About Chaohuan Finance Limited
Overview
Chaohuan Finance Limited is a forex brokerage entity registered in China and established on July 26, 2022. It operates under the domain crm.chaohuanfx.com, targeting retail traders with leveraged forex trading services. The company offers three account tiers—Standard, Mini, and VIP—all featuring a maximum leverage of 1:400, though minimum deposit requirements are not disclosed. As a relatively new entity with a limited public footprint, information about its operations and background remains sparse.
Company Background
The firm is incorporated in China, a jurisdiction with a complex regulatory landscape for forex brokers. Founded in mid-2022, it has been active for a short period compared to established industry players. The broker's official website is crm.chaohuanfx.com, which primarily serves as a client portal rather than a fully-fledged informational site. No details regarding physical office addresses, key personnel, or corporate history have been made publicly available, which adds to the informational vacuum surrounding its operations.
Regulation and Licensing
Our cross-checks against authoritative regulatory registers indicate that Chaohuan Finance Limited does not hold a valid forex broker license from any recognized regulatory body. The absence of supervision from agencies such as the FCA, CySEC, ASIC, or any Chinese financial watchdog places this broker in the unregulated category. For traders, this means there is no external oversight to ensure adherence to financial standards, client fund segregation, or dispute resolution mechanisms. The lack of regulatory status is a significant red flag for those considering depositing funds.
Account Types and Trading Conditions
Chaohuan Finance Limited provides three account types: Standard, Mini, and VIP. All three share the same maximum leverage of 1:400, which is considered extremely high and can amplify both gains and losses. The broker has not published minimum deposit amounts for any of these accounts, leaving prospective clients without critical cost information. Additionally, details on spreads, commissions, and other trading costs are absent, making it difficult to assess the true cost of trading. The account structure suggests a focus on high-leverage trading rather than catering to different capital levels.
Instruments and Platforms
The broker has not disclosed the specific financial instruments it offers for trading, nor the trading platforms (e.g., MetaTrader, cTrader) available to clients. Without this information, traders cannot determine whether their preferred asset classes—such as forex pairs, commodities, indices, or cryptocurrencies—are accessible. The lack of platform details also raises questions about the quality of trade execution, charting tools, and system reliability. In our assessment, this opacity is a major obstacle for any trader seeking to evaluate the broker's suitability.
Risk Considerations
Chaohuan Finance Limited presents several significant risk factors: it is unregulated, recently established, and lacks transparency on key trading terms. The 1:400 leverage offered across all accounts introduces substantial financial risk, particularly for inexperienced traders. The broker's high FXCanary Scam Risk Score of 85 out of 100 (Severe) reflects these concerns and warns of potential investor harm. Traders should be aware that without regulatory safeguards, recourse in case of disputes or financial loss is extremely limited.
Conclusion
In summary, Chaohuan Finance Limited is an unregulated forex broker operating out of China with limited public information. Its high-leverage offerings and lack of disclosure on costs, instruments, and platforms make it a high-risk choice. While it may appeal to traders willing to accept these conditions, the severe risk rating and absence of oversight render it unsuitable for most retail participants. We strongly recommend that traders prioritize regulated alternatives with a proven track record.
Overview compiled by FXCanary from regulatory records and public data. full Chaohuan Finance Limited review