Below is a comprehensive analysis of SHANGQUAN LTD, based on the provided official website (https://www.shangquanfx.com/), focusing on online complaint information, risk level assessment, website security, WHOIS lookup, IP and hosting analysis, social media presence, red flags, regulatory status, user precautions, potential brand confusion, and website content analysis. The analysis incorporates publicly available information and critical evaluation of the broker’s legitimacy.

SHANGQUAN LTD Broker Analysis

## 1. Online Complaint Information

Multiple sources report significant complaints against SHANGQUAN LTD, primarily centered around fraudulent activities and difficulties with fund withdrawals:

• ScamWatcher.org (2022): Highlights that SHANGQUAN does not guarantee fund security, with clients reporting issues when attempting to withdraw funds. Tactics include aggressive urging to make additional trades, high withdrawal fees, or outright denial of withdrawal requests. One user reported their account being emptied after restricted access, with the broker citing a “leaked or misused password” without evidence.
• ForexBrokerz.com (2022): A user reported being scammed via a WeChat contact who pushed them to register on SHANGQUAN’s platform, promising high returns. The user lost USD$100,000, suspecting manipulation by the broker.
• ScamReportConsensus.com (2022): Describes SHANGQUAN as an offshore broker posing a high risk to investments, with complaints about unfulfilled withdrawal requests and lack of transparency.
• TheForexReview.com (2022): Notes the website’s closure after fraudulent activities, with users reporting losses due to manipulated trades. These complaints consistently point to patterns of fund mismanagement, lack of accountability, and potential scam operations, raising serious concerns about SHANGQUAN’s legitimacy.

  2. Risk Level Assessment

SHANGQUAN LTD is assessed as a high-risk broker based on the following:

• Unregulated Status: No evidence of licensing with any reputable regulatory body (see Regulatory Status below).
• Offshore Operations: Likely operated from an offshore jurisdiction, increasing the risk of fund mismanagement and lack of oversight.
• User Complaints: Widespread reports of withdrawal issues and fund losses indicate a high likelihood of fraudulent behavior.
• Lack of Transparency: Minimal information about ownership, management, or operational details heightens risk.
• Scam Reports: Multiple scam alerts from review platforms assign SHANGQUAN a high fraud risk score. For example, ScamChecker.org labels it an unregulated scam broker.

  3. Website Security Tools

An analysis of https://www.shangquanfx.com/ for security features reveals:

• Website Accessibility: As of April 25, 2025, the website appears to be offline or inaccessible, consistent with reports of its closure following scam allegations.
• SSL/TLS Encryption: When the site was active, there was no mention of robust encryption standards (e.g., HTTPS with a valid SSL certificate). Lack of visible security protocols is a red flag.
• Security Headers: No data is available on the use of security headers (e.g., Content Security Policy, X-Frame-Options) due to the site’s inaccessibility.
• Vulnerability Reports: No specific vulnerability scans are available, but the site’s reported closure after fraudulent activities suggests poor security practices or intentional obfuscation.

  4. WHOIS Lookup

A WHOIS lookup for shangquanfx.com provides limited information due to privacy protections and the site’s apparent closure:

• Domain Registration: Registered prior to 2022, but exact dates are obscured by domain privacy services, a common tactic among dubious brokers to hide ownership.
• Registrar: Unknown, as WHOIS data is incomplete.
• Registrant: No clear registrant details, which aligns with complaints about lack of transparency. Legitimate brokers typically provide verifiable ownership information. The use of privacy protection and lack of identifiable ownership are significant red flags, as regulated brokers are required to disclose such details.

  5. IP and Hosting Analysis

Due to the website’s inaccessibility, precise IP and hosting details are unavailable. However, based on historical data:

• Hosting Provider: Likely hosted in an offshore jurisdiction, as suggested by scam reports indicating operations from a “scam haven.”
• IP Reputation: No specific IP data is available, but ScamWatcher.org notes that offshore brokers often use servers in jurisdictions with lax regulations, increasing the risk of data misuse.
• Chinanet Connection: While not directly linked to SHANGQUAN, Chinanet (a Chinese ISP) is noted as a low fraud risk ISP in general, but this does not apply to SHANGQUAN’s specific operations. The lack of verifiable hosting information and the site’s closure further indicate potential intentional obfuscation.

  6. Social Media Presence

SHANGQUAN LTD’s social media presence is minimal or nonexistent:

• No Official Accounts: No verified accounts on platforms like Twitter, LinkedIn, or WeChat are associated with SHANGQUAN LTD. Some scam reports mention fraudulent WeChat contacts promoting the platform, but these are not official.
• User Reports: Complaints on review sites mention scammers using social media (e.g., WeChat) to lure victims, but no legitimate social media engagement by the broker is documented.
• Red Flags: The absence of a professional social media presence is unusual for a legitimate broker, as regulated firms typically maintain active accounts for client engagement and transparency.

  7. Red Flags and Potential Risk Indicators

Several red flags indicate SHANGQUAN LTD is not a trustworthy broker:

• Unregulated Operations: No licensing with reputable regulators like the Hong Kong SFC, FCA, ASIC, or CySEC.
• High Leverage Offers: Offered leverage up to 1:400, far exceeding limits set by regulated jurisdictions (e.g., 1:30 in the EU, 1:50 in the US), posing significant risk to retail traders.
• Opaque Ownership: No clear information about the company’s CEO, management, or parent entity (listed only as “Shangquan International Share Co., Limited”).
• Withdrawal Issues: Consistent reports of clients being unable to withdraw funds, with tactics like high fees or account restrictions.
• Website Closure: The site’s reported shutdown after scam allegations suggests an attempt to evade accountability.
• Cryptocurrency Deposits: Limited deposit options to cryptocurrencies and unverifiable bank transfers, which are common among scam brokers due to their anonymity.
• Aggressive Marketing: Reports of pushy tactics via WeChat or phone calls to deposit funds quickly, a hallmark of scam operations.

  8. Regulatory Status

SHANGQUAN LTD is unregulated, as confirmed by multiple sources:

• Hong Kong SFC: A check with the Hong Kong Securities and Futures Commission (SFC) database reveals no licensed entity named “Shangquan” or “Shangquan International Share Co., Limited.”
• Other Regulators: No evidence of registration with other major regulators like the FCA (UK), ASIC (Australia), CySEC (EU), or CFTC (US).
• Implications: Regulated brokers in Hong Kong must maintain a minimum capital of HKD 5 million (USD 640,000) and participate in compensation funds. SHANGQUAN’s lack of such credentials means clients have no recourse in case of insolvency or fraud. The absence of regulatory oversight is a critical risk factor, as it allows the broker to operate without accountability.

  9. User Precautions

To protect against potential scams like SHANGQUAN LTD, users should:

• Verify Regulation: Always check a broker’s licensing status with reputable regulators (e.g., SFC, FCA, ASIC) before depositing funds.
• Avoid Offshore Brokers: Be cautious of brokers operating from jurisdictions with lax oversight, as they often lack client protections.
• Research Complaints: Review platforms like ScamWatcher.org or ForexBrokerz.com for user experiences and scam alerts.
• Secure Deposits: Use traceable payment methods (e.g., credit/debit cards) rather than cryptocurrencies, which offer little recourse for recovery.
• Beware of High Leverage: Avoid brokers offering excessive leverage (e.g., 1:400), as it increases financial risk.
• Consult Professionals: If scammed, contact fraud recovery experts or file a chargeback for card payments. Avoid “recovery” services demanding upfront fees.
• Monitor Communications: Be wary of unsolicited calls or social media contacts (e.g., WeChat) pushing quick investments.

  10. Potential Brand Confusion

SHANGQUAN LTD may exploit brand confusion to appear legitimate:

• Similar Names: The name “Shangquan” could be confused with legitimate financial institutions or brokers in Hong Kong or China, though no specific instances are documented.
• Clone Broker: ScamReportConsensus.com labels SHANGQUAN as a “clone” broker, disguising itself as a legitimate entity to deceive investors.
• Hong Kong Claim: By claiming to be based in Hong Kong, a major financial hub, SHANGQUAN may mislead users into assuming regulatory oversight, despite lacking SFC licensing.
• MetaTrader 5 (MT5): The use of a reputable trading platform like MT5 may create a false sense of legitimacy, though its presence does not validate the broker. Users should verify the exact company name and regulatory status to avoid confusion with legitimate firms.

  11. Website Content Analysis

When active, the SHANGQUAN LTD website exhibited several concerning traits:

• Lack of Legal Documentation: No links to Terms and Conditions, Customer Agreement, or Privacy Policy, which are mandatory for regulated brokers.
• Generic Promises: Advertised low spreads and high leverage (1:400) without detailed trading conditions, a common tactic to lure inexperienced traders.
• Incomplete Address: Listed an incomplete Hong Kong address, undermining claims of being based in a financial hub.
• Misleading Logos: Displayed logos for payment processors (e.g., Skrill, Neteller), but actual deposit options were limited to cryptocurrencies, suggesting false advertising.
• Poor Transparency: No information about the company’s leadership, operational history, or financial backing, which is standard for legitimate brokers. The website’s content was designed to appear professional but lacked substance, aligning with scam broker characteristics.

  12. Conclusion

SHANGQUAN LTD (https://www.shangquanfx.com/) is an unregulated, high-risk broker with numerous red flags indicating fraudulent operations. Key concerns include:

• Widespread complaints about withdrawal issues and fund losses.
• Lack of regulatory oversight from any reputable authority.
• Opaque ownership and operational details.
• Use of aggressive marketing and high-leverage offers to lure victims.
• Website closure following scam allegations, suggesting an attempt to evade accountability. Users are strongly advised to avoid SHANGQUAN LTD and opt for regulated brokers with verifiable licenses, transparent operations, and positive user feedback. If already invested, contact fraud recovery professionals or pursue chargebacks for card payments.

  13. Sources

• ScamWatcher.org: Shangquan Review (2022)
• ForexBrokerz.com: Shangquan Review (2022)
• ScamReportConsensus.com: Shangquanfx Review (2022)
• TheForexReview.com: Shangquan Review (2022)
• ScamChecker.org: Shangquanfx.com Review (2022)