Coinsquare Review – is it scam or safe? explained by professional Forex trading experts the “ForexSQ” FX trading team.
Coinsquare Review – is it scam or safe?
Coinsquare is one of the leading Canadian cryptocurrency exchanges. While other companies attempt to present themselves as global entities, this one puts a very strong emphasis on its origin and this shows in the service provided.
The company, security of funds
Coinsquare is based in Toronto. This is heavily advertised as a positive factor, as Canada is obviously a developed country with a sound financial and regulatory environment.
The focus on Canadian customers is further underlined by the fact the company offers trading against the CAD. While this is a major currency, followed closely by a lot of forex traders, it is by no means widely used out of the country, as the US dollar for instance. That being said the Base currency of your Coinsquare account can be: CAD, USD, EUR, GBP, AUD or BTC.
Trading in some exotic forms of metals trading is also available at Coinsquare. We will cover them later on in the review.
A 95% cold storage policy is implied at Coinsquare. This is a solid measure, which guarantees a very high level of security. While we are on the topic, Coinsquare has not been involved in a major hacking scandal.
There are relatively few reviews on Coinsquare. While the service is easy to use, some users apparently didn’t understand the fee structure completely.
Another interesting, but not crucial point is that this is one of the few exchanges, which exclusively states it doesn’t provide services to residents of New York. Of course, this is due to the 2015 BitLicence, which attempts to regulate cryptocurrency exchanges in the Big Apple.
Trading conditions
Trading instruments (cryptocurrencies)
When building a portfolio at Coinsquare one can include several assets, including some which are even more unusual than cryptocurrencies.
Additionally they allow trading in gold and silver Bars, as well as silver coins. These are traded differently than the spot pairs XAU/USD and XAG/USD, which forex traders are probably familiar with. We are not certain if the instruments offered by Coinsquare are only financial or feature physical delivery of the coins and bars upon request.
Minimum initial deposit
The minimum initial deposit at Coinsquare is $100. Given the Canadian focus of this company, we are not sure if this is measured in USD or CAD. This is a reasonable level of an initial investment, which is also required by a lot of forex brokers, like FxPro.
While one of the payment methods at Coinsquare has a lower minimum deposit, $100 is needed in order to confirm your bank account, which you will need in order to make a withdrawal.
Leverage
Coinsquare does not currently support margin trading. This is expected, as the company is targeting beginners and allowing the creation of a more long-term portfolio. Other crypto-exchanges do offer margin trading for some coins.
That being said, some forex brokers, like FXTM offer another way of trading cryptocurrencies. They support CFDs on cryptocurrencies (most commonly Bitcoin), which are used as a speculative instrument. These derivatives carry a few specifics, like the ability to use leverage and the fact you don’t actually own the coins you speculate on.
Fees
The fee structure at Coinsquare Is transparent. This can’t be said for some of the UK companies operating in the cryptocurrency space. The costs of making transaction on Coinsquare are in-line with the rest of the industry. They charge 0.10% for market makers (the traders who passively provide liquidity to the exchange) and 0.20% for market takers – the ones buying or selling directly at the best possible price. Nowadays some exchanges, like GDAX charge 0.25%.
Additionally a QuickTrade feature is available. It has slightly higher fees, which can go up to 0.4%, depending on the asset class.
Trading platform
Coinsquare offers a web-based interface, as well as a mobile app. We chose the word interface, as their offering represents what a long term investor will use to look at her assets instead of an actual trading platform, like MetaTrader4 (MT4), for instance. That being said, it does its job pretty well. Here is a preview:
The section which requires account verification features a pie-chart of your holdings, once you have any. Charting in this section is very basic with little room for technical analysis.
As you can see the liquidity is fairly deep, given the relatively exotic currency in question.
Methods of payment
Coinsquare accepts Bank transfers, Interac Online, and a cryptocurrency transfers. That being said there are a lot of details, regarding Canadian transfers.
Coinsquare Review – is it scam or safe? Conclusion
For more information about Coinsquare Review – is it scam or safe? visit TopForexBrokers.com Forex brokers comparison website, Tip ForexSQ.com foreign exchange trading experts please by share this article about Is Coinsquare Review – is it scam or safe?
