Overview
South Africans Ardi Coetzee, Nico Lourens, and Nielbert Schmidlin established Koinexpert Arbitrage Services (KAS) in 2016. Arbitrage trading involves purchasing a currency at a cheaper rate in one market and selling it at a greater rate in another. The other sites to watch are Currency Hub and Future Forex.
Getting started with KoinExpert
KoinExpert has created automated software that uses the arbitrage principle to find high-quality arbitrage opportunities and execute trades immediately to make quick money.
You must possess the following to begin arbitrage trading:
- A passport, ID card, or book issued in South Africa
- A tax number for South Africa
- A bank account in South Africa with your name on it
When you satisfy the prerequisites, you first log in and create an account on Koinexpert.com. Koinexpert has streamlined their online application process following the commitment to adhering to all regulatory requirements on Crypto Assets. By responding to a few personal questions and uploading documents, the user needs to finish the KYC and AML verification.
How arbitrage trading works at KoinExpert
Once the user is prepared to begin trading, transferring money to the trading account and deciding the intermediary they want to book trade with are the next steps. The intermediary usually only needs to see a Proof of Payment, although each has its preferred methods and deadlines. The best course of action is to confirm it in advance with them. Before doing this make sure you are aware of the price of Bitcoin to SA Rand.
Koinexpert Technology analyzes prices across several markets after the funds have been received in USDC and places trades when the market is most advantageous. Initial funds and winnings are refunded to the bank account the next day after trading is finished, assuming trading was profitable. A statement detailing every aspect of the trade will also be sent to traders through email.
Features of KoinExpert arbitrage
Users will have to create a new trading account with the help of a middleman. Five intermediaries have partnered with KoinExpert. Depending on the magnitude of the trade, each has a different rate that the user may prefer. The exchange offers consumers a few extra tools to help them decide when to trade knowledgeably. A Telegram group and bot help users find current data on various crypto assets and arbitrage opportunities. Koin Expert provides two trade choices.
- Immediate Trade, Low Risk (Default)
- Greater Risk – Batch Trading
The “Immediate Trade” option is commonly used. As soon as the exchange receives user confirmation, deals are locked in; trades are doubly hedged. However, using “Batched Trade,” KoinExpert gathers clients with other clients into a batch and only trades your cash as they come in. Batch trading is the riskier choice because it exposes clients to FX swings. Seasoned clients should only use the “Batched Trade” option with a better understanding of currency markets and a larger tolerance for risk.
Fee and trading limits
KoinExpert charges a 20 per cent service fee on all successful transactions to use its services. However, the exchange insists that while they cannot and can not guarantee every trade’s success, they will not impose a fee in the event of a loss. A thorough statement of account will be issued following each transaction to keep clients informed about the status and development of their arbitrage transactions. Koinexpert requires a minimum trade size of R100,000 ZAR. Reduced trade sizes will result in lower profits due to fixed bank fees. These fees include a conversion fee of between 0.2 per cent and 0.5 per cent and a SWIFT fee of +/- 500.00 ZAR.
Security and regulations
Forex intermediates are businesses that help customers exchange their local Rand currency for foreign currency like US dollars or euros. They must possess an FSP License and abide by all applicable regulations for Financial Services Provider (FSP) License Holders. The many intermediaries that Koinexpert provides each have a separate set of costs and fees. Some charge flat fees, while others levy costs based on a percentage. KoinExpert assist clients in making the optimal choice based on their size of transaction when they register on their website.
The KoinExpert account can be immediately linked by users who own the Yubi key hardware wallet. A Yubikey is a gadget that resembles a USB flash drive. When users need to log in to a website, they tap the Yubikey, and it logs them in. It is plugged into the computer’s USB port. Users only need to set it up on a website that supports it. Koinexpert supports Yubikeys because it takes security very seriously.
As per the Financial Advisory and Intermediary Services Act of 2002, Koinexpert is not yet licensed to offer financial advice. But Koinexpert is dedicated to adhering to all regulatory requirements related to crypto-assets. If someone is aware of the hazards involved with crypto assets, they can use the service offered by Koinexpert. Because of their volatility, trading, buying, and selling cryptocurrencies always carry a certain amount of risk.
Referrals
If a client makes a trade, Koinexpert keeps 20% of the profit while the client receives 80%. The typical Koinexpert service charge is 20%. Koinexpert only keeps 16 per cent of the profit when the client is reffered by someone, with the remaining 4 per cent going to the person or people who referred the client. If there were that many people who referred the client and their referrers, the 4 per cent is further divided, with 50% of the referral fee going to the direct referrer and the remaining portion being split among up to 4 other referrers.
Customer service
KoinExpert has a highly functional customer service system and very educative articles on their website blog with a comprehensive Knowledge Base feature that answers most investors’ questions, similar to FAQ. The quickest and most effective way to contact KoinExpert is to open a support ticket rather than just filling out a contact form. An automatic support ticket will be created with a reference number, and a support representative will react as soon as possible. Unfortunately, live chat is not available. The exchange claims it is making every effort to restore the service fully.