Why is this scam
Crown Finance is a forex broker that founded in 2017 and they headquartered in Scotland. They are owned and operated by Eventuall Limited, but there is not much information about the company on their website. When we researched Eventuall Limited on the internet, we also couldn’t find any information about them.
Crown Finance is clearly an unregulated and unlicensed broker because there is no sign about it on their website. Even in the regulation menu, there is no mention of their regulation or a certificate from any regulator. Also, UK’s Financial Conduct Authority (FCA) warned investors about them for being an unregulated broker in 2018. We know that getting licenses from regulators like FCA (Financial Conduct Authority), ASIC (Australian Securities and Investments Commission) or CySEC (Cyprus Securities and Exchange Commission) can be very difficult for brokers. But being unregulated broker is unacceptable for us. We can say this is Crown Finance’ weakest side.
The signs of confirmation
What we found more? Crown Finance offers 6 different account types. For basic account, minimum deposit limit is $250 which is a high minimum deposit limit in comparison with other brokers. Other account types are an advanced account, professional account, gold account, platinum account, VIP account. We coujldn’t find information about the spread information for any account type and maximum leverage rate they are offering. Also, the most popular forex trading platforms Metatrader4 and MetaTrader5 is not supported by Crown Finance. Instead of MetaTrader, they offer their own trading platform, which is a lack of well-known features and it is too simple for experienced traders.Crown Finance is an unregulated and probably a scam broker.
But we found another Crown Finance, which is registered on St. Vincent and the Grenadine and is not regulated by the FCA, has been using the name, ‘firm registration number’ (FRN) and the address of the authorised company to suggest they are genuine. This is called a ‘clone firm’, the regulator points out.
Let’s see the other signs.
Trading with properly licensed financial intermediaries is crucial for the safety of any investment. Licensed brokers are obliged to follow strict fiscal and ethical rules, including to maintain a minimum capital adequacy ratio, to keep all clients money in protected, segregated accounts and in some cases even to insure traders capital. “These scammers typically cold-call investors to promote shares, property or other investment opportunities that are non-tradable, worthless, overpriced or even non-existent”, the FCA also says in its warning against Crown Finance.
Recommendation – Crown Finance is an unregulated offshore broker, currently investigated by the FCA in the UK. Our strong advice is to choose only brokers licensed by respected financial institutions.