Technological progress and the internet has brought the financial markets right at our fingertips. Gone are the days when people had to go out to find a broker to begin their trading journey because now they can find them online and get started quickly. There are a plethora of companies that have been established over the years and are ready to cater to all kinds of traders, so you will not have any trouble in finding options. Choosing one of them is a much bigger challenge because not all of these brokers are same. This is elaborated in the following CoinXGlobal review.
There are brokers that have turned out to be fraudulent and fake eventually and those who signed up with them had had to suffer massive losses. It is understood that no one would willingly get scammed, but sometimes, it happens because people make mistakes. One of them is opting for a brokerage without doing your homework. You shouldn’t just trust any company with your funds and should always ensure they are genuine and reliable. The issue is that spotting a scam broker is not that simple anymore because they present themselves as authentic platforms.
You will find the same in the case of CoinXGlobal because at first glance, it appears to be a purely professional website. You will easily find their long list of credentials, which include some powerful names, such as the Australian Securities and Investment Commission (ASIC), the Cyprus Securities and Exchange Commission (CySEC) and the financial authorities in the Seychelles and the Bahamas. They have also shared their trading conditions and account types openly, which means that you have all the information you would expect from a legitimate broker.
Unfortunately, all of this is nothing but a blatant like because CoinXGlobal is not a reliable, or authentic brokerage. There are a number of aspects of the platform that make this fact apparent and these are:
No licensing and regulation
Since traders always consider the licensing and regulation of a broker before opening an account for determining its authenticity, CoinXGlobal has added some impressive names to its website. But, it is a fact that anyone can write anything on their website and it is not necessarily true. This also applies here because it appears that CoinXGlobal is actually a clone website. The broker claims to be associated with another broker, one that is renowned in the financial markets and is based in Cyprus i.e. ICMarkets.
Indeed, the broker is based in Cyprus and is also licensed by CySEC. You will find that CoinXGlobal is even using the logo and the license details of ICMarkets on its platform. They have claimed that CoinXGlobal (EU) Ltd. is the name of the subsidiary that is licensed by the Cyprus Securities and Exchange Commission and have given a license number. The problem is that this is the license number of ICMarkets and if you check their domains, you will discover that coinxglobal.com is not one of them. This makes it obvious that CoinXGlobal is lying about their license by the CySEC.
As a matter of fact, this is also applicable in the case of other licenses by the ASIC, FSA in Seychelles and in Bahamas as well. To add to it, you will find that CoinXGlobal has also been blacklisted by the Financial Conduct Authority (FCA) in the UK. This is the financial regulator for the region that gives license to brokers and has issued a warning against CoinXGlobal for illegally offering its services. This is obviously not something any legitimate platform would ever do.
Promise of Guaranteed Returns
When you go through the presentation on the CoinXGlobal website, you will find that they are offering you trading accounts to choose from. However, when you do go about signing up, you will find that they actually have ‘investment plans’ to offer and this is another warning sign that you need to pay heed to. There are four investment plans by the name of Silver, Diamond, Gold and Executive and all of these are promising you guaranteed returns on investment between the ranges of 100% and 1,400%.
But, it is a well-known fact that whenever someone promises you guaranteed returns, then it means they are trying to scam you and this is undoubtedly true for the financial markets. These markets have a reputation of being unpredictable and volatile, which gives them the ability of offering high returns in a short span of time. However, the losses can be equally high, so there is no way to guarantee anything. Your experience, skills and knowledge will not make a difference in this regard because the markets can move anytime. So, how can CoinXGlobal guarantee you returns? They cannot and this is just another way to lure people into their trap.
Furthermore, these ‘investment plans’ involve the broker doing the trading on your behalf, which is another red alert. This creates a conflict of interest because brokers operate as market makers i.e. make their money when traders lose. So, how can they help you earn returns when it would mean losses for them? This means that CoinXGlobal has full intentions of mismanaging your money to make their own profits and you will be left empty-handed at the end of the day.
No Trading Platform
If you check the offerings at CoinXGlobal, you will see that they have advertised the top three trading platforms that are available in the market. These include the MT4, the MT5 and cTrader as well. This sounds downright impressive for any broker, but the truth is quite different. When you check out their website, you will discover that there doesn’t seem to be any trading platform available at all. After you register an account, you are presented with some kind of dashboard that only gives you the option of choosing an ‘investment plan’ and making a deposit.
With payment options like bitcoin, bank wire transfers and third-party payment option Mpesa available at CoinXGlobal that don’t offer chargebacks, you can conclude that this is not a good broker at all.