Coinsbitx Review – Genuine or Fraudulent?

Coinsbitx Review

You have landed at this Coinsbitx review, which indicates that you want to open an account with a broker to trade in the financial markets. The idea of doing so is undoubtedly exciting because the markets are rife with opportunities that people can explore to make money.

The barriers to entry are also nonexistent and there is a great deal of flexibility and convenience as well. But, in order to make the most of trading, you do need to find a good brokerage. The problem is that finding one is not that simple.

Most people assume it will not take them much time, given that there are thousands of companies that are ready to cater to your online trading needs. While this is certainly the case, you also have to contend with scam platforms that have become quite active in the markets.

Given that there is a lot of money involved, it is not surprising that criminals want to exploit people, which means that you have to be careful and not let yourself become their victim.

How can you do that? You can accomplish this by assessing a broker’s offerings before you decide to open an account with them. Just because a company has a professional website and offers you everything you would expect from a good broker does not automatically make them so.

Scammers are very good at creating a false front and they can also set up websites that are good enough to fool even experienced traders. It does not cost a lot of money and can help them lure in numerous victims.

If you make a decision based on their appearance and offerings alone, you could end up getting trapped. Therefore, assessing their offerings can help you know if the brokerage you are considering is genuine or fraudulent.

It is best to opt for this method in the case of Coinsbitx as well that claims to be a CFD provider, offering its clients access to the popular crypto market.

Digital assets will often draw people’s attention and this is exactly what Coinsbitx is counting on, so you have to be cautious. Is it genuine, or just another fraud? You can find out after assessing its offerings.

Licensing and regulation

When you have to assess a broker’s offerings, you should begin with its licensing and regulation because a company with a license can be trusted. It is the biggest sign that you are dealing with a genuine broker because obtaining a license is not a simple process.

Regulatory authorities, depending on jurisdiction, can have complex requirements and procedures that only authentic platforms will be able to fulfill. In return, they are able to build their credibility and provide top-notch services to their clients.

However, you should remember that just because a brokerage is claiming to have a license is not good enough. You have to check and ensure it really does so.

Where does Coinsbitx come in? A look at its website shows that it claims to be owned and operated by a company named Coinsbitx.com Finance LLP that is registered and complying with the laws applicable in the United States.

The issue here is that the name of the company is strange and has actually been used by other scam brokers as well, with only the first name changed.

This indicates that Coinsbitx could actually be part of a serial scam, with fraudsters operating multiple fake websites that share the same features to trap people.

If you need proof, all you have to do is check the online register of the National Futures Association (NFA) and the Commodity Futures Trading Commission (CFTC), which are the two regulatory bodies that oversee the markets in the United States.

You will not find the name of the parent company of Coinsbitx, or the broker itself and this proves it is not a genuine firm.

In addition, it is also going against the regulatory framework of the US when it comes to leverage and this is further proof that Coinsbitx is a fraudulent platform.

Trading platform

Assessing the trading platform given by a broker is a must because it has to be used primarily for trading, so it needs to have all the necessary feature. You will discover a web based platform at Coinsbitx that does not even come close to the industry leading and professional trading platforms like the MT4, or the MT5.

The web trading platform that Coinsbitx has put together is a far cry from these advanced solutions because it offers you the bare minimum and the only reason it has been made available is to allow the brokerage to carry on with its ruse and nothing more.

Trading conditions

The trading conditions that you discover at Coinsbitx are downright laughable because no legitimate brokerage would offer you such conditions. This is because they make the company completely uncompetitive and make it evident that it is up to no good.

The spreads that are offered at Coinsbitx are 3.5% of the price of the asset, which can get extremely high. Most authentic brokerages would offer you very tight spreads.

As for the leverage ratios, Coinsbitx is offering you leverage of about 1:100, even though the CFTC and NFA have imposed a limit of 1:50. This shows that it is a fraud because it is not following regulatory requirements.

Deposit methods

Last, but not the least, the deposit methods that you come across at Coinsbitx are the final nail in the coffin because you learn that it only supports crypto deposits.

These are a top favorite of scammers because they are final and do not give you the option of filing for a chargeback, which you can do with credit cards and some other options. Moreover, crypto payments are also anonymous, and this is exactly what scammers are looking for because it helps them get away with your money.

The Verdict

Taking into account the terrible package that Coinsbitx is offering, you can conclude that it is a fraudulent brokerage and it is best to not choose it for your trading journey.