KoinFX Trade Review
If you have just begun looking for an online broker to trade in the financial markets, you will learn quickly that there are hundreds of options to choose from. There has been a lot of traffic in the markets and this has prompted plenty of new platforms to pop up in order to cater to them. But, you have to bear in mind that quantity can never be an indicator of quality. Not every brokerage you find will be a good one and it is your responsibility to do some diligence to find what you are dealing with. This involves checking out this KoinFX Trade review.
Sure, you can just skip the process and go with the first broker that seems appropriate to you, but this leaves you vulnerable. How? It is because there are not just good quality and mediocre brokerages in the market; some of them are scammers that are only looking to exploit people. Do you really want to hand over your money to these people? Of course, this is an outcome everyone wants to avoid and the only want to accomplish this is through proper diligence. It is better to make some effort now to save yourself from regret down the road.
The goal is to not just accept the claims that a broker makes and always doing your own verification to ensure it is what it claims to be. In the case of scams, their story will fall apart when you take a closer look and this is all the warning you need to make the right decision. This is true for KoinFX Trade as well, which is one of the brokerages you will come across when you are searching for it. Its appearance does not give you any indication about its true nature, but the truth is revealed when you do some checking. What is it? Take a look below:
Blacklisted by the FCA
The regulation and license of a brokerage is the biggest proof of authenticity they can offer to their clients. A company without a proper license and regulation cannot be trusted because they are not subject to any rules and cannot be held accountable. Therefore, you should choose a broker that has a license from a regulatory authority. The problem with KoinFX Trade is that not only does it not appear to have a license, it appears to be blacklisted.
Indeed, you will discover that KoinFX Trade has been blacklisted by the FCA i.e. the Financial Conduct Authority, which is one of the most renowned regulatory authorities in the world. They have called it out for operating in the region illegally and this is all the confirmation needed that it is not a good brokerage.
Fake Incorporation Certificate from the US
One important thing to note about KoinFX Trade is that it does attempt to convince its clients that it is a genuine and legitimate broker. This is evident from the certificate of incorporation they have put up on their website. If the certificate is to be believed, the company is based in the United States. However, this certificate is not authentic at all and is a forgery.
Most importantly, even if it were true, the certificate cannot be substituted for a legitimate forex license. As a matter of fact, for KoinFX Trade to be licensed and authorized in the United States, it would have to obtain one from the Commodity Futures Trading Commission (CFTC). Moreover, it would also have to be a member of the National Futures Association (NFA). If you check the online registers of both these entities, you will not find KoinFX Trade mentioned anywhere. This means that it is not based in the US either and if it is, then it is operating illegally there as well.
Virtually anonymous website
Considering that the brokerage is operating illegally in the UK and is not registered in the US, you cannot trust the address it has mentioned on its website. Essentially, this means that KoinFX Trade is virtually anonymous and there is no way for you to verify whatever they say, making it extremely risky for you to trust anything.
Offer of Managed accounts
Another problem that you will come across on the KoinFX Trade website is that the broker offers to manage your accounts for you. They claim to have qualified professionals who are willing to offer their consulting services, which sounds like a really good offer. But, the problem is that this is a clear conflict of interest.
Brokers like KoinFX Trade are market makers by their nature, which means their profits depend on their clients’ losses. Hence, when you let them manage your accounts, they will have every incentive to mismanage them instead because your losses would mean their profits. This means that an authentic brokerage will never offer to manage your accounts for you. Therefore, this is another indication that KoinFX Trade is misleading its clients.
Unrealistic and guaranteed returns
Everyone wants to enter the financial markets for making money and KoinFX Trade attracts people to its platform with the promise of offering them high returns between 17.5% and 35%. Such profits do sound great and everyone would be ready to take on such an offer, but this is where you need to be careful.
This is because the financial markets are known for their volatility and trading leverage instruments involves a great deal of risks. Therefore, no one can guarantee any kind of returns to anyone, including KoinFX Trade. The fact that it is doing so should be considered a warning sign because they should not be making promises they cannot keep. Most importantly, brokers in most regulated jurisdictions are required to issue a warning on their website about the risks involved and they would certainly not make such promises.
When you take the problems with KoinFX Trade into account, including their lies about incorporation, it is easy to see that they are not a good broker and should not be selected for your trading needs.