Can Coinfinex be trusted? This detailed review will show you
Since the cryptocurrency trading became so popular, a lot of brokerages decided to gain benefits from the lucrative market. However, not many of them can offer service for purchasing and selling cryptocurrencies and are offering CFDs of cryptocurrencies instead. Of course, there is nothing wrong with CFDs trading, however, many brokers try to mislead customers into thinking they can trade cryptocurrency when in reality they offer CFDs only. This is the case with Coinfinex as well. The broker markets itself as a crypto broker and you cannot find mention of CFD products on the website which makes us think about Coinfinex fraud.
The broker offers a wide selection of CFDs on cryptocurrencies that can be traded on the custom made platform. Traders can use leverage up to 1:2, or 1:4 depending on the trading instruments. The Coinfinex trading account can be opened with 500 USD minimum deposit. Check the detailed review to see if the broker is really a scam or not and what does it offer to the traders.
Revealing Coinfinex scam
Can Coinfinex be trusted? This is the main question to be answered. Based on the regulations, company background and the information that the broker displays on the website, the broker cannot be trusted. Let’s see all of these in details.
Coinfinex does not disclose information about the company behind the brokerage on the website. However, according to to the terms and conditions document, the company that operates Coinfinex is 21 Tech Ltd. The company is registered in Sofia, Bulgaria, but does not have a license from the local regulator. It makes Coinfinex scam more possible, as the broker is operating illegally without any authorization.
If you have been searching for Coinfinex reviews on the internet, you could come across to ones saying that the company behind the broker is 21 Wolfs Ltd. As of today, this name is not mentioned on the website or in legal documents. It is possible that the company rebranded itself and changed its name. While it might not be the direct indication of a scam, it is never a good sign either.
The other disturbing thing about Couinfinex is that the website provides a lot of false or misleading information. The broker does not state that it offers CFDs on cryptocurrency and not cryptocurrency trading. Instead, mentions cryptocurrency trading everywhere. It even got us confused while making Coinfinex review, until we checked the terms and conditions document, which is the only place where the broker states that purchasing and selling cryptocurrencies are not possible on their platform. Apart from it, the broker claims that the company was established in 2011 and was providing various trading assets, but in 2017 the company saw that traders were interested in crypto trading mostly, and therefore launched Coinfinex. The story does not sound convincing, it looks like it is made up to make the broker seem more reliable.
At first glance, the website of the broker does not look bad. The design looks normal, navigation is also very easy. But after spending more than one minute on the website you can see that it is almost empty. The only information you can get from the website is the description of account types. There is no information about the trading platform, withdrawal policy, list of the trading instruments, page for frequently asked questions and etc. The website consists of several pages only where the information is very limited. The broker features blog which must provide educational and helpful content, however, the last post that was made on blog dates back to the 2018 year. This does not affect the Coinfinex rating in a positive way.
What does the broker offer
The broker offers three trading accounts – one for beginner traders, standard account, and professional account. They do not come with many additional features. According to the broker, all of them have zero spreads and access to webinars. The beginner account can be opened with 500 USD which is a very high minimum deposit requirement for the account that is intended for beginner traders. The standard and professional accounts can be opened with 5000 USD, and 25000 USD respectively.
On the positive note, the broker offers a wide selection of CFDs on cryptocurrencies. They are mostly paired with UST (Tether). Traders can use 1:2 leverage for the pairs with UST, and leverage up to 1:4 with the other pairs. It is not high leverage, as many brokers offer higher leverage for CFDs on cryptocurrencies.
Unfortunately, the broker does not provide any information about Coinfinex withdrawal policy. Traders are not informed how much time the broker needs to process and confirm withdrawal requests if there is any commission for withdrawals and etc. This is a big disadvantage. Traders must have detailed information about the withdrawal policy prior to opening an account with the broker. Otherwise, they might find themselves in a situation when they cannot withdraw their profits from the trading account.
Should you trade with Coinfinex?
I think there is no need to answer this question, as the review of the broker clearly shows that Coinfinex cannot be trusted. The broker makes false claims about being regulated when in fact, it does not have any license. It has set a website in a way to make traders think Coinfinex is a crypto exchange and not the CFDs broker. The broker has commissions, high minimum deposit and does not provide information about the trading conditions, which is already very disturbing. All of these features indicate that Counfinex scam can be real. If you want to trade with cryptocurrencies you need to check the information thoroughly not to end up with CFD broker, otherwise, if you want to speculate with crypto prices search for the legit broker. In any case, stay away from Coinfinex and do not put your funds under the unnecessary risk with the scam broker.