Coinsbitx – Can You Trust Them?

Website URL: https://coinsbitx.com

Founded: 2022

Regulations: None

Languages: English

Deposit Methods: Cryptocurrencies

Minimum Deposit: 0.0024 BTC (~$50 as of writing this review)

Free Demo Account: No

Number of Assets: N/A

Types of Assets: Cryptocurrencies

Trading Accounts and Conditions

Coinsbitx does has not presented any information about their trading accounts. From what we can make out, this broker has two types of trading accounts – Regular and Premium. However, we do not have details about what is offered in either of these accounts.

There is only a single asset class available for trading – cryptocurrencies. While the broker does not mention any spreads, we see that the Maker and Taker fees are at 0.2% for Regular users and 0.14% for Premium Users. The broker claims to offer leverages of a maximum of 1:100 for trading in cryptocurrencies.

Coinsbitx – Advantages

There are no advantages to trading with Coinsbitx.

Coinsbitx – Disadvantages

Here are all the reasons why we would advise all traders to avoid doing business with Coinbitx:

• Unregulated Broker

Coinsbitx does not mentioned anything on their website about their regulation status. However, when you check their Terms of Use (Legal Documents), there the broker states that they are owned and operated by Coinsbitx.com Finance LLP, a company that is supposedly registered with and is operating under the laws of the US. However, the broker does not provide us with any contact details – no address in the United States, no email ID or even telephone number. The only way that you can connect with this broker is by filling in their Contact Us form on their website.

There is also contradictory information on their Privacy Policy section where the broker claims to be owned by a company called Mek Global Limited.

Here are all the red flags. First, to operate in the US, a broker needs to be registered with the CFTC (Commodity Futures Trading Commission) and they also need to be members of the NFA (National Futures Association). Coinsbitx has neither accreditation. Which means that their claim of operating within US laws is a lie.

Furthermore, since this broker has not provided any corporate details besides a (bogus) company name, we can safely say that we are dealing with an anonymous entity here. And the contradictory information about who actually owns this brokerage is also another dead giveaway of their shadiness.

All of this tells us that Coinsbitx is nothing more than a low-end scammer.

Plus500

$100

Minimum Deposit

Start Trading

Read Review

82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money

Plus500 is a FTSE 250 listed brokerage providing online trading services in CFDs, across 2,000+ securities and multiple asset classes.

 

AvaTrade

$100

Minimum Deposit

Start Trading

Read Review

The company was created as a combined effort of financial professionals and experts in web-commerce with the goal of perfecting the online experience for retail traders.

• Poor Trading Platform

Coinsbitx claims that their platform is user-friendly and is built for everyone, from pros to novices. However, when we checked the platform, we found out that it was nothing more than a basic WebTrader platform with few trading tools and functions.

The trading platform is the most important product a broker has to offer. So, if it is a shoddy software such as the one offered by Coinsbitx, then you know you are getting the short end of the deal.

• Single Trading Instrument

Brokers offer their clients a range of trading instruments to ensure that their customers have a one-stop-shop arrangement. Thus, legitimate brokers will offer their clients a range of asset types – forex, commodities, ETFs, stocks, and so on.

With Coinsbitx, the only asset that you can trade with is cryptocurrencies. And even with cryptos, this broker offers you only 30 assets to trade with. Such limited range of assets makes this broker a really bad bet – even if it were regulated.

• Very High-Risk Leverage

The trading conditions are not much to write home about. The minimum deposit of 0.0024 BTC is about $50 by current market rates, which means it is quite reasonable.

And while the broker has not mentioned spreads, the trading costs (Maker and Taker fees) are also within industry ranges.

However, the leverage this broker offers is just too risky. Cryptocurrency leverage are usually around 1:2 to 1:5. In fact, most jurisdictions do not allow brokers to offer more than that. Anything over these leverage ratios is considered illegal (especially in the US, which seems to be the country this broker is targeting). In fact, in Europe, the leverage allowed for crypto trading is just 1:2.

Therefore, a leverage of 1:100 is not only too risky, it is also illegal. Which once again proves this broker’s scam.

• Single Funding Method

Just as this broker offers only a single trading instrument, Coinsbitx offers their clients only a single funding method – cryptocurrencies. This is also another red flag that tells us that we are dealing with scammers.

We do not have anything against cryptocurrencies as a payment option – if it is being offered by a trusted broker. In fact, most regulated brokers are also beginning to offer cryptos as a payment method – it’s fast, instantaneous and easy. However, it is also anonymous and permanent. And it is these characteristics of crypto payments that scammers take advantage of.

Once you have made your payments using cryptos, there is no way you will be able to trace it or even get your money back. And that is exactly why scammers offer this as their only payment method.

This is the reason why we advise traders to use credit cards as the payment method when dealing with a new broker. In case there is an issue, there is a possibility of a chargeback with bank cards – an option not available to you if you use cryptocurrencies.

• Numerous Charges and Fees

While there are no specific details given about withdrawal fees, Coinsbitx does charge numerous other fees – all of which are rather unfair. So, you are charged a 2.5% deposit fee every time you make a deposit. You are also charged a 2.5% insurance commission. And there are many more hidden charges that we know nothing about.

Conclusion

Coinsbitx is not to be trusted and it should be avoided at all costs.

Coinsbitx

2.5

User Experience

3.0/10

Payment Options

2.7/10

Security

2.0/10

Support

2.3/10

Reputation

2.6/10

Pros

• None

Cons

• Unregulated Broker
• Poor Trading Platform
• Single Trading Instrument
• Very High-Risk Leverage
• Single Funding Method