Brokersway rates forex brokers by assigning a score of 1-10 with 0.1 increments. The score is calculated based on the broker’s performance on our rigorous testing and assessment. A score of 10.0 is perfect, representing an excellent broker while a score of 1.0 represents the lowest score for a terrible broker.
The first step in the rating process is the creation of our 6 macro categories and their percentage contribution to the total Broker rating:
- Regulation and Security (40%)
- Fees and Commissions (20%)
- Trading (15%)
- Trading tools (10%)
- Customer Support (10%)
- Trading education (5%)
The total broker rating is obtained by adding the scores obtained in each of the 6 macro categories. However, all categories do not contribute equally to the total score. For example, ‘Regulation and Safety’ contributes 40% to the total ratings while ‘Customer support’ contributes only 10% to the total score. This is because some macro-categories are more important to the forex trader than others. In this case, regulation is a key factor to consider when choosing a forex broker.
Under each macro category, there are micro categories, which are subdivided into data points. Each macro, micro, and data point has its own specific weight and all of them contribute to the overall broker score.
Regulation and Security (impact on broker rating: 40%)
This is the most important criterion used to assess forex brokers. This macro category might represent the thin line between a genuine broker and a fraudulent broker. We verify every data concerning the regulation and trader security provided for the broker.
Below are the micro categories used for the assessment:
- Regulations (70%)
- Brokerage experience (10%)
- Security (20%)
Under regulations, we check and verify the quality of the regulations. Tier 1 brokers score the highest points while offshore regulators score very low. Unregulated brokers score zero under this data point. A broker with 2 or more Tier 1 regulations will likely score the maximum points.
The broker’s reputation, user reviews, and experience are brought to light under the ‘Brokerage experience’ micro category. For instance, a broker that has been successfully operating for over a decade without hitches or scandals usually scores the maximum points in this micro category.
Security has to do with trader protection provisions. Below are some of its data points:
- Client fund segregation
- Two-factor authentication (2FA)
- Secured socket layer (SSL)
- Negative account protection
- Insurance for clients’ funds.
Fees and Commissions (impact on broker rating: 20%)
For this important macro category, we do not take the brokers for their words. We open trading accounts and trade repeatedly under various market conditions to estimate the broker’s charges for different asset classes.
The micro categories are as follows:
- Trading fees (70%)
- Non-trading fees (20%)
- Deposit and withdrawal methods (10%)
For trading fees, a high score will be received if the fees are low when compared with other brokers in the same class; that is, brokers with similar regulations, operating environment, reputation, years of experience, etc.
‘Trading fees’ data points include the following:
- Spreads
- Commissions on forex
- Commissions on CFDs
Brokers who charge ‘non-trading fees’ score lower points. Examples of data points for non-trading fees are deposit fees, withdrawal fees, inactivity fees, admin fees, etc.
Generally, deposit and withdrawal methods are grouped into the following data points:
- Bank transfers
- Credit or debit cards
- Online payments
- Cryptocurrencies
We check how many payment options are available to the trader. Are the popular online payment methods like Skrill, PayPal, Neteller, etc accepted? Are cryptos accepted? We use a holistic approach to score this section.
Trading (impact on broker rating: 15%)
This macro category focuses on everything related to opening and closing trading positions on the broker platforms. We assess the account creation process, the available account types, and tradable instruments. The trading platforms provided by the broker are also assessed. Finally, the order execution speed and trading environments are equally scrutinized.
Below are the micro-categories
- Account opening (10%)
- Account types (20%)
- Trading instruments (10%)
- Trading platforms (30%)
- Order execution (20%)
- Trading restrictions (10%)
For account opening, we check how easy and how long the process takes. Account approval times and verification times are also checked. We check whether the broker made provisions for all traders by designating various account types for newbies, experienced and, pro traders. Under ‘trading instruments,’ a broker that provides thousands of tradable assets under a wide range of asset classes scores high.
Brokers that provide their proprietary platforms along with popular platforms like MT4 and MT5 score highly. ECN/STP brokers with fast order executions are rated high. Brokers who restrict trading strategies like scalping, hedging, trading robots, etc lose scores under the ‘trading restriction’ micro category.
Trading tools (impact on broker rating: 10%)
Apart from the trading tools embedded in the platforms, we assess the other trading tools provided by the broker to support its clients. The micro categories are as follows:
- Market news and analysis (50%)
- Other tools (50%)
The quality of the market news, technical and fundamental analyses provided by the broker is assessed. Some brokers have a team of analysts who provide daily trading insights, weekly outlooks, technical analysis videos, webinars, etc.
If third-party analysis such as Trading Central, Claws & Horns, etc is provided; we rate accordingly. Some brokers provide trading tools like Autochartist, MT4 trader tools, trading robots, trading signals, Artificial intelligence tools, etc; we check the quality and award scores based on overall effectiveness.
Customer support (impact on broker rating: 10%)
In this macro category, we test the quality of the broker’s client support desk in terms of availability, accessibility, and overall professionalism.
The following micro categories are used:
- Client support channels (60%)
- Support quality (40%)
We check the available support channels and rate high if the broker can be reached via multiple channels such as instant web chat, email, online support tickets, phone lines, and social media.
For the ‘support quality’ micro category, we use the various channels available to contact the support team. We narrow our tests to courtesy and professionalism, speed of response, willingness to help, and how knowledgeable the team members are.
Holistic scoring is used; if a client support desk speaks multiple languages, has multiple channels, and is available 24/7, then their score is expected to be high.
Education (impact on broker rating: 5%)
Though many people do not place much emphasis on trader education, some brokers have managed to penetrate new grounds using an online trading academy, online webinars, and even physical seminars. We use the micro categories below:
- Training resources (60%)
- Other knowledge tools (40%)
The training resources provided by the broker are assessed to determine the quality, scope, and relevance. The full 60% mark allotted to this micro category will be awarded to a comprehensive and structured trading academy that contains enough resources to train a beginner from scratch to an appreciable level.
The remaining 40% score will focus on the availability of a glossary, video lessons, comprehensive FAQs, eBooks, training webinars, etc.
How we obtain and analyze data
At Brokersway, we have a team of experienced professionals comprising researchers, analysts, editors, and financial market traders. We spend time researching each broker gathering as much data as we can and verify them before scoring.
Data collection
We source our data primarily from the broker’s website and other third-party sources. If the broker has been existing for a while, we source for their customer reviews and collect key points from various sources which includes Sitejabber, trust pilot, Forex Peace Army, Google reviews, etc
In some cases, we may send out review forms to forex trading forums, social media and other websites where we can find traders.
Verification
This is stage where we verify all collated data. We deploy our resources to create accounts, verify them, download platforms, and trade with the broker under review. We contact the broker support team via the available channels. The overall objective of the testing is to obtain firsthand information and experience live trading with the broker.
We use the following devices for our testing:
- Desktop: Windows and Mac
- Laptops
- Tablets
- Mobile devices: iOS and Android
- Others: simulators, EA testers, etc.
Every unverified data is thrashed.
Scoring
At this final stage, we analyze all verified data, create a review, assign the scores, edit and proofread. The ratings are reassessed by our senior editors and analysts and a final score is given.
Most of our reviews are completed within 48-60 hours depending on the size of the data to analyze.
| How we compute our broker ratings at a glance | |
| Macro Categories | Micro categories |
| Regulation and Security (40%) | Regulations, Brokerage experience, security |
| Fees and Commissions (20%) | Trading fees, Non-trading fees, deposit and withdrawal methods and fees, |
| Trading (15%) | Account opening account, Account Types, types of trading instruments, Trading platforms, Order execution, trading restrictions, |
| Trading tools (10%) | Market news and analysis tools |
| Customer Support (10%) | Client support channels, Support Availability, Support quality |
| Trading education (5%) | Training resources other knowledge tools |
