Beware! CoinDaq 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.
CoinDaq comes with a very average website that screams mediocrity, and an interface that is not better off. There is always something unsettling about such websites because you just know that there is something wrong with it. There have been many previous instances where we have encountered similar firms like CoinDaq, and very few of these were more than scams! Please read the review before doing something that you will regret.
The account opening section did not exist or was broken. For some reason, it just did not produce a sign up form.
We have a probable explanation as to why that is. Many shady brokers hide their registration forms and reveal them only to those investors they feel are most likely to deposit. This scheme is explained in the last two sections of the review. The other possible explanation is that the registration page really is unavailable.
Without a registration we had no way to access a user area, which in turn means that there was no way to verify the trading grounds. We also cannot verify if there is a trading platform. According to the account sub page of the website, the user can choose between 6 account types. The leverage is maxed out at a surprisingly low value of 1:40.
Interestingly though, even without opening an account, we were still able to access a trading platform, where it turned out that CoinDaq had entrusted its services to a seemingly proprietary platform, that nonetheless looked quite suspicious. There we found out that users can only trade with cryptocurrencies.
The website of the company is available only in English.
COINDAQ REGULATION AND SAFETY OF FUNDS
The only concrete information concerning a regulation or similar is an alleged registration in the Commonwealth of Dominica. And this isn’t saying much.
The Commonwealth of Dominica is a nation where FX trading is not regulated for the simple reason that there is no FX watchdog. So, brokers can easily register their firm there but are not licensed to provide legit services.
And so our suspicious are confirmed. CoinDaq is UNLICENSED, and therefore a risk to any investment.
There is no reason at all to invest in an unregulated broker. The best advice there is, concerning the choice of a broker, is to always check for a license. If the broker has an FCA and CySEC license you are off to possibly the best start, as these are some of the top regulators in the industry. Usually, legitimate FX overseers integrate a set of rules to each of its listed brokers. Brokers form an agreement with them to follow very strict guidelines. Furthermore, some agencies, like the FCA or CySEC, have compensation schemes that reimburse clients whose brokers have become insolvent. As you can see, a regulated broker benefits not only the brokerage itself, but the traders as well.
COINDAQ DEPOSIT/WITHDRAW METHODS AND FEES
The account page on the website claims that the most basic account type is opened after a $250 deposit. However, we had no way to make sure this was the actual minimum deposit. Deposits are made through bank transfer, credit cards, and debit cards if we are to trust the legal documents. Again, this information was unavailable to be verified.
The minimum withdrawal is said to be $10 if made through a card, and $30 if made via wire transfer.
There are some mentions of fees here and there throughout the legal documents. These are the ones attached to withdrawals: a withdrawal between $1000 and $4999 is burdened by a $50 fee; a withdrawal amount between $5000 and or more is charged a 1% of the same or a minimum of $50; a withdrawal of $250 or less with be charged with $25; an amount between $250 and $4999 the fee for withdrawing will be $25, we assume on top of the aforementioned one; for an account that has profited from trading will be subjected to a $25 commissions.
There are further fees and taxes in the legal documents that cover very illicit broker-like conditions. However, users should not be intimidated by these because they should not have invested in the first place. The brokerage is unregulated and is therefore not advisable to deposit in it.
How does the scam work?
If things feel uneasy or suspicious, then you are probably being scammed. Most fraudsters adapt the same scam structure, however, they might add their own little nuances. The point is, that if you think you are in a scam, then you probably are!
The first step is the online ads. These annoying pop-ups or side distractors are the essence of scammer brokers. It’s through them that the user is lured into the fake broker website. The link of the ad leads to a website or a registration form. Both require the user to write down his or her personal details, like email and telephone number. Do not give these away. The scammers will contact you if you give these details away, and will sooner or later try to charm his/her way into your wallet, by asking you to deposit.
After a deposit is made, and hopefully it isn’t, then the first step of the same is complete. The following step concerns the account manager, a.k.a the advanced scammers. These individuals are charming convincers, and if they succeed, it means that you have deposited a second time. This can go as long as the user keeps depositing. When suspicious arises, one of these things will probably happen: the broker will delete the account of the user without a reason; the broker will not allow for withdrawals, or the broker will keep finding ways to stall withdrawals.
What to do if scammed?
Filing for a chargeback is the best advice. VISA and MasterCard have prolonged their chargeback time span to 540 days.
If the deposit is made through wire transfer, then change your user name and password as soon as possible. Another step is to contact the bak as they might have a specialized procedure for such cases.
Another crucial advice: NEVER deposit in unregulated brokers through bitcoin or any other form of cryptocurrency. These payment methods are untraceable, meaning that once a deposit is made, it cannot be traced. The money is lost.
Last but not least. recovery agencies are definitely a scam. These programs, or whatever they call themselves, offer help for defrauded users…for a price. Once the fee/tax is collected, these agents disappear, leaving you at a bigger loss.
Rich Snippet Data