen for us at 1:500.
The official languages of the website are English, Polish, and Russian.
FXCOINS REGULATION AND SAFETY OF FUNDS
The parent company, Clever Technologies LTD, is located in Saint Vincent and the Grenadines. This Caribbean nation is one of the most popular destinations for all sorts of unlicensed brokerages. The reason for this is that the nation does not regulate the FX markets industry. As of now, there have been plans for reforming the country and making it a preferable destination for forex brokers, but no news of this has been officially released. So, in our books, the country is closely associated with fraudulent brokers.
The footer reveals that the broker has two European partners, one located in Estonia, and the other in Poland.
However, there is no clearance on the nature of this partnership.
Furthermore, the User Agreement, which acts as the Terms and Conditions, claims at one point that the users are bound by the laws of Estonia. The alleged Estonian registration matters not. The broker is not regulated there! A sheer registration does not compensate for a lack of a license.
There is no mention of any kind that the firm in any way functioning under Polish laws. So the Polish registration is irrelevant;t it matters not if it’s located there or not.
From this, we can conclude that FXCoins is NOT LICENSED, and is therefore a risk to all investments!
There is absolutely no reason for anyone to trust and deposit in unregulated forex brokers. Always check first if a broker is regulated, and then proceed to deposit! The FCA and CySEC are some of the most popular licensors and we advise users to invest in firms that are legitimized by either of these. Both regulators, as well as all other legitimate ones, have a set of rules that apply to all brokers, and should brokers decide not to follow them the regulators will penalize them either by a fee or by taking their regulation! The FCA and CySEC include a compensation scheme for all users whose broker cannot pay them back, for all kinds of reasons, including insolvency. The reimbursed can go up to 85 000 pounds per person for FCA, and up to 20 000 euros CySEC.
FXCOINS DEPOSIT/WITHDRAW METHODS AND FEES
As per the user area, the funding methods are credit cards, debit cards, ipay cards, onero cards, ali bank cards, bitcoin, and blockchain. Just as a side note, depositing via cryptocurrencies, especially with illegitimate brokerages, is very unsafe. Deposits are untraceable when made these ways, and as such once they are made, they may be forever gone. The minimum deposit was 1 Russain ruble, which is around $0.013
The withdrawal methods were the same as the depositing ones. The typical deposit processing time is 5 days. There are various fees mentioned throughout the legal conditions but no withdrawal fee is ever disclosed.
All in all, FXCoins really is not worth your time and money. Consider this: the company is unregulated, there are undisclosed fees, and the spread is ridiculous. All the signs of a scam!
How does the scam work?
Most fraudsters use the same scheme over and over again. However, they might take a different approach to use it, and that is why it is always recommended to take your time with a broker and see if are in the middle of a scam.
Online ads are the first step to getting scammed. These ads promise pure fantasy scenarios, like making thousand in a day while living on a beach house, etc. Those that are tempted will be redirected to a website where they will be asked to give away personal information, most notably email or telephone number. If any of these is given away, the person will start receiving emails or telephone calls that will push him or her to deposit in a given broker/investment scam.
The more advanced scammer, the so-called “account managers” will continue to drain you, through further phone calls. They will convince you to deposit even more. When the client feels like he or she is being scammed, all withdrawal requests will vanish and the broker will stop responding to you; they have disappeared with your money. At times the whole website goes down.
What to do if scammed?
The best advice we can give you is to file for a chargeback as soon as you get scammed. VISA and MasterCard have extended their chargeback time span to 540 days, so there is plenty of time to do that.
Those that have deposited via bank, we advise to change passwords and block any compromised accounts. Or you can contact the bank and check with them.
What’s more, is that users should never invest through crypto with unregulated brokers. Once a deposit is made the user can not get the money back!
Finally, users will find that there are recovery agencies that claim to help users who have been defrauded by scammers. The irony here is that these agencies are also scammer schemes!