Is Coinfinex legit broker or a scam? let’s find out
Coinfinex is cryptocurrency broker that offers customers to trade with CFDs on cryptocurrencies. The way the broker does it is quite tricky, hence the broker does not mention anywhere on the website that the trading assets offered are CFDs and not real cryptocurrencies. It makes us think that the broker tries to confuse visitors of the website purposely and make them think that they can buy and sell crypto with Coinfinex. So let’s put it straight from the beginning, traders cannot trade with real cryptocurrencies with the broker but can only speculate with the prices of it. Can Coinfix be trusted since it is deliberately confusing investors? Probably not. Check this detailed review to see if the broker is legit and trustworthy or a real scam.
Is Coinfinex legit?
The broker does provide much information about itself. The “About us” page states, that the brokerage has been operating since 2011 and was providing various trading instruments to the traders, however, the company decided to focus more on cryptocurrencies and launched Coinfinex. The brokerage that the company was operating before Coinfinex is not stated. It could mean that there was no such brokerage, and Coinfinex simply wants to seem more experienced, legit, and trustworthy with this false story. A lie like this decreases Coinfinex rating significantly, but it is not the only thing that concerns us.
You cannot find the information about the company behind Coinfinex on the website as there is no mention of it. Very limited information can be found in legal documentation. For example, the terms and conditions document states that the contract is between the customer and 21 Tech Ltd. In the other document, it states that “Company” means the company name which is incorporated in Bulgaria. So the company that runs Coinfinex is 21 Tech Ltd, located in Banishora, block 16A, app. 33, 1233, Sofia, Bulgaria. The broker does not say anything about the regulations, but since it is registered in Sofia, it must be regulated by the Financial Supervision Commission of Bulgaria. We have checked the website of the regulator and unsurprisingly did not found Coinfinex in the list of regulated entities.
Some Coinfinex reviews suggest that the name of the company is 21 Wolfs Ltd, however, this name is not mentioned anywhere on the website now. It could be the case that the company has changed its name, which is also very suspicious. Overall, we can confidently say that the broker is not legit.
Trading conditions with Coinfinex
Once you know the broker is not legit, it does not matter what kind of service is showcased and offered on its website, however, let us take a look at what the broker offers to its customers. It is not easy to get information about the trading conditions since the information about them is very limited. One can say that the broker’s website is simply just a frontpage and apart from it, there is nothing much to be seen. While the website does not say anything about Coinfinex being a CFD broker, in terms and conditions it is mentioned that “the website does not facilitate the purchase or sale of cryptocurrencies.”
The broker offers CFDs on a lot of cryptocurrencies that can be traded with the leverage up to 1:4. With Coinfinex one can trade the major cryptocurrencies such as BTC, ETH, LTC, XRP, and many others that are mostly paired with UST. the leverage for UST pairs is limited to 1:2.
The minimum deposit required to trade with Coinfinex is 500 USD which creates a very negative Coinfinex opinion. The minimum deposit requirement is very high and makes impossible for the low budget and beginner investors to start trading with the broker.
Coinfinex account types
Coinfinex offers three types of trading accounts – Beginner, Standard, and professionals. Let’s take a look at each of them.
- The beginner account – traders need to deposit 500 USD to open this account, which means it is not really for beginner traders as none of them want to deposit that much money when they are just starting trading. The account comes with 0 spreads and 6 percent commissions on traders. The traders can also have access to webinars and daily market updates and reviews.
- The standard account – it starts from 5000 USD. The spreads are from 0 and commission is 5 percent. The account comes with access to webinars and professional Account Manager.
- The professional account – This account starts with 25000 USD and has 4 percent commissions.
As you can see Coinfinex crypto broker’s accounts are not really good for the beginner traders. Many other brokers have better services and lower minimum deposit requirements.
Coinfinex withdrawal policy
The Coinfinex withdrawal policy is not explained on the website. There is no information about how much time does it take to process the withdrawal request, how much is a commission, and how many business days does it take to receive funds.
Coinfinex is not a legit broker as it does not have any regulations. It is also a very shady broker since it tries to hide information about the company behind the broker. Coinfinex tries to mislead investors into thinking that the broker offers trading cryptocurrencies and not CFDs on cryptocurrencies. Hence, it is not advisable to trade with the broker that is shady and lies to its potential customers. Apart from it, trading conditions are not very good as well. The broker has high minimum deposit requirements and does not disclose information about how zero spreads really look like, what is withdrawal policy and etc. Based on the review, we can say that Coinfinex fraud or scam is very possible and traders should not open an account with the broker.