COZFX

COZFX is a retail forex and CFD broker that was founded on 23 October 2020. The broker lists its registered address as Unit G25 Waterfront Studios, 1 Dock Road, London, United Kingdom, E16 1AH, despite claiming Australian regulation. COZFX operates under the domain cozfxmarkets.com and presents itself as a broker offering trading in currencies, precious metals, and oils.

According to FXCanary's records, COZFX claims regulation by the Australian Securities and Investments Commission (ASIC) under a Market Making (MM) licence. However, the firm's London address and other indicators have led to a high scam risk score of 85/100, suggesting the broker may be a clone of a legitimate entity. Traders should exercise extreme caution when considering this broker.

The only regulator on file for COZFX is ASIC, with a Market Making (MM) licence status listed as unknown. The broker's registration in Australia is contradicted by its UK address, which raises questions about its regulatory compliance and operational jurisdiction. ASIC-regulated brokers are typically required to have a physical presence in Australia, and the discrepancy here is a major red flag.

In FXCanary's assessment, the lack of clarity around COZFX's regulatory standing, combined with its suspicious clone status, means that client funds may not be adequately protected. There is no evidence of compensation scheme membership or negative balance protection. Traders are strongly advised to verify any licence claims directly with the regulator before depositing funds.

COZFX offers two account types: an ECN account and an STP account. The ECN account provides a maximum leverage of 100:1, while the STP account offers a higher leverage of 400:1. The minimum deposit for both accounts is not disclosed in the known facts, but the broker's marketing materials mention a $100 minimum deposit. Spreads are claimed to start from 0.0 pips, and trading instruments include currencies, precious metals, and oils with a maximum leverage of 1:500.

The high leverage available, particularly 400:1 on the STP account, is significantly above industry norms for regulated brokers. Most reputable regulators cap leverage at 30:1 for retail clients. Such high leverage amplifies both potential gains and losses, making these accounts unsuitable for inexperienced traders. The lack of clarity on deposit requirements further adds to the opacity of the broker's offerings.

FXCanary's Scam Risk Score for COZFX is 85 out of 100, categorised as 'Severe'. This high score is driven by the broker's suspicious clone status, the inconsistency between its claimed ASIC regulation and its UK address, and the inaccessible office website. The broker's website, cozfxmarkets.com, does not provide clear information about its physical office or key operational details, which is a common trait among fraudulent entities.

Additionally, the combination of high leverage, unverified regulatory claims, and the absence of independent user reviews makes COZFX a high-risk choice for traders. Without verifiable proof of regulatory compliance or client fund segregation, depositing funds with this broker carries significant risk of loss.

COZFX presents itself as a forex and CFD broker with ASIC regulation, but substantial discrepancies in its registration details and a high scam risk score indicate it may not be a legitimate operator. The broker's offshore address and extreme leverage offerings are typical of unregulated or clone brokers. Traders should avoid depositing funds until the broker can provide transparent, verifiable regulatory information. FXCanary recommends seeking alternative brokers with clear oversight and a proven track record.