TheCoinTrust Review – Reasons to Avoid the Broker

TheCoinTrust Review

Searching for a reliable and trustworthy broker is a huge challenge nowadays because the industry has undergone significant growth in the last few years. The number of companies that have been established to offer their trading services in the market has increased tenfold and scams have also become widespread, due to which caution is advised for anyone participating in these markets. You have to tread carefully if you do not want to lose your hard-earned money because these scams are very good at convincing people into trusting them, something TheCoinTrust review will disclose.

Their offerings are designed to deliberately draw people to their platform and that is how they continue to entrap people. Even savvy traders have suffered at the hands of some of these scammers because they were unable to resist their offerings, so you should learn to hold your horses when you begin looking for one. The key is to assess a brokerage carefully because this will help you in learning the truth about it. If you do not find any reasons to avoid it, you can go ahead and sign up.

However, you need to bear in mind that no company is going to highlight its own shortcomings. You should not judge it by its cover i.e. not just rely on the website of the brokerage because that is expected to be attractive and appealing. Instead, you have to take a closer look at what they are trying not to tell you because this will help you come to a conclusion. You can do the same in the case of TheCoinTrust, which is presented as one of the most innovative brokers that can be found in the market.

According to the website of TheCoinTrust, the broker has its headquarters located in Switzerland and boasts a state-of-the-art platform, which suits both professional and beginners alike. They have put together an attractive offer that can be hard to resist, but it is certainly not one that you should trust. This is because you will find plenty of reasons to avoid this brokerage and some of these are mentioned in the review below:

Reason 1: No license or regulation

The licensing and regulatory status of a brokerage is considered very important because it shows that they are a legitimate company that has met a certain criteria to provide their trading services. It also adds a layer of security for traders because they know they will be offered transparent and quality services, or else there will be accountability. As per TheCoinTrust’s website, its headquarters can be found in Switzerland and many people would find this reassuring because it is considered to be one of the well-regulated financial regions in the world.

In order to have its offices in Switzerland, TheCoinTrust would require a license from the Swiss Financial Market Supervisory Authority (FINMA). However, when you check the online register of the regulatory authority, you will not find the broker listed anywhere. In fact, the company that owns and operates the brokerage, SPT Media LLC is also not listed.

The company itself claims to be registered in Saint Vincent and the Grenadines and this does not add any credibility to TheCoinTrust because the offshore jurisdiction has become renowned for being home to numerous scam companies as their forex industry is not monitored by the SVG’s Financial Supervisory Authority (FSA). The fact that the broker is operating without a license and is not regulated is enough for you to avoid their services altogether.

Reason 2: Malicious bonus policy

When you scour through the offerings of TheCoinTrust, you will find that the brokerage claims to offer trading bonuses to its clients. This in itself is a problem because genuine and authentic brokerages do not do so and scammers are known to offer bonuses to lure people to their platform. There was a time when they were popular amongst brokers, but since they come with strings attached that were not in the best interest of traders, regulatory authorities had decided to impose a ban on them altogether.

The problem with the bonuses and their policies becomes evident when you check out TheCoinTrust’s Terms and Conditions. They indicate that the company has the right to change the terms of the bonus whenever they want. This means that if they have set minimum trading volume requirements that you have to fulfill before making withdrawal, or any other conditions, they can change them whenever they want. Essentially, you will not be permitted to make a withdrawal, which is their primary goal.

Reason 3: Lack of a good trading platform

The trading platform that an online broker offers plays a key role in your trading experience, so they should ensure that you have access to a good one. Unfortunately, you are in for disappointment because what you will find at TheCoinTrust is an oversimplified basic trading platform that has no decent trading tools or features to offer.

The MT4 and the MT5 trading platforms are the ones that are renowned in the market for their advanced features and tools and most authentic brokers offer one of these to their clients. However, the same does not apply to TheCoinTrust because they offer a web-based platform, which is quite common amongst scam brokers.

Reason 4: No trading conditions mentioned

Another good reason for you to avoid signing up with TheCoinTrust is the fact that they do not mention their trading conditions. There is no demo account available, which means that you cannot check the conditions yourself. You would have to sign up and create an actual account to find the trading conditions and this is a big risk. You obviously do not want to do that because these trading conditions have a direct impact on the level of profits you make, so you need to know what they are. Good and professional brokers are always transparent about their conditions, but this does not apply here.

Ending Thoughts

Due to these reasons, it is better for traders to avoid using TheCoinTrust as their broker in the financial markets.