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CoinBrokerz Review: Unregulated and a Scam

CoinBrokerz Review: Unregulated and a Scam

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At first sight, you will think that CoinBrokerz is a Crypto currency exchange. However, upon closer inspection, you will quickly realize that it is a brokerage offering Crypto currency CFDs, and this is a big problem because the broker is not even regulated and authorized to provide this asset. It should be noted that there is a big difference between buying a Crypto currency and betting on the value of that Crypto currency through CFDs. The former is not regulated but the latter is regulated and brokers who offer Crypto currencies trading in CFDs must be regulated. There is no exception.

CoinBrokerz appears to offer one trading account as opposed to variety of accounts that meet the different needs of their traders. This account is called ”standard” and the minimum deposit required to run this trading account is $500. Leverage and spreads have not been disclosed, and so we do not know what trading conditions look like in this account.

CoinBrokerz offers trading in all major coins which include Cardio,  Bitcoin,  Bitcoin Cash,  Bitcoin Gold, Ethereum,  Ethereum Classic, Dash, Litecoin, Monero, NEO, Qtum, TRON, Stellar, Ripple, Zcash, IOTA and EOS. However, they are not offering trading in Forex pairs. So if you are looking for a reliable Forex broker that offers pairs in Forex, you might want to check this list first. 

CoinBrokerz Review

We have tested their spreads for the BTCUSD pair and found it to be 30 USD. This is in line with the industry’s average. Generally, no broker should go beyond the $50 mark. Apart from this, the brokerage supports a wide range of payment methods which include Visa, MasterCard, American Express and also e wallets such as Skrill.

In addition to these payment methods, traders who want to fund their accounts through bank wire can do so because the broker supports this mode of payment as well. In terms of payment methods, this broker offers a variety and one should not complain about not being able to find a convenient way to pay or request payouts in.

Not a regulated broker

Qossla Holdings Limited is the company behind CoinBrokerz. This company is a subsidiary of Bitcom Limited, which is registered on the St. Vincent and the Grenadines island. The story is always the same. This company does not hold any license to offer trading in any form of CFDs. But as you can see, CoinBrokerz is still offering trading in these assets anyway.

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Coinbrokerz

The FSA (Financial Services Authority of St. Vincent and the Grenadines) recently stated that it does no issue any licenses to brokerage or trading activities in binary options and neither does it regulate international companies that issue such products to their customers. In addition to this, the FCA recently warned investors against trading with Coinbrokerz. The regulator warned that traders may be sending funds to an investment scam which may end up stealing their monies.

By the way, you should never trade with brokers that are not regulated. Here, we prefer those that are regulated with reliable and well known financial regulators in the UK (FCA), the Cyprus Securities and Exchange Commission (CySEC) and also the Australian Securities and Investment commission (ASIC) because these entities insist on strict and ethical conduct of brokers.

One of the requirements that these financial regulators have put in place to protect traders is that these brokers must maintain separate accounts (segregated accounts) where their clients funds will be held. This account must not be the same as a creditors account. In addition to this, they must maintain a certain level of operational capital at all times. In some cases, these regulators even insist that traders must have some sort of insurance and the brokerage in question must adhere to these requirements if they want to operate within the legal confinements of the law.

Now, obviously a broker like Coinbrokerz cannot meet those requirements because they have a fishy intent. They are here for a short period of time before exiting the market in the most unceremonious of ways. Coinbrokerz is therefore a highly risky broker to trade with.

If you want to trade with regulated brokers who adhere to these requirements, pick any of the brokers in this list. 

The minimum deposit required by this broker is high

This broker requires a minimum of $500 which is just too high especially when we consider that this broker is also unregulated. How sure can we be that this broker won’t snatch our money and deny us our rights if they are not abiding by any regulator’s requirements?

There are many good and regulated brokers who offer an opportunity to trade on their platform for a reasonable minimum deposit. You could even start trading with as little as $50 if you are a newbie.

So it makes no sense for this broker to restrict traders to paying $500.

CoinBrokerz has no MT4

This brokerage offers nothing close to the popular MT4 platform that we all know of. Most traders want to use the popular MT4 because it is rich in features such as charting solutions, automated trading tools and many more.

So when a broker does not support this product, they are losing it. By the way, that platform resembles that which was used in binary options trading. This is a web based platform.

There is no automated trading here and definitely no indicators. You cannot succeed in this kind of trading environment and so you should know that your 500 USD will end up going down the drains.

Our best advice for you

Despite Coinbrokerz offering a wide range of coins for trading on their platform, Coinbrokerz fails us in terms of regulatory requirements which they have refused to adhere to. They have been labeled as a potential scam. Therefore, the best thing to do is to avoid this broker at all cost. Even reviews suggest that they are robbing traders of their hard earned money. In case you want a broker that is regulated, our advice is that you should go for these ones.

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2 Replies to “CoinBrokerz Review: Unregulated and a Scam”

  1. Adress Coinbrokerz USA
    https://www.simplywhois.com/whois/coinbrokerz.com
    Domain Name: coinbrokerz.com
    Registry Domain ID: 2187889609_DOMAIN_COM-VRSN
    Registrar WHOIS Server: whois.godaddy.com
    Registrar URL: http://www.godaddy.com
    Updated Date: 2017-11-16T12:42:43Z
    Creation Date: 2017-11-16T12:42:43Z
    Registrant Street: 14455 N. Hayden Road
    Registrant City: Scottsdale
    Registrant State/Province: Arizona
    Registrant Postal Code: 85260
    Registrant Country: US

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