The crypto market is full of exchanges promising big returns with little effort. Coinlocally is one of them. It says it offers zero trading fees, up to 5% APR on savings, and access to over 300 cryptocurrencies. Sounds great, right? But beneath the flashy headlines is a platform with no regulation, poor user reviews, and red flags that should make any serious trader pause.
What Coinlocally Claims to Offer
Coinlocally markets itself as a next-generation exchange built on blockchain tech. It supports spot trading, margin trading with up to 1:1000 leverage, futures contracts, P2P trading, and a savings program called "Earn." You can deposit as little as $1 in crypto or $20 via Visa or Mastercard. The platform says it uses cold storage and 2FA to keep your funds safe. Their mobile app, available on both iOS and Android, claims to be smooth and feature-rich.
The biggest draw? Zero fees on all spot trades and 10 futures pairs. That’s something even Binance and Kraken don’t offer across the board. For casual traders or those doing high-volume trades, this sounds like a win. Add in the 5% estimated APR on 50+ tokens, and it looks like a solid way to earn passive income.
The Reality: No Regulation, No Safety Net
Here’s the catch: Coinlocally has no license from any financial authority. WikiFX confirmed in June 2024 that the exchange has "no valid regulations." That means no government oversight, no investor protection, and no legal recourse if things go wrong.
Compare that to Binance, which operates under licenses in Dubai (VARA) and Abu Dhabi (ADGM), or Coinbase, which is registered with U.S. regulators and offers FDIC insurance on fiat deposits. Coinlocally offers none of that. If the platform disappears tomorrow - and history shows unregulated exchanges often do - your coins are gone for good.
And it’s not just about regulation. The leverage offered - up to 1:1000 - is extreme. In the EU, MiCA regulations limit retail traders to 1:25. Coinlocally’s 1:1000 leverage is a red flag. It’s not for experienced traders. It’s a trap for those who don’t understand how quickly margin calls can wipe out entire accounts.
User Experiences: Broken Apps, Silent Support
Real users aren’t happy. Trustpilot gives Coinlocally a 1.9 out of 5 rating - labeled "Poor." Google Play has over 1,500 reviews, and many are brutal:
- "They force you to download and register by saying they will give you bonuses and prizes, but there are no bonuses. Just lies."
- "Very bad, openly stealing. Copy trading is a disaster full of bugs."
- "After the update, the types of order shrank to 4 from 6. Missing trailing stop. Awful mobile app. Couldn't be worse."
One user reported a 9-month-long struggle to get a refund of 500 XLM. The exchange didn’t respond properly. Standard industry practice resolves such issues in under 5 days. Coinlocally took over 270 days - and still didn’t fix it.
The mobile app has been updated multiple times, but each update removes features. Chart tools, order types, and risk-reward calculators vanished without explanation. The iOS app even had font display issues. If the app can’t handle basic functions, how can you trust it with your life savings?
The "Zero Fee" Trap
Zero fees sound amazing. But in crypto, there’s no such thing as free. Exchanges make money through other means - and Coinlocally’s model is no exception.
With no regulatory oversight, Coinlocally likely profits from:
- Spreads on P2P trades
- Interest on margin loans
- Withholding funds during slow withdrawals
- Using user assets in their own liquidity pools
Chainalysis’ 2025 Crypto Crime Report found that exchanges using "liquidity mining" and zero-fee models had a 63% average user fund loss rate. That’s not a coincidence. When an exchange doesn’t have to follow rules, it can manipulate how your money moves behind the scenes.
Savings Program: Too Good to Be True?
The "Earn" program promises up to 5% APR on over 50 tokens. That’s higher than what Coinbase offered in late 2025 - but Coinbase backs its yields with regulated, insured infrastructure. Coinlocally doesn’t. There’s no disclosure about where your funds are lent, who’s borrowing them, or how they’re secured.
If you’re depositing ETH, BTC, or SOL into this program, you’re not just earning interest - you’re taking on counterparty risk. And with no transparency, you have no way to know if those funds are even still there.
Who Should Avoid Coinlocally
Here’s who should stay far away:
- Anyone in the EU - MiCA regulations ban unregulated platforms like this.
- Users who want to trade with leverage - 1:1000 is gambling, not investing.
- People who need customer support - the help desk is silent or slow.
- Anyone storing more than a few dollars - this isn’t a wallet, it’s a gamble.
Even if you’re outside the U.S. and EU, the risks outweigh the rewards. The FTC reported $247 million in losses from unregulated exchanges in Q2 2025 alone. Coinlocally is exactly the kind of platform that ends up on those lists.
What to Do Instead
If you want zero fees, try KuCoin or Bybit - both regulated, transparent, and with solid track records. If you want high-yield savings, use Coinbase Earn or Kraken’s Staking - both offer clear terms, audits, and legal protections.
Don’t be fooled by marketing. A platform that doesn’t disclose its ownership, has no license, and deletes features from its app isn’t innovative - it’s dangerous.
Final Verdict
Coinlocally is a high-risk, unregulated exchange that uses zero fees and high yields to attract users - then fails to deliver on basic functionality, security, or support. It’s not a scam in the classic sense - it doesn’t steal your coins outright. But it operates in a legal gray zone where your funds have zero protection, and your complaints go unanswered.
For now, it’s still online. But history shows that exchanges like this rarely survive more than 18-24 months. CoinDesk’s Q4 2025 report found a 92% attrition rate for unregulated exchanges launched since 2023. Coinlocally was founded in 2024. It’s already at risk.
If you’ve already used Coinlocally, withdraw your funds. If you’re thinking about it - walk away. There are better, safer options out there. You don’t need to risk your crypto for a few extra percentage points in yield.
Is Coinlocally a scam?
Coinlocally isn’t a classic scam that instantly disappears - but it operates with zero regulation, poor transparency, and widespread user complaints. Many experts classify it as a "high-risk" platform. While your funds aren’t automatically stolen, there’s no legal protection if the exchange shuts down, freezes withdrawals, or loses your assets. Treat it like a casino - not a bank.
Can I trust Coinlocally’s security claims?
No. Coinlocally claims to use cold storage and 2FA, but without regulatory oversight, there’s no way to verify these claims. Regulated exchanges are audited regularly. Coinlocally isn’t. A 2025 FTC report found that 87% of crypto exchange fraud cases involved platforms making similar security promises without proof. If you can’t audit it, don’t trust it.
Why does Coinlocally offer 1:1000 leverage?
High leverage attracts inexperienced traders who believe they can make quick profits. But it’s a trap. A 1% price move against you can wipe out your entire position. In regulated markets, this level of leverage is banned for retail users. Coinlocally uses it to increase trading volume - and fees - while putting users at extreme risk. It’s not innovation. It’s predatory.
Does Coinlocally work in the USA?
No. Coinlocally explicitly blocks users from the United States. This isn’t a technical limitation - it’s a legal one. U.S. regulations are strict, and Coinlocally doesn’t meet them. If you’re in the U.S., you won’t be able to sign up. If you’re outside the U.S. but use a VPN, you’re still violating terms and have zero legal recourse if something goes wrong.
What are better alternatives to Coinlocally?
For zero-fee spot trading, try KuCoin or Bybit - both are regulated and have stable apps. For savings, use Coinbase Earn or Kraken Staking - both provide clear terms, audits, and legal protections. If you want advanced features, Binance offers deep liquidity and reliable support. You don’t need to risk your funds on an unregulated platform when safer, proven options exist.
Is Coinlocally’s mobile app safe to use?
No. Multiple users report that updates remove key features like trailing stops and chart tools. The app has inconsistent performance, poor font rendering on iOS, and frequent crashes. One user called it "openly stealing." If your trading app can’t reliably show your orders or prices, it’s not safe. Use a desktop browser instead - but even then, don’t store large amounts.
Why does Coinlocally have such low TrustScore?
The low TrustScore (1.9/5) comes from hundreds of real user reports: unresponsive support, frozen withdrawals, missing bonuses, and disappearing app features. Trustpilot’s system filters out fake reviews - so this score reflects actual user pain. If over 1,500 Google Play users say the same things - it’s not coincidence. It’s a pattern of failure.
Can I withdraw my funds from Coinlocally?
Some users report successful withdrawals - but only for small amounts and with long delays. Others have been stuck for months. There’s no public data on withdrawal success rates. Given the lack of regulation and user complaints, assume withdrawals could be delayed, blocked, or lost. If you’re holding crypto on Coinlocally, treat it as temporary - move it to a wallet you control as soon as possible.
1 Comments
Alex Williams
February 19, 2026 AT 18:43 PMZero fees sound amazing until you realize they’re making money off your margin calls and P2P spreads. This isn’t a platform-it’s a liquidity sinkhole. I’ve seen this script before: flashy UI, fake bonuses, then the app ‘updates’ and removes every useful feature. The 1:1000 leverage? That’s not innovation, it’s a roulette wheel with your life savings on the board. If you’re not using a hardware wallet, you’re already playing with house money.