Crystal Forex is a forex broker that once existed in the world of Forex. Initially they offered some good investment opportunities and profit benefits for clients and had received mass recommendations in emails, forums, and on websites and social media.

However, the question of its genuineness and transparency as a broker had arisen as the firm’s user base increased.

Is Crystal Forex the Best Broker for You?

You might ask, is Crystal Forex a trustworthy broker? We will find out in this part of the article.

Although much information about Crystal Forex is not available, it is not a trusted broker. Crystal Forex is not regulated by any reputable financial authority with strict standards.

Hence, it is not advisable to open an account with them. If you want to stay safe, only sign up with brokers that are overseen by a top-tier and stringent regulator.

According to a review by BrokerChooser, Crystal Forex is a possible forex scam as there is no record of it being well regulated by any regulatory authorities.

Regulations play a major role in the authenticity of a broker and its functionality in different regions. An unregulated broker is not safe to invest with and therefore, is a big red flag.

Types of Regulatory Authorities

While it’s true that a broker’s regulation offers some level of protection, it’s important to note that not all regulators are created equal. The specific regulatory body overseeing a broker significantly impacts the safety of your funds. Our brokerage experts categorize regulators into three distinct groups:

Top-tier Regulatory Authorities

Top-tier regulators are authorities with strict rules and regulations. These top-tier regulators impose the most stringent rules to prevent brokers from engaging in fraudulent behavior.

A broker under the supervision of one of these regulators is likely adhering to the highest industry standards. Consequently, traders can anticipate fair pricing, transparent trading processes, and a secure trading environment.

Top-tier financial regulators worldwide include:

Name of regulator                                                                                           Country of operation

SEC (Securities and Exchange Commission)                                           United States

FCA (Financial Conduct Authority)                                                            United Kingdom

BaFin (Federal Financial Supervisory Authority)                                  Germany

ASIC (Australian Securities and Investments Commission)              Australia

FINMA (Swiss Financial Market Supervisory Authority)                    Switzerland

The Financial Conduct Authority (FCA) released a warning about the brokerage firm Crystal Forex in 2022. The release, which contained the support email and website address of Crystal Forex, clearly stated that the broker was not authorized by them.

Mid-tier Regulatory Authorities

In contrast, mid-tier regulators are akin to security guards at a county fair. While they strive to maintain order, they lack the resources and stringent rules of top-tier regulators. This diminished oversight results in less protection for investors.

Low-tier Regulatory Authorities

On the other hand, low-tier regulators are comparable to a watch program rather than professional security. Providing minimal oversight, brokers under their jurisdiction face fewer regulations and enforcement actions. These regulators typically offer little to no investor protection or compensation, leaving clients highly vulnerable.

Conclusion

Crystal Forex is not the best broker for any Forex trader. It is unsafe to invest in this firm as it is not regulated by any top tier regulatory bodies. Therefore, anyone who invests their money in this broker might lose them.

However, the tale of Crystal Forex now seems like a forgotten one as their website is down and there has been no word about them. Yet, the FCA warns that firms could take up new different names, website addresses and contact details, and continue their previous operations.

Therefore, there is need to do a proper review about a particular broker before choosing to invest in it. You can learn more about the best forex brokers to invest in by visiting the Beo Forex Academy.