CoinBits 2023
CoinBits is a suspicious crypto broker, even though they claim to be a forex broker. Their website is filled with filler text that seems helpful but doesn’t actually provide any helpful information. So, even though their website (coin-bits.co) looks attractive, it is quite suspicious in nature and is similar to the ones scammers use.
When I set up my account at that place, they transferred me to the client area, which was actually their trading platform. On their website, they claim to provide forex trading services but when I got to their platform, I only saw the option of trading cryptocurrencies.
In my CoinBits review, you’ll find out whether this broker is a scam or not. Let’s get started:
CoinBits License and Regulation
CoinBits doesn’t let you find out their address easily. In their ‘Contact Us’ page, they have left the ‘Address’ section empty:
Either they are very clumsy or they don’t want others to find out their true location. I found their address in the fine print of their Terms and Conditions:
As you can see, the parent company of CoinBits is Gama Solutions a St. Vincent and Grenadines based company. St. Vincent and Grenadines is an offshore region and doesn’t have any financial regulation. Brokers based in this region don’t require a license.
So, CoinBits is an unregulated and unlicensed broker.
CoinBits tries to hide its address information and has no license to operate as a crypto broker. I don’t recommend working with them.
Be wary of unlicensed and unregulated brokers. These brokers don’t follow the stringent rules and regulations of popular authorities such as the FCA or CySEC. Such brokers can use shady techniques to steal your funds or data and get away scot-free because of their unregulated nature.
How can you spot a broker who is trying to deceive you?
A broker’s credentials, registration, and job history can be reviewed using BrokerCheck, a free online tool provided by FINRA. Disputes with clients, disciplinary actions, and specific financial and criminal matters on the broker’s record are all covered in the disclosure portion of BrokerCheck.
Regulatory authorities keep a close watch on licensed brokers so they don’t act against their clients’ interests. Such authorities keep high Minimum Capital Requirements to make sure that the brokers are trustworthy and can be controlled. For example, CySEC offers €20,000 in case the broker files for insolvency. Regulators ensure that the broker keeps their operation funds separate from their clients’ trading funds as well.
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Unregulated brokers don’t provide such benefits and that’s why it’s very risky to trade with them. If you want to keep your funds and data safe from fraudsters, it’s best to avoid trading with unregulated brokers.
That’s not all, when I did a little more research, I found that CoinBits has received a warning from FCA (Financial Conduct Authority):
A warning like this from a reputed financial regulator is sufficient proof that CoinBits is a scam.
CoinBits Trading Conditions
Checking the trading conditions of a broker can help you a lot in understanding its reliability. I always recommend checking the trading conditions of the broker before signing up with them. It ensures that you don’t sign up with the wrong broker. Let’s see if CoinBits’s trading conditions are okay or not:
Trading Platform
Another indication that CoinBits is a scam is when I verified its claims about providing the MetaTrader 4 platform. When I set up my account there, I didn’t get access to the MetaTrader 4 platform nor did I find a download link.
In fact, CoinBits uses a generic web trader that doesn’t provide you with any features. You wouldn’t be able to generate any good profits while using that generic platform.
In terms of trading platforms, Metatrader is always the best. Metatrader 4 and 5 are among the most popular trading platforms in the forex industry because of the vast amount of benefits they offer. MT4 provides you with real-time and historical data, interactive charts, as well as, online quotes to help you make better trading decisions. You don’t get such facilities with other trading platforms.
CoinBits tries to deceive traders by claiming to have MetaTrader 4 as its trading platform. In reality, it has a very basic web-based trading platform.
Minimum Deposit
CoinBits doesn’t give any information on the minimum deposit required to start trading with them. When I went to their ‘Accounts’ page, I only saw a ‘Coming Soon’ message. So there’s no way to find out the minimum deposit requirement of this broker.
Generally, you shouldn’t trust brokers that have high minimum deposit requirements. It’s usually an indication that the broker is a fraudster. Because most regulated brokers keep their minimum deposit limit very low to make them accessible to a wider audience.
Shady brokers keep their minimum deposit limit high so they can steal a substantial sum of funds right away.
Leverage and Spreads
The spreads this broker offers are in fact, very tight and competitive. However, I don’t know if I can trust their spreads. In terms of leverage, this broker offers a maximum leverage of 1:400 which is too high by industry standards.
Brokers that offer very high leverage ratios, such as the one CoinBits offers, are usually scammers. FCA, the financial regulator in the UK, doesn’t allow its brokers to offer more than 1:30 leverage to their customers. They have added this restriction to ensure that clients don’t lose their funds because of recklessly high leverage ratios. A very high leverage ratio can cause you devastating losses.
Shady forex brokers keep their leverage ratios high so they can trap their clients in large piles of debt.
CoinBits Payment Methods and Charges
Transaction Methods
CoinBits claims to offer a ton of payment methods. They claim to accept various credit/debit cards including Visa, MasterCard, Delta, and Maestro. Apart from them, they claim to accept Wire Transfer and eWallets along with over XXX payment methods:
Yes, they forgot to enter a number there. However, I couldn’t verify if these payment methods actually work because when I tried to deposit funds to my account, I got a message that read “Deposit is unavailable”.
Even though the broker claims to allow traders to maintain their accounts in GBP or EUR but my account’s balance was changed to an unknown cryptocurrency called UST. I couldn’t change the currency of my account.
The minimum amount you can withdraw from your account through wire transfer is 10,000 GBP/EUR, which is a very high limit.
Fees
Although the broker’s terms and conditions state that they don’t charge any fees and commissions, the broker’s homepage says they charge a commission of $4.95 per trade. They mention a withdrawal handling and processing fee but I couldn’t find any additional information on them.
Clearly, this broker is run by some very shady people who only want the money of their clients. The website of CoinBits fails to provide any helpful information to the clients.
Is CoinBits a Scam? Yes!
It’s clear by now that CoinBits is a scam. The forex sector has many kinds of scammers. Usually, the scammers in this field focus on attracting new and inexperienced traders to their platforms through fake claims and bonus offers. They get the user to sign up on their platform and accept their fishy terms and conditions. Such brokers hide their unfair conditions in the fine print and people usually ignore them while signing up.
Then, they either use hidden fees or make excuses to take away the deposited funds from their user’s trading accounts. Having a high minimum deposit ensures that they get a substantial amount to steal from every user.
The best way to combat such scams is to do thorough research before signing up on any new broker’s website. You should check the broker’s regulation, license, address, and its reputation online. Some brokers even spend money on fake reviews to create a fake positive reputation on the internet.
CoinBits Review: Conclusion
CoinBits is an unregulated and unlicensed broker that doesn’t care about its clients. Your funds and data would be in a lot of danger with this broker. It would be best to avoid trading with them.
Be sure to share this CoinBits review with others. The more people know about this scam, the better.
