Score

1.52 /10
Danger

Crunch Risk

United States

5-10 years

Suspicious Regulatory License

Suspicious Scope of Business

Suspicious Overrun

High potential risk

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Exposure

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Score

Regulatory Index0.00

Business Index7.09

Risk Management Index0.00

Software Index4.00

License Index0.00

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Licenses

VPS Standard
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Warning: Low score, please stay away! 3
Previous Detection : 2024-09-23
  • It has been verified that this broker currently has no valid regulation. Please be aware of the risk!
  • The United StatesNFA regulation (license number: 0452412) claimed by this broker is suspected to be clone. Please be aware of the risk!

WikiFX Verification

Crunch Risk · Company summary
Crunch Risk Basic Information
Company Name Crunch Risk
Founded 2005
Headquarters United States
Regulations Suspected cloned
Products and Services Financial brokerage for hard-to-hedge commodities, Outsourced Price Risk Management and Consulting
Customer Support Phone: +1 (832) 474-3299
Education Resources Links to major commodity exchanges, market updates, access to CME, LME, IME, and Steel Market Updates

Overview of Crunch Risk

Crunch Risk is a brokerage and consulting firm, established in 2005 and headquartered in the United States, focusing on financial derivatives for commodities that are traditionally hard to hedge, such as Steel, Iron Ore, Base Metals, and Plastic Monomers. As a leading broker in the U.S. and Europe, especially for Steel, Aluminum Premiums, and Ferrous Scrap, Crunch Risk plays a crucial role in these niche markets. Beyond its brokerage services, the firm extends its expertise to outsourced price risk management and consulting, offering clients strategic advantages through its specialized knowledge and market presence. Despite its specialized offerings, the legitimacy of Crunch Risk's operations is under scrutiny due to the suspected cloning of its regulatory license with the United States National Futures Association (NFA), casting doubts on its regulatory compliance and overall credibility.

Overview of Crunch Risk

Is Crunch Risk Legit?

Crunch Risk claims to be regulated by the United States National Futures Association (NFA) under license number 0452412. However, this claim is under suspicion of being a clone of a legitimate license. Potential clients and traders should exercise caution and be aware of the risks involved when dealing with brokers suspected of cloning regulatory licenses. This situation raises concerns about the authenticity of Crunch Risk's regulatory status, highlighting the importance of verifying regulatory credentials through official regulatory bodies before engaging in any trading activities.

Is Crunch Risk Legit?

Pros and Cons

Crunch Risk's operation in specialized financial derivatives for commodities such as Steel, Iron Ore, and Plastic Monomers positions it uniquely in the market, catering to a niche sector with its brokerage services and outsourced price risk management. However, the firm's regulatory claim of being licensed by the United States National Futures Association (NFA) under license number 0452412 is under suspicion of being a clone, casting a significant shadow over its legitimacy and operational integrity. This dubious regulatory status raises substantial concerns about the safety of client funds and the overall transparency of Crunch Risk's operations, suggesting potential risks that clients might face without proper regulatory oversight and protection mechanisms in place.

Pros Cons
  • None
  • Suspected cloned NFA regulation license raises serious concerns about legality and operational transparency.
  • Potential risks to client funds and lack of clear dispute resolution mechanisms.
  • Questions about the firm's ability to provide secure and regulated brokerage services.

Products and Services

Financial Brokerage: Specializing in commodities such as Steel, Iron Ore, Base Metals, and Plastic Monomers, with notable brokerage in Steel, Aluminum Premiums, and Ferrous Scrap across the U.S. and Europe. They also deal in block futures like Comex Copper, energy, and plastic monomers.

Products and Services

Outsource Price Risk Management and Consulting: Provides services to manage commodity price risk using Crunch Risk's expertise and resources, offering a value proposition that may exceed the capabilities of internal resources alone.

Products and Services

Customer Support

Crunch Risk, LLC provides customer support from its office located at 2401 Sunset, Suite 100, Houston, TX, 70005. Clients and interested parties can reach out to the firm directly via phone at +1 (832) 474-3299 for inquiries, support, or any service-related questions.

Customer Support

Educational Resources

Crunch Risk offers educational resources primarily through links to major commodity exchanges and market updates. These resources include access to the Chicago Mercantile Exchange (CME), London Metal Exchange (LME), Iran Mercantile Exchange (IME), and Steel Market Updates, providing clients with valuable insights and information on various commodities, including ferrous and base metals, energy, and plastics.

Conclusion

Crunch Risk offers a focused niche in financial derivatives brokerage, particularly in commodities like Steel, Iron Ore, and Plastic Monomers, alongside its outsourced price risk management and consulting services. Its specialization in hard-to-hedge commodities and the U.S. and European markets for steel, aluminum premiums, and ferrous scrap highlights its unique position in the financial brokerage industry. However, the shadow of doubt cast by its claimed but suspected cloned regulatory status under the United States National Futures Association (NFA) significantly undermines its credibility and raises concerns about the safety of client investments and the transparency of its operations. This aspect notably impacts its attractiveness to potential clients, emphasizing the critical importance of verifying regulatory credentials and understanding the risks involved in trading with Crunch Risk.

FAQs

Q: What commodities does Crunch Risk specialize in?

A: Crunch Risk specializes in brokerage services for commodities like Steel, Iron Ore, Base Metals, and Plastic Monomers.

Q: Can Crunch Risk assist with price risk management for commodities?

A: Yes, Crunch Risk offers outsourced price risk management and consulting services to help manage commodity price risks effectively.

Q: What is the regulatory status of Crunch Risk?

A: Crunch Risk claims to be regulated by the United States National Futures Association (NFA) under license number 0452412, but this claim is under suspicion of being a clone, which raises concerns about its regulatory legitimacy.

Q: Does Crunch Risk provide educational resources?

A: Yes, Crunch Risk offers educational resources through links to major commodity exchanges and market updates, including access to the Chicago Mercantile Exchange (CME) and London Metal Exchange (LME).

Q: What kind of customer support does Crunch Risk offer?

A: Crunch Risk provides customer support from its office in Houston, Texas, and can be contacted via phone for any inquiries, support, or service-related questions.

Risk Warning

Online trading involves significant risk, and you may lose all of your invested capital. It is not suitable for all traders or investors. Please ensure that you understand the risks involved and note that the information provided in this review may be subject to change due to the constant updating of the company's services and policies. In addition, the date on which this review was generated may also be an important factor to consider, as information may have changed since then. Therefore, readers are advised to always verify updated information directly with the company before making any decision or taking any action. Responsibility for the use of the information provided in this review rests solely with the reader.

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