Coinfinex review discussing broker’s features in details
Coinfinex markets itself as a cryptocurrency broker. The first impression one can get from the website is that Coinfinex is a cryptocurrency exchange and you can purchase and sell different crypto on the platform. It can get really confusing, especially for beginner investors. In reality, the broker does not offer to buy and sell cryptocurrencies, instead, it offers CFDs on various cryptos. As it seems, the broker is trying to confuse visitors deliberately and hence does not mention that “crypto trading” with the broker is trading with CFDs on cryptocurrencies. It is suspicious and showcases the possibility of Coinfinex fraud. This review will provide insight into the broker’s features, regulations and service to see if the broker is legit or not.
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 Coinfinex.com review, we found the 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 the trading services to the worldwide audience, except the residents of the United States. According to the website, the main target of the company is the traders from the English speaking countries, and traders from Arabic countries, since English and Arabic are 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 from 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.
Minimum deposit, leverage, and spreads
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 the beginners and 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.
Once the trader opens an account he or she can choose cryptocurrency pairs from the wide selection of trading instruments. They pairs mostly include UST (Tether), such pairs can be traded with the leverage 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.
Coinfinex withdrawal policy
Another thing that reduces Coinfinex 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 is always a plus. If the broker does not display information about withdrawal, it means that conditions do not look very good.
Coinfinex trading accounts
The trading accounts are not designed well. The broker offers three trading accounts for – 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 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.
Is Coinfinex legit?
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 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 cost and find a legit broker that is reliable and has good trading conditions.