LSZ Digital Exchange Ltd is a forex broker registered in the Cayman Islands, mainly providing investors with trading services in forex, indices, precious metals, energy, cryptocurrencies, and more. This broker supports the opening of both real and demo accounts, yet has not disclosed specific account types. Its maximum leverage is 1:2000, far exceeding the leverage range offered by normal brokers.
Corporate Background:
LSZ Digital Exchange Ltd, registered in the Cayman Islands, has not disclosed its registration and office addresses. The company chose the Cayman Islands as its registration location mainly due to the region's lax tax policies, which are applicable not only to individuals and companies but also to trusts, offering conveniences to businesses. Moreover, the Cayman Islands allow enterprises to set up offshore accounts to avoid foreign exchange controls, facilitating capital operations. The legal environment in this region is lax, and the requirements for information disclosure are minimal, benefiting businesses in keeping their operations confidential.
LSZ Digital Exchange Ltd is the holding company of LSZ Digital Exchange Ltd PTY LTD. LSZ Digital Exchange Ltd PTY LTD claimed to be registered in Australia, but no registration record of the company could be found. The domain name of the company was registered on July 17, 2023, making it a recently established entity with less than a year to its establishment.
Regulatory Status:
LSZ Digital Exchange Ltd PTY LTD claims to be regulated by the Australian Securities and Investments Commission (ASIC) and the National Futures Association (NFA) of the US, but this is not the case. They claim that their ASIC license number is 001300519, and their registration number with the NFA in the US is 0554185. However, upon verification, it was found that these regulatory information were incorrect. LSZ Digital Exchange Ltd PTY LTD has appropriated the regulatory license information of EZ MARKETS LTD, but there is no association between the two entities.
There is no record of LSZ Digital Exchange Ltd PTY LTD in ASIC's records, and the number 001300519 actually pertains to EZ MARKETS LTD. Likewise, despite providing an NFA registration number, that number belongs to EZ MARKETS LTD, not LSZ Digital Exchange Ltd PTY LTD. Such misleading and potentially fraudulent promotions may deceive potential clients; thus, investors should be cautious and ensure they verify the company’s regulatory status through reliable channels to protect their investments.
Trading Products:
This broker offers a variety of trading products, including forex, indices, precious metals, cryptocurrencies, and energy products. In terms of forex trading, they provide over 40 currency pairs with institutional-level spreads starting from zero, and leverage can go up to 1:2000, boasting the fastest trade execution. For indices trading, clients can choose from over 10 indices with compact spreads and no markup, with leverage reaching up to 1:100, using ST5 technology. Precious metals trading includes gold, silver, platinum, and palladium CFD contracts, as well as XAU/USD and XAG/USD, with leverage up to 1:100 and a minimum deposit of only 10 USD. For cryptocurrencies, they offer over 30 crypto instruments, with leverage up to 1:50, available for trading round the clock. In terms of energy trading, clients can explore trading opportunities in oil, natural gas, and other energy markets with tight spreads, suitable for day traders, with leverage up to 1:100.
Spread and Leverage:
This broker offers a diverse range of trading products, including forex, indices, precious metals, cryptocurrencies, and energy products. In forex trading, institutional-level spreads start from zero, with leverage going up to 1:2000; for indices trading, spreads are not specified but come without markup, with leverage up to 1:100; precious metals trading has unspecified spreads, with leverage reaching up to 1:100; cryptocurrency trading comes with up to 1:50 leverage; and energy trading also has unclear spreads, with leverage reaching up to 1:100.
Trading Platform:
This broker claims to use the ST5 proprietary trading platform, yet the information about the trading platform is opaque. The lack of solid company background support may increase the security risk for investors. They have not disclosed how to download the trading platform, causing inconvenience to clients and reducing the platform's accessibility. Therefore, for investors seeking a trading platform, it is advised to exercise caution with this broker, favoring those platforms that provide transparency and concrete backing.
Account Registration:
This broker supports the registration of real and demo accounts. If users wish to register a real account, they can visit the broker's official website, click the register button, and fill in account registration information, such as phone number, email address, verification code, and set a password. After completing the registration, users can log in to their real account and start trading. However, this broker has not disclosed specific account types, making it difficult for investors to understand necessary account details.
Summary:
LSZ Digital Exchange Ltd is a forex broker registered in the Cayman Islands, claiming to offer trading services in forex, indices, precious metals, cryptocurrencies, and energy, among others. However, the company has several issues. Firstly, it claims to be regulated by the ASIC in Australia and the NFA in the US, but these claims are false and may mislead investors. Secondly, the company's background information is opaque, its establishment time is short, and its regulatory status is unverifiable, presenting potential risks. Additionally, the information on trading products is not transparent enough to ascertain details such as spreads, and the trading platform lacks transparency and concrete support. Lastly, although it supports the registration of real accounts, the lack of specific disclosures about account types may make it difficult for investors to understand account details. In summary, investors should exercise caution with this broker, prioritizing platforms that offer transparency and reliable regulation to ensure investment safety.
Currently, LSZ Digital Exchange Ltd is marked as "Suspected Fraud" on TraderKnows.
