Coinfloor Review – is it scam or safe?

Coinfloor Review – is it scam or safe? explained by professional Forex trading experts the “ForexSQ” FX trading team.

Coinfloor Review – is it scam or safe?

 

Coinfloor is one of the major players in the UK cryptocurrency space. The company allows relatively easy access to Bitcoin, with trading directly against GBP. This makes them a rival to CryptoMate, although a few specifics of their trading conditions make them not that beginner friendly.

The company, security of funds

Coinfloor is based in London, but given the nature of its service, the company is not under the regulatory zeal of the Financial Conduct Authority (FCA). The company states it “maintains communication with the UK’s Financial Conduct Authority (FCA) and the European Commission”, but we can’t be sure what this communication exactly entails.

Those of you who follow our other forex reviews probably know the benefits of trading with an FCA-regulated broker. This is a highly reputable agency which monitors the financial services sector in Britain, but is yet to take definitive action in the crypto-space.

That being said, with the 100% cold storage policy, Coinfloor is one of the safest exchanges around. It is not surprising that they haven’t experienced a major hack yet, unlike Biitfinex.

The user reviews on Coinfloor are mostly negative. While some clients enjoy the simplicity offered by them as well as the UK focus, there are multiple complaints featuring various themes.

The company apparently sends blockchain transfers rarely. This means that if you buy Bitcoin and you wish to send it to an external wallet or another exchange, you may be waiting (a lot according to some users). Customer support is also allegedly non-responsive and the account verification process is not that smooth. We had our own experience with the latter.

When trying to register an account for the purposes of this review, we were unable to pass the initial verification process. We only input the name and address details of one of our editors and the account was suspended. This happen before taking a picture of an ID or a selfy, which are common security requirements. This left us befouled.

Trading conditions

Trading instruments (cryptocurrencies)

Coinfloor offers trading (fiat) currencies against a few coins. The main volume and liquidity is concentrated in Bitcoin trading against the British pound. The full list of trading instruments includes XBT/GBP, XBT/EUR, XBT/USD, BCH/GBP, ETH/GBP, ETC/GBP, XRP/GBP, LTC/GBP.

Minimum initial deposit

Coinfloor has set a minimum fiat currency deposit of GBP/EUR/USD 1000. This is very unusual for a crypto-exchange, as a lot of people prefer to try things out with a smaller investment. Additionally a 0.0050 XBT minimum level is applied for blockchain transfers

As you may know we mostly cover forex brokers (some of which do offer cryptocurrency CFDs). That being said the entry-bar for most of them is $100, as demanded by HYCM.

Leverage

Trading on leverage is not supported by Coinfloor. While this may feel like a hindrance to some, keep in mind cryptocurrencies are pretty volatile as is. If you really want to gear-up you can try trading at another exchange, like Kraken.

Alternatively the forex brokers who support Bitcoin CFDs, like easyMarkets can be an option, if you are only looking to speculate. That being said, you will only be trading a financial derivative and not own the actual coins. This is the key specific, but there are a few others which we have described here.

Fees

While CoinFloor claims to be offering 0% fees for trading, there are fees when making a deposit and withdrawal. The charges, measured in different currencies are very unusual. The starting level in Euros is €1.5, while in dollar terms the minimum is $10. Above anything else, this is strange.

Trading platform

As we mentioned above, we couldn’t register an account for the purposes of this review. This leaves us with only the basic order book provided by CoinFloor. Here is a preview:

Methods of payment

Coinfloor accepts blockchain and bank transfers. While a fiat option is available, the minimum deposit requirement makes this exchange not that beginner friendly.

 

Coinfloor Review – is it scam or safe? Conclusion

 

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