CoinAdmirals Review – Know the Problems

CoinAdmirals Review

Have you taken an interest in the cryptocurrency market? Considering the havoc digital currencies appear to be wreaking, it is no longer a surprise that people all over the globe have become curious about them and their potential. Who hasn’t heard the stories of people making massive fortunes during bull-runs in the crypto market? People have made millions overnight and this has driven millions of people into this space. This means the demand for brokerages offering access to crypto CFDs and their ilk has reached an all-time high. But, this does not mean that all brokerages are created equal, as this CoinAdmirals review will prove.

You should bear in mind that while cryptocurrencies have undoubtedly become renowned for their lucrative and volatile nature and are quite profitable, they also come with more than their fair share of risks. Since the space is mostly unregulated, there has been a huge number of fraudulent platforms and schemes popping up left and right. Hence, you can find countless stories of people losing their money to these frauds as well and you do not want to become the next statistic. When you decide to delve into this space, you need to be patient and cautious.

Most people get so tempted by the offerings that they throw caution to the winds and sign up in order to start taking advantage of the opportunities available. But, if you make a mistake and end up on the wrong platform, all your goals are going to go down the drain and you will be left high and dry. These are consequences you want to steer clear of and the only way is to know a broker thoroughly. This helps you know the problems they have and decide whether they can be handled, or are a deal-breaker. Indeed, there are some issues that make it evident that you are dealing with an impostor that should be avoided.

In which camp does CoinAdmirals fall in? The brokerage claims to have its headquarters located in both London and Zurich and advertises a trading volume of more than 1.88 billion USD. Moreover, it claims to have received numerous awards for providing top-notch trading services with classic as well as crypto CFDs to people all over the globe. All of the details come off as quite convincing, until you look close and that is when you begin unearthing the problems. Let’s go over some of them below:

Lack of a license

Most jurisdictions around the globe require online brokers to have a license to provide their trading services to people. This means that depending on where companies have their offices, they have to obtain a license from the regulatory body of the respective region and then begin operating. Such platforms can offer a great deal of security and peace of mind to traders because there is transparency, certain standard of service and accountability. Does CoinAdmirals have a license?

This is the first thing you need to know about the brokerage and as mentioned above, CoinAdmirals claims to have its offices in both Switzerland and the United Kingdom. Both of these jurisdictions are some of the world’s most regulated ones and have tough policies and standards when it comes to trading. According to CoinAdmirals, it is owned and operated by a company named CoinAdmirals Trading Services LLC.

It should have a license from the Financial Conduct Authority (FCA) in the United Kingdom and the Swiss Financial Market Supervisory Authority (FINMA) in Zurich. But, when you check their online registers for CoinAdmirals and its parent company, you will not find any of them listed. This means that the brokerage cannot be based in either of these jurisdictions, as it does not have a license to offer its services.

Furthermore, the fact that crypto CFDs are banned by the FCA in the UK is also reason enough to believe that CoinAdmirals does not have an office in London. Digging into the parent company of the brokerage shows that it is actually registered in Saint Vincent and the Grenadines. This is an offshore zone that has become a breeding ground for scammers because the Financial Services Authority (FSA) of SVG has stated that they do not oversee the forex industry.

Availability of trading bonuses

The second problem that you will come across at CoinAdmirals is that it is offering trading bonuses to its clients, which appear to be quite generous, as they are between 30% and 150%. The bonuses depend on the account you decide to open with a brokerage. First off, you should note that trading bonuses, regardless of how lucrative they may be, are banned in multiple jurisdictions. This was done due to their exploitative nature, since they came with strings attached.

These jurisdictions where they have been banned include the EU and the UK, which means that CoinAdmirals should not be offering these trading bonuses at all. After all, it has claimed to be based in these regions. The bonuses are likely to have conditions designed to prevent withdrawals, which show that this is not a brokerage to be trusted.

Excessive minimum deposit

In order to open the most basic account at CoinAdmirals, you are asked to deposit a minimum of 500 USD. This might not seem like a big amount, but you should note that most brokers are now permitting their clients to open their accounts with as low as $10. Even if the standard practice is followed, the average minimum deposit does not go higher than $200 to $250 and the company is asking for twice that. This should certainly be considered a problem because the goal of the platform is to get as much money as possible and then prevent you from withdrawing it.

No trading conditions disclosed

You will not find any trading conditions mentioned on the CoinAdmirals website and this is also not standard of professional brokers. They are usually transparent about their conditions, but this one does not seem to follow that route.

Final Thoughts

These problems with CoinAdmirals make it clear that you are not dealing with a remotely trustworthy brokerage and it should be avoided.