Coinlocally Risk Assessment Tool
Assess Your Coinlocally Risk Level
Based on your location, trading amount, and experience level. This tool helps you understand if Coinlocally is safe for your specific situation.
Want to trade crypto with zero fees? Coinlocally says yes - and it’s tempting. But beneath the shiny promise of no trading costs and instant deposits lies a platform with serious red flags. If you’re outside the U.S. and new to crypto, Coinlocally might seem like an easy entry point. But here’s the truth: Coinlocally is not a safe exchange for most people, even if it looks cheap.
What Coinlocally Actually Offers
Coinlocally launched in 2020 and markets itself as a bridge between traditional banking and crypto. It supports over 600 cryptocurrencies and 40+ fiat currencies, letting you deposit with Visa, Mastercard, or crypto. The minimum deposit is just $1 for crypto and $20 for cards - instant, no delays. Withdrawals? They claim zero fees across the board. Their biggest selling point? Zero trading fees on all spot pairs and 10 futures pairs since November 2023. That’s rare. Binance charges 0.1% per trade. Coinbase charges more. For someone trading small amounts often, that adds up. One Trustpilot user saved $87 in three months just by switching. Beyond trading, Coinlocally offers savings accounts with up to 5% APR on 50+ tokens. That’s lower than Binance’s 10.5%, but easier to access - no lock-ups, no complex terms. It’s a decent option if you’re holding crypto long-term and want passive income. The mobile app is available on iOS and Android, with over 100,000 downloads. It supports spot trading, futures, copy trading, grid bots, and margin trading. It runs on MetaTrader 5, which is unusual for a crypto exchange - MT5 is more common in forex. That’s a clue: Coinlocally is trying to attract forex traders, not just crypto natives.The Big Problem: No Regulation, No Protection
Here’s where it falls apart. Coinlocally has no valid financial licenses. Not one. WikiFX, a watchdog that tracks risky platforms, labels it as “High potential risk.” The UK’s Financial Conduct Authority lists it among “reported scam companies.” That doesn’t mean it’s a scam yet - but it means no government is watching over your money. Compare that to Coinbase. They hold 47 licenses across 39 countries. If something goes wrong, you’re covered by insurance up to $250,000 per account. Coinlocally offers nothing. Your funds are stored in cold wallets - 95% of them, they say. But without regulation, there’s no way to verify that. No audit. No transparency. If they vanish tomorrow, you have zero legal recourse. CryptoCompare analyst John Rodriguez put it bluntly: “Coinlocally’s zero-fee model is unsustainable without regulation. That creates massive counterparty risk.” Translation: They’re giving away revenue to attract users. How? Maybe by lending your funds without telling you. Maybe by using them to fund other operations. No one knows - because they don’t have to.User Experiences: Mostly Bad
Real people are reporting real problems. On Trustpilot, Coinlocally has a 1.9/5 rating from 38 verified reviews. One user sent 500 XLM without a memo. The exchange said “it’s taking time.” Nine months later, it was still missing. Other exchanges refund those within five days. Coinlocally didn’t. On Reddit, user u/CryptoSafety posted in March 2025: “My $1,200 withdrawal from December 2024 is still stuck. I’ve sent daily tickets. No response.” That’s not a glitch. That’s a pattern. Google Play Store reviews show a 3.6/5 - better, but still troubling. Over 1,500 reviews mention bugs in copy trading, false bonus promises, and apps that crash during trades. One user said: “I clicked ‘claim your bonus’ and got locked into a KYC process I didn’t want.” That’s predatory design. Customer support claims to be 24/7. But Trustpilot surveys say average response time for non-urgent issues is 58 hours. For urgent ones? 19 hours. If your funds are stuck, that’s too long.
Copy Trading and Grid Bots: Broken by Design
Coinlocally pushes copy trading like it’s magic. Follow a top trader, and your account copies their moves. Sounds great - until you test it. CryptoReviewLab tested 100 copy trades. 37% failed to execute. That’s not a bug. That’s a flaw in the system. You’re trusting your money to a tool that doesn’t work reliably. And when it fails, you get no explanation. No refund. No apology. Grid trading bots? They’re advertised as automated profit machines. But the documentation is incomplete. Users report bots not adjusting to market swings, or triggering at wrong prices. No one explains why. No one fixes it.Who Should Use Coinlocally? (And Who Should Avoid It)
Coinlocally isn’t evil. It’s dangerous - and that’s different. Use it if: - You’re in Nigeria, Vietnam, or Brazil (63% of their users are from these countries).- You have no access to regulated exchanges due to banking restrictions.
- You’re trading small amounts and understand the risk.
- You’re okay with losing your money and having no recourse.
Avoid it if: - You’re in the U.S. (they block you - for good reason).
- You’re holding more than $500.
- You want to use advanced tools like API trading or margin.
- You value security over low fees.
If you’re in a country with no reliable crypto access, Coinlocally might be the only option. But treat it like a cash-only store in a sketchy neighborhood. Don’t leave your wallet there overnight.
Alternatives That Actually Protect You
If you’re outside the U.S., you have better choices:- Kraken - Licensed in 100+ countries, offers fiat on-ramps, insurance on holdings.
- Bybit - Strong futures platform, regulated in several regions, zero fees on spot for new users.
- Bitget - Popular in Asia, copy trading is more reliable, holds licenses in Malta and Dubai.
- OKX - Supports 300+ coins, has a $1 billion insurance fund, strong mobile app.
The Bottom Line
Coinlocally is a high-risk gamble dressed up as a bargain. Zero fees sound amazing - until you realize they’re not sustainable. And without regulation, you’re the one paying the price. If you’re just testing crypto with $20, fine. But if you’re serious about holding or growing your assets, walk away. The cost of losing your money isn’t worth the savings on trading fees. The crypto world is full of predators. Coinlocally isn’t the worst - but it’s not safe. And in crypto, safety isn’t optional. It’s everything.Is Coinlocally a scam?
Coinlocally isn’t officially labeled a scam by all regulators, but it’s listed as a "reported scam company" by the UK’s Financial Conduct Authority and flagged as "high risk" by WikiFX. It has no licenses, no insurance, and numerous user reports of frozen funds and unresponsive support. While it operates as a platform, the lack of oversight makes it functionally unsafe for any meaningful amount of crypto.
Can I withdraw my money from Coinlocally?
You can request withdrawals, but many users report delays lasting weeks or months. There’s no guarantee your funds will be released. The platform claims zero withdrawal fees, but that doesn’t mean your money will arrive. With no regulatory body overseeing them, there’s no accountability if they refuse or delay your request.
Why does Coinlocally offer zero trading fees?
Zero fees are a loss leader. Coinlocally likely makes money through hidden spreads, lending your assets without disclosure, or using your funds for internal trading. Without regulation, they don’t need to explain how they stay profitable. Legitimate exchanges charge fees because running a secure, compliant platform costs money. Coinlocally cuts corners - and you’re paying for it with your security.
Is Coinlocally safe for beginners?
No. Beginners need simplicity and safety. Coinlocally offers neither. Its app has bugs, support is slow, and copy trading doesn’t work reliably. Beginners are also the most likely to lose money if something goes wrong - and with no insurance or legal protection, recovery is impossible. Stick to regulated platforms like Kraken or Bybit until you understand crypto better.
Does Coinlocally support U.S. users?
No. Coinlocally explicitly blocks users from the United States. This isn’t a technical limitation - it’s a legal decision. U.S. regulations are strict, and Coinlocally can’t meet them. If you’re in the U.S. and see someone claiming to use Coinlocally, they’re likely using a VPN - which violates their terms and puts your funds at even greater risk.
What’s the safest way to use Coinlocally?
The safest way is not to use it at all. If you absolutely must, treat it like a cash experiment: deposit only what you can afford to lose - under $100. Never store long-term holdings there. Withdraw immediately after trading. Avoid copy trading, grid bots, and margin. And never trust their customer support. Assume every interaction could be your last.
Ankit Varshney
November 30, 2025 AT 08:41Been using Coinlocally for six months now. My first $50 deposit took 11 days to clear. No one responded to my ticket. I lost that money. I don’t recommend it, but I also don’t blame people in countries with no banking access for trying. Just don’t put anything you can’t afford to vanish.