Coin Capital Group Trade Review
Who hasn’t heard of the forex market, or the stock market? Perhaps, it is the cryptocurrency market that has caught your interest, as it is currently making headlines. No matter which financial market it may be, there is no denying that it is lucrative and there is a ton of money to be made there, as long as you are willing to take the risk. Regardless of which one you decide to explore, your first priority should be to find a good broker. Easy as it may seem, a lot of people stumble here because scam platforms are rampant in this market. It is through this Coin Capital Group Trade review and others that you can avoid this scenario.
Initially, people didn’t have any idea about scam brokers, so they signed up with the first one they came across. But, it didn’t take long for awareness to spread and people to realize that these fraudulent brokers were looking for the opportunity to exploit people as much as possible. The problem is that as people became aware, these scammers got smarter, making it difficult to identify them. However, this doesn’t mean it cannot be done. It is undoubtedly possible for people to distinguish between authentic and scam brokers, as long as they know what to look for.
There are some red flags that exist in fraudulent brokers, which they cannot hard, no matter how hard they try. You just have to be ready to identify them to know the truth. When you check out Coin Capital Group Trade, it will come off as a market-leading platform that offers forex, stock and crypto trading. But, a deeper look into it will reveal some of the major problems with this broker that shouldn’t be ignored. What are they? Check them out below:
Warning by the FCA
Brokers are usually distinguished because of their regulatory status because this helps you determine if you can trade safely with them or not. Regulated brokers, for the most part, are reliable and authentic, because they are answerable to another authority and have to comply with policies and rules. Unregulated ones are mostly avoided because they are considered shady and don’t have to follow any rules. So, which category does Coin Capital Group Trade fall into? If you check out their website, you can see that the only information they have provided there is an email address and a phone number that boasts a UK country code.
This hints that Coin Capital Group Trade might be based in the United Kingdom, which explains why the country’s regulatory authority, the Financial Conduct Authority (FCA) has issued a warning against the broker. Indeed, there could be no bigger red flag than the fact that one of the world’s most reputable and leading regulators has issued a warning against this brokerage. Moreover, you will not find any company information available on their website, which itself is suspicious.
Outrageous bonus policy
If it wasn’t enough that Coin Capital Group Trade is not regulated, offers no company information and appears to be operating illegally from the UK, you will also find their bonus policy troubling. First off, considering that they are based in the United Kingdom, they shouldn’t be offering trading bonuses at all. After all, the FCA has banned this practice, as have a number of other regulators around the world, due to their potential of harming investors.
These bonuses usually have some strings attached, which can be exploitative in nature and this is exactly what you will see when you check the bonus policy of Coin Capital Group Trade. When you get the trading bonus, it appears to be a generous act on the part of the broker, but in reality, it is just another way to prevent you from making withdrawals. They have added a minimum trading volume requirement that you have to fulfill before you will be permitted to withdraw. The problem is that it is downright outrageous and impossible to achieve, which means you can forget about being able to withdraw your money.
No appropriate trading platform
Your trading experience with any broker greatly depends on the trading platform provided to you. This platform is the software used for trade execution and provides you the necessary tools and features needed for trading. It is a given that you would want to have access to the best solution out there i.e. the MT4 or the MT5 platforms, which are renowned in the market and a favorite of traders. As Coin Capital Group Trade presents itself as a market-leading broker, you would expect it to offer either of these solutions. But, you will be doomed to disappointment because they just have a web-based trading platform for their clients.
Extremely high leverage
Some might consider high leverage an advantage because it allows you to trade more with limited funds, but you shouldn’t forget the risks associated with this high leverage. You will find 1:500 leverage being offered by Coin Capital Group Trade, which further confirms that they are operating illegally in the UK, because the FCA does not permit brokers to offer such high levels.
High minimum deposit
Another red flag you will be able to identify is the high minimum deposit you are asked to deposit at Coin Capital Group Trade. You have to deposit $5,000 for opening an account, whereas the standard minimum deposit of most brokers doesn’t go past $250.
Only crypto deposits accepted
If all the aforementioned problems weren’t enough, you will discover that Coin Capital Group Trade supports Bitcoin deposits only. This is a red flag because crypto deposits are non-refundable and cannot be tracked either, which has made them a popular payment options for scammers. Always choose a brokerage that allows you to use methods like credit cards because they are eligible for a chargeback in case something goes wrong.
Once you understand the red flags associated with Coin Capital Group Trade, it becomes easy to determine that this broker should be avoided at all costs.