Beware! QoinCapital is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
QoinCapital lead us to believe that the name CoinCapital has been taken. Just by the name of this broker we can gather a lot of information that will influence our review and our personal opinion of the firm. There is definitely something wrong with this broker, and we are here to discover what it is.
The registration was problematic. First of all, most of the links to a registration page were broker. Next, once we found a working one, the captcha was broker, and so we had no way of finalizing our sign in process. In the end, we did not sign up, which means that all trading and payment information will be taken from the website, an unreliable source.
However, the website turned to be an utter broker mess that was half of the time missing. When we clicked on important links it just refreshes the Home page. So, we cannot give you any spread, trading instruments, and a leverage. Do not worry, for this broker is not worth it!
The website is available in English, Italian, and German.
QOINCAPITAL REGULATION AND SAFETY OF FUNDS
The Terms and Conditions end with an odd inclusion which claims that the broker functions under the laws of Montenegro, a country in Eastern Europe. This is the last place that we associate with FX trading… Usually, the Montenegrin Capital Market Authority should be the regulating entity for FX markets, yet things are incredibly ambiguous, and as result we conclude that QoinCapital is not regulate there. And what’ smore is that the broker never claims to be licensed there!
Furthermore, as we shall see, this broker will turn out to be more fraudulent than what we first presumed.
There’s more. What we can say about the legal situation with the broker is that all users should check first if their are eligible to use it in their own jurisdiction. The is a common spin of the unregulated trope; illicit brokers attempt to put the load onto its user, and make them think that it is their responsibility to be eligible and not the brokerage.
This clause reveals that QoinCapital HAS NO REGULATION at all! Therefore, the so called broker is a risk to all investments!
Traders should be trading with risk-free brokers, that hold licensed from renowned and austere agencies, like the FCA or CySec , which have made a name for themselves as some of the top regulators. Readers should be aware that both agencies have adapted very strict rules of conduct, and their licensing framework guarantees safety and security for all clientele. A good example of this is the segregation of accounts which assures that client money and broker money are kept in separate accounts. Furthermore, FCA/CySEC brokers participate in a financial reimbursement scheme that cover traders losses in case the broker becomes insolvent. The FCA provides up to 85 000 pounds per person, while CySEC guarantees up to 20 000 euros.
QOINCAPITAL TRADING SOFTWARE
As far as we are concerned, there is no trading platform here. The company alleges an MT4, yet there is zero proof that this software is actually available. This is mainly because we were unable to register.
So far things, are not looking good for QoinCapital. Without the trading platform QoinCapital cannot be defined as a broker at all!
QOINCAPITAL DEPOSIT/WITHDRAW METHODS AND FEES
The minimum deposit seems to be $2500, and this is for the most basic of accounts! Payment methods are supposed to be credit cards, debit cards, wire transfer, Skrill, Neteller, FasaPay, and vLoad. However, we do not trust this info as it was taken from the website of an illicit entity!
According to the Terms and Conditions, the minimum withdrawal is $100, and should be processed within 7 business days. The fee for withdrawing is 0.5%, with a minimum of $30. If the percentage is lower than 30$, the user will be charged with 30$. There may be other withdrawal fees and similar charges, so please stay on your guard.
The renewal fee, that is usually applied to all brokers, has taken a twisted turn at QoinCapital. Here, the broker can directly debit your credit card, an action that is absolutely a fraudster more. The company may only charge a user’s account!
All profits made via leverage or bonus leverage will have to be turned over 600 000*deposit amount. This is absolutely ridiculous. And furthermore, it is not clarified if by “leverage” QoinCapital means all non bonus sums as well…
The dormant account fee amount to $30, or 1%, of the user account funds. If a client has had no active trades for 91 days, she will be issued said fee.
The epitome of the unregulated brokerage firms can be reached by only a couple of ridiculous practices. Undoubtedly, one of them is the following Non-Deposited Funds clause. In true scammer brokerage style, all profits cannot be withdrawn; it’s as simple and as controversial as that.
Limits and volumes may be imposed to a user’s profile. We have no idea what form these limitation will take, and we do not recommend users sticking long enough to find out.
Not only can the frim close down your account at any time for whatever reason, but it can also treat all your information, personal at that, as non-confidential and not-proprietary. Essentially, QoinCapital can use your personal information as its own, thus sharing it or/and manipulating it.
The following is one of many indemnification clauses that gives the broker total freedom. It limits its liability, thus keeping it harmless from any legal claims issued by users.
All these provisions work against QoinCapital. With their inclusion, QoinCapital has definitely earned its status as an unregulated entity and a scam. All investments will be lost!
How does the scam work?
Users will be in the middle of a scam without even knowing it, that’s how efficient these scams are. Yet, clients will also be surprised that the most utilized scammer structure is laughably easy to grasp, making it predictable. We have dedicated the following section to the reveal of how the scam works.
The internet is filled with ads, it’s the fuel of the industry, and a big chunk of said advertisements are misleading and some are downright deceitful. The ads concerned with unregulated forex brokers are often very promising, and most of the times utilize completely false claims of immediate profit. Those tempted enough will be redirected to a robo-scam website that further guarantees profits. The only thing that separates the user from the unrealistic promises is a fast registration process that requires a phone number and an email address. After inputting this info unsuspecting users will start getting phone calls from illicit broker representatives, whose one and only job is to initialize the scheme by pushing a trader to make that first deposit of around $250. After that’s done, the senior representatives will be calling. These expert scammers are extremely good talkers, and will start working on you to start putting even more money in. They say that the more money invested, the higher the profit will be. At this point most traders start seeing the big picture, and will want to withdrawal their money and get out fast.
However, the scammers have anticipated this development, and are ready to counter any withdrawal request. Typically they find excuses for delaying the request in the legal documents that hold specific clauses for these purposes. The reasons are many. One thing to remember is that all illicit brokerage firms will deny the withdrawal request for as long as they can, because of the imposed time limit traders have for filling a chargeback. Once the crucial due date is not met, any chargeback requests will be denied.
What to do if scammed?
Those of you who deposited using VISA and MasterCard will be glad to know that both companies have extended their chargeback time span to 540 days, especially if the reason for it is an online scam.
Scammers will steal directly from a bank account, if the traders has provided crucial details, like banking password or security code. If it get down to this, be sure to either block the account or change the password.
Sometime victimized users will stumble upon the so called recovery agents that promises to magically reclaim all lost investments, for a fee that is. Needless to say, they will not get back any of the lost funds, and will basically scam you a second time.