Coinfinex positions itself as a cryptocurrency broker, but upon visiting their website, one might mistakenly perceive it as a cryptocurrency exchange, where one can directly buy and sell different cryptocurrencies. This can be particularly bewildering for novice investors. However, the reality is that Coinfinex does not facilitate the actual buying and selling of cryptocurrencies. Instead, it offers Contracts for Difference (CFDs) based on various cryptocurrencies. It appears that the broker intentionally seeks to create confusion among visitors by omitting the fact that “crypto trading” with Coinfinex entails trading CFDs on cryptocurrencies. Such a deliberate approach raises suspicions and raises concerns about the possibility of fraudulent practices by Coinfinex.
This review aims to shed light on the broker’s features, regulations, and services, ultimately providing valuable insights into whether Coinfinex can be considered a legitimate and trustworthy broker or not.
The previous version of the webpage, as depicted in the picture above, was significantly more helpful, providing a menu where users could easily access essential information about the broker’s features. However, the new website is strikingly devoid of any crucial data and exudes an unprofessional appearance. It appears that the broker deliberately avoids disclosing important information that traders require to make informed decisions, thereby generating doubts about their legitimacy. This is a major red flag that warrants serious consideration.
The safety and security of CoinFinex
While checking the website of the broker, we were unable to see the information about the company that operates the brokerage, where it is registered or regulated. Usually, brokers provide this information at the end of the front page. Unfortunately, Coinfinex does not have these details displayed on the website. However, while making the Coinfinex.com review, we found pieces of information in different legal documents. According to those, Coinfinex is operated by 21 Tech Ltd. The company is registered in Sofia, Bulgaria but does not have authorization by the local regulator.
Even though the broker does not have any license, it still provides with trading services to a worldwide audience, except the residents of the United States. According to the website, the main target of the company is traders from English-speaking countries, and traders from Arabic countries, since English and Arabic are the only two available languages on the website.
That the broker might be leading some kind of Coinfinex scam scheme is visible from the website and the content that is placed there. For example, the information about the broker states that first, the company was operating another brokerage. They have been on the market since 2011 and then in 2017 launched Coinfinex as they saw increased interest in crypto trading. However, there is no information about that brokerage or any other details. It could mean that it is a false story that is intended to create a good brand image for the broker and make it look more trustworthy.
Fees and spreads of CoinFinex
Once the trader opens an account he or she can choose cryptocurrency pairs from the wide selection of trading instruments. Their pairs mostly include UST (Tether), such pairs can be traded with a leverage of up to 1:2, for other pairs the leverage is 1:4. It is relatively low leverage for the CFDs on cryptocurrency.
As for the spreads, the broker claims to have 0 spreads, but they are not showcased anywhere. There are commissions for traders that vary from 4 to 6 percent depending on the trading account.
Accounts, deposits, and withdrawals of CoinFinex
Coinfinex has a very high minimum deposit. To open an account trader needs to deposit at least 500 USD. This account is generally intended for beginners and a high minimum deposit really makes it useless since none of the beginner traders want to deposit that much money for the first time. It really creates a very negative Coinfinex opinion. Many scam brokers have a high minimum deposit as they are well aware that a person might not want to deposit any more money after trading with them.
Coinfinex trading accounts
The trading accounts are not designed well. The broker offers three trading accounts – beginner, standard, and professional. The features they come with are not really impressive and the minimum deposit is very high for each of them. Let’s take a look:
The beginner account
- The minimum deposit is 500 USD
- The commission is 6 percent
- additional features include access to webinars, daily market reviews, and updates
The standard account
- The minimum deposit is 5000 USD
- The commission is 5 percent
- Additional features include access to webinars and a professional account manager
The professional account
- The minimum deposit is 25000 USD
- The commission is 4 percent
- The additional features are the same as for the standard account
As you can see there is not much difference between the account types, the difference between commissions is one percent only, and the difference between the minimum deposits is huge.
Deposits and Withdrawals
Another thing that reduces Coinfinex’s rating a lot is the withdrawal policy, more precisely the absence of it. The broker does not provide details about the withdrawal which is a big red flag. Withdrawal is one of the features that people consider when choosing a new broker. Nobody wants to go through a slow and difficult withdrawal process and wait for two weeks to cash the money out. Hence, good withdrawal conditions are always a plus. If the broker does not display information about withdrawal, it means that conditions do not look very good.
Trading assets and features of CoinFinex
Only cryptos are offered and these cryptos are offered as CFDs mainly paired with USDDT or Thether crypto. Since these instruments are CFDs it is fully possible that the broker is not a crypto exchange but a standard CFD broker focused solely on cryptos. This is another red flag as the broker does not connect the user to decentralized finance and blockchain and offers in-house CFDs instead. Another huge red flag for our readers.
Customer support and education at CoinFinex – Do they offer anything at all?
Our detection of red flags continues with this broker by not offering any support, education, or tools to clients whatsoever. Only an email address is given for contacting the broker and all other data is missing. There is no information on the website, no education, no specs, no fees, nothing at all.
Should you consider CoinFinex?
This Coinfinex review clearly shows that the broker is not the one you should trade with. There are a lot of things that make us think the broker is a scam and is leading some kind of fraud scheme. It tries to get benefits from the lucrative market of cryptocurrency trading and does not care much about its customers. It is not regulated but claims to have a trustworthy and regulated trading environment. It also tries to mislead customers into thinking that the broker is a cryptocurrency exchange. It is suspicious that the broker tries to hide information about the company that is behind Coinfinex. The trading conditions are not fully communicated on the website, probably because they are not attractive or are not developed at all. To say shortly, it would be better for all crypto traders to avoid Coinfinex at all costs and find a legit broker that is reliable and has good trading conditions.
Definitely not recommended, there are many red flags and the website is horrible.
Is CoinFinex a legitimate and good broker?
