Traders Union: Online Broker Evaluation Method
At Traders Union, we have developed an objective and thorough evaluation system for Forex brokers to assist traders in making informed decisions. This document details the key parameters we use in our assessments and their role in the overall score.
We analyze each parameter to provide transparent and fair ratings. Currently, brokers are evaluated based on 250 specific measurable data points, and this list is continuously expanding to ensure the most comprehensive analysis possible.
Comprehensive Broker Evaluation System
To offer traders a transparent and equitable evaluation of Forex brokers, we have devised a sophisticated scoring system grounded in our essential evaluation parameters. Each parameter is assigned a different weight in the overall score, reflecting its significance in the realm of Forex trading. The highest possible score a broker can attain is 10 points.
| Parameter | Weight | Description | Key Factors |
|---|---|---|---|
| 20% | Ensures broker credibility and adherence to regulatory standards | Presence of tier-1 regulation, participation in an investor protection fund | |
| 15% | Reflects broker reputation and customer satisfaction based on user reviews and feedback scores | User reviews, feedback scores | |
| 15% | Directly impacts trader profitability | Average spread for major pairs, commission structures, absence of hidden fees | |
| 12.5% | Assesses the quality and variety of trading platforms provided | Platform features, stability, compatibility with devices | |
| 10% | Evaluates the ease and speed of opening a trading account, as well as the variety and flexibility of account types offered by the broker. | Evaluates the account opening process, including ease, speed, and verification requirements, as well as the range and flexibility of account types offered to suit different trading needs. | |
| 10% | Evaluates the ease, speed, and cost of deposit and withdrawal processes | Deposit methods, withdrawal methods, processing times, fees | |
| 10% | Indicates variety and quality of trading options, including Forex pairs, metals, indices, commodities, stocks, and cryptocurrencies | Range of instruments and markets offered | |
| 7.5% | Evaluates the availability, usability, and security of mobile trading apps | Platforms (iOS/Android), Forex support, 2FA, user ratings, downloads, in-app features (alerts, indicators) | |
| 100% |
Understanding Each Evaluation Metric
Our broker evaluations are anchored in several critical parameters to guarantee a comprehensive and impartial assessment. This section delves into each parameter, offering a detailed understanding of their roles and significance.
Commissions and Fees
We evaluate brokers' fees and spreads by assessing the costs associated with Standard and ECN/Raw spread accounts, including commissions and spreads. Additionally, our evaluation considers extra fees such as deposit/withdrawal charges and inactivity fees.
Each parameter in the "Commissions and Fees" section is assigned a specific score based on defined criteria.
| Floating Spread EUR/USD, avg | ||
|---|---|---|
| Floating Spread EUR/USD, avg |
Criteria
< 1 pip 1 - 1.5 pips > 1.6 pips |
Score
3 2 1 |
| ECN/Raw/Zero Spread and Commission | ||
| ECN/Raw/Zero Spread and Commission |
Criteria
< 3$ per lot ≤ 0.2 pips < 3$ per lot > 0.2 pips > 3$ per lot ≤ 0.2 pips > 3$ per lot > 0.2 pips |
Score
42 2 1 |
| Deposit Fee | ||
| Deposit Fee |
Criteria
No
|
Score
1
|
| Withdrawal Fee | ||
| Withdrawal Fee |
Criteria
No
|
Score
1
|
| Inactivity Fee ($ per month) | ||
| Inactivity Fee ($ per month) |
Criteria
No
|
Score
1
|
| Total Score | ||
| 10 points | ||
| Total Score |
Score
10 points
|
|
Regulation and Safety
The score for this parameter depends on the licenses a company holds, with higher-level licenses earning higher scores. Licenses in multiple jurisdictions further boost a broker's score. Key factors include tier-1 regulation and participation in an investor protection fund, while a long market history is considered but less emphasized.
| Base Score | ||
|---|---|---|
| Base Score |
Condition
Presence of a Tier-1 license Presence of a Tier-2 license Presence of a Tier-3 license Not regulated |
Points
7 5 3 1 |
| Additional Licenses in Other Jurisdictions | ||
| Additional Licenses in Other Jurisdictions |
Condition
Each additional license from a Tier-1 regulator Each additional license from a Tier-2 regulator Each additional license from a Tier-3 regulator |
Points
0.5 0.3 0.2 |
| Market Experience | ||
| Market Experience |
Condition
10 years in the market 5-10 years in the market 3-5 years in the market |
Points
1.5 1 0.5 |
| Maximum Total Score | ||
| 10 points | ||
| Maximum Total Score |
Points
10
|
|
In financial regulation, authorities are classified into three tiers based on their compliance rigor and investor protection measures. This system helps distinguish the most stringent regulators from those with more lenient standards.
Tier-1 Regulators
These are the most trusted regulatory authorities with stringent compliance requirements and strong investor protection measures.
| Regulator | Country | Full Name | Investor Protection Fund |
|---|---|---|---|
FCA
|
United Kingdom | Financial Conduct Authority | Up to £85,000 |
BaFin
|
Germany | Federal Financial Supervisory Authority | Up to €100,000 |
CySec
|
Cyprus | Cyprus Securities and Exchange Commission | Up to €20,000 |
ASIC
|
Australia | Australian Securities and Investments Commission | No specific fund but has stringent consumer protection |
NFA
|
United States | National Futures Association | No specific fund |
JFSA
|
Japan | Japan Financial Services Agency | No specific fund |
CFTC
|
United States | Commodity Futures Trading Commission | No specific fund |
FINMA
|
Switzerland | Swiss Financial Market Supervisory Authority | CHF 100,000 |
CIRO
|
Canada | Investment Industry Regulatory Organization of Canada | CAD 1,000,000 |
MAS
|
Singapore | Monetary Authority of Singapore | No specific fund |
SFC
|
Hong Kong | Securities and Futures Commission of Hong Kong | No specific fund |
SEC
|
United States | Securities and Exchange Commission | Up to $500,000 for SIPA members |
FINRA
|
United States | Financial Industry Regulatory Authority | No specific fund |
CNMV
|
Spain | Comisión Nacional del Mercado de Valores | Up to €100,000 |
FFAJ
|
Spain | Comisión Nacional del Mercado de Valores | Up to €100,000 |
CBI
|
Ireland | Central Bank of Ireland | Up to €20,000 |
Tier-2 Regulators
These regulatory authorities are reputable but have moderately stringent requirements and investor protection measures.
| Regulator | Country | Full Name | Investor Protection Fund |
|---|---|---|---|
FSC
|
British Virgin Islands | British Virgin Islands Financial Services Commission | No specific fund |
MFSA
|
Malta | Malta Financial Services Authority | No specific fund |
DFSA
|
Dubai | Dubai Financial Services Authority | No specific fund |
FSCA
|
South Africa | Financial Sector Conduct Authority of South Africa | No specific fund |
FMA
|
New Zealand | Financial Markets Authority of New Zealand | No specific fund |
SCB
|
Bahamas | Securities Commission of The Bahamas | No specific fund |
FSC
|
Mauritius | Financial Services Commission of Mauritius | No specific fund |
FCMC
|
Latvia | Financial and Capital Market Commission | No specific fund |
Tier-3 Regulators
These are less stringent regulatory authorities with fewer requirements and investor protection measures.
| Regulator | Country | Full Name | Investor Protection Fund |
|---|---|---|---|
VFSC
|
Vanuatu | Vanuatu Financial Services Commission | No specific fund |
FSC
|
Belize | Financial Services Commission of Belize | No specific fund |
FSC
|
Cook Islands | Financial Supervisory Commission, Cook Islands | No specific fund |
FSA
|
Seychelles | Financial Services Authority of Seychelles | No specific fund |
FSA
|
St. Vincent and the Grenadines | Financial Services Authority of St. Vincent and the Grenadines | No specific fund |
The Financial Commission
|
International | The Financial Commission | No specific fund |
User Satisfaction
At Traders Union, we use the Customer Satisfaction Score (CSAT) as a unique metric to gauge user satisfaction. This score is based on the analysis of reviews posted by our global community on each broker's profile page. With over 13 years of collected reviews, we have developed a deep understanding of customer satisfaction across different brokerage companies.
Where:
ni = the number of reviews with i
stars
pi = the points associated with i
stars
i ranges from 1 to 5, representing the star ratings
Using the given star-to-points mapping:
- 1 star = 1 point
- 2 stars = 3 points
- 3 stars = 5 points
- 4 stars = 8 points
- 5 stars = 10 points
Deposit and Withdrawal
This parameter evaluates the ease, speed, and cost-effectiveness of deposit and withdrawal processes. It considers key factors such as the variety of payment methods offered, the availability of multiple base currencies to reduce conversion costs, processing times, and any fees associated with transactions. This comprehensive evaluation allows clients to gauge how efficiently and affordably they can manage their funds with each broker.
Deposit and Withdrawal Options
| Criteria | Points | |
|---|---|---|
| Bank Card | Yes | 1 |
| Bank Wire | Yes | 1 |
| PayPal | Yes | 1 |
| Wise | Yes | 1 |
| Payoneer | Yes | 1 |
| Skrill | Yes | 1 |
| Neteller | Yes | 1 |
| M-Pesa | Yes | 1 |
| BTC | Yes | 1 |
| USDT | Yes | 1 |
| Ethereum | Yes | 1 |
| Maximum | 5 |
Base account currency
| Criteria | Points | |
|---|---|---|
| USD | Yes | 0.5 |
| EUR | Yes | 0.5 |
| GBP | Yes | 0.25 |
| JPY | Yes | 0.25 |
| AUD | Yes | 0.25 |
| CAD | Yes | 0.25 |
| CHF | Yes | 0.25 |
| NGN | Yes | 0.2 |
| ZAR | Yes | 0.2 |
| NZD | Yes | 0.2 |
| INR | Yes | 0.2 |
| XAU | Yes | 0.2 |
| BTC | Yes | 0.2 |
| Other base currencies | Yes | 0.5 |
| Maximum | 3 |
Deposit and Withdrawal Fees
| Criteria | Points | |
|---|---|---|
| Deposit fee, % | No | 1 |
| Withdrawal fee, % | No | 0.5 |
| Withdrawal fee, USD | No | 0.5 |
| Maximum | 2 |
Trading Platforms & Tools
In this section of the broker evaluation methodology, we assessed the breadth and quality of trading platforms and tools. Our analysis focused on four key areas:
-
Platform Availability – We examined the range of trading platforms supported by
the broker, including industry-standard solutions such as MT4, MT5, cTrader, NinjaTrader. We
also evaluated proprietary platforms, integration with TradingView, and accessibility through
WebTrader.
-
Analytical and Automation Tools – This category covers the availability of
built-in indicators, automated trading features, such as expert advisors and strategy builders),
third-party tools like Autochartist and Trading Central, as well as convenience functions like
one-click trading, alerts, and API access.
- Security and Utility Features – We evaluated the implementation of security measures, including two-factor authentication (2FA), and assessed support for enhanced trading infrastructure, such as free VPS hosting.
| Parameter | Criteria | Score | |
|---|---|---|---|
| Supported Trading Platforms | MT4 | Yes | 1 |
| MT5 | Yes | 1 | |
| Proprietary platform | Yes | 1 | |
| TradingView integration | Yes | 0.6 | |
| cTrader | Yes | 0.5 | |
| NinjaTrader | Yes | 0.25 | |
| WebTrader | Yes | 0.25 | |
| Extra tools and services | 2FA | Yes | 1 |
| No. of Indicators | 0 | 0 | |
| 1-10 | 0.4 | ||
| 10-30 | 0.8 | ||
| >30 | 1.5 | ||
| Trading bots (EAs) | Yes | 1.25 | |
| Advanced Alerts | Yes | 0.5 | |
| One-click trading | Yes | 0.5 | |
| Autochartist | Yes | 0.35 | |
| Strategy (EA) builder | Yes | 0.4 | |
| Free VPS | Yes | 0.5 | |
| API | Yes | 0.5 | |
| Trading Central | Yes | 0.4 | |
| Maximum - 10 points | |||
Trading Instruments and Markets
This parameter evaluates the number of trading assets a broker offers across various financial instruments. This includes Forex pairs, metals, indices, commodities, stocks, and cryptocurrencies. It also evaluates the broker’s investment programs, such as access to copy trading.
| Criteria | Points | |
|---|---|---|
| Tradable assets | ≥2.000 | 2 |
| ≤2.000, but >500 | 1.5 | |
| ≤500, but >200 | 1 | |
| ≤200 | 0 | |
| Currency pairs | ≥70 | 2 |
| ≤70, but >50 | 1.5 | |
| ≤50, but > 30 | 1 | |
| ≤30 | 0 | |
| Stocks | Yes | 1 |
| Commodities | Yes | 1 |
| Indices | Yes | 0.5 |
| Crypto | Yes | 0.25 |
| Options | Yes | 0.25 |
| ETFs | Yes | 0.5 |
| Bonds | Yes | 0.5 |
| Copy trading | Yes | 1 |
| PAMM | Yes | 1 |
| Maximum | 10 |
Trading Account Opening
We evaluated the ease of opening a trading account with each broker by analyzing key factors such as minimum deposit, online registration availability, average signup and KYC processing times, and the range of account types offered. This assessment aimed to determine both accessibility for beginners and the flexibility of available account options.
Account opening time and ease
| Criteria | Points | |
|---|---|---|
| Minimum deposit (USD) | ≤200 | 1.5 |
| ≤1000, but >200 | 0.5 | |
| >1000 | 0 | |
| Is the process fully online? | Yes | 1.5 |
| Registration time (min) | ≤15 | 1 |
| ≤30, , but >15 | 0.5 | |
| >30 | 0 | |
| KYC time (wd) | ≤1 | 1 |
| 2-3 | 0.5 | |
| >3 | 0 | |
| Maximum | 5 |
Account types
| Criteria | Points | |
|---|---|---|
| ECN/Raw spread | Yes | 1.5 |
| Standard | Yes | 1 |
| Swap Free (or Islamic) | Yes | 1 |
| Demo | Yes | 1 |
| Cent | Yes | 0.25 |
| Micro lot | Yes | 0.25 |
| VIP | Yes | 0.25 |
| Managed | Yes | 0.25 |
| Maximum | 5 |
Mobile apps
We assess the availability and functionality of the broker’s mobile trading apps for iOS and Android. The evaluation includes support for Forex trading on both platforms, presence of mobile 2FA, user ratings in app stores, total downloads figures, and essential in-app features such as alerts and technical indicators.
| Criteria | Points | |
|---|---|---|
| Android | Yes | 1 |
| iOS | Yes | 1 |
| 2FA | Yes | 1 |
| App store score | 0,05 per each 0.1 point | 0-2points |
| Google play score | 0,05 per each 0.1 point | 0-2points |
| Total downloads | 0.1 per each 10,000 downloads | 0-2 points |
| Mob. Alerts | Yes | 0.5 |
| Mob. Indicators | Yes | 0.5 |
| Max. = 10 points | ||
Our Core Principles
Transparency: We ensure that our evaluation structure is clear and accessible to all. Transparency is vital to build trust and provide clarity in our assessment processes.
Data-Driven Analysis: Our assessments are based on extensive data collected from hundreds of brokers, ensuring accuracy and reliability. We currently evaluate over 250 specific data points, and this list is constantly expanding to enhance the comprehensiveness of our reviews.
Objective Criteria: We use impartial and fair criteria for all our evaluations, avoiding any biases. This objectivity helps maintain the integrity of our reviews.
Focus on Investor and Trader Interests: Our primary aim is to serve the needs and interests of investors and traders. Over the years, we have accumulated a vast database of broker reviews, which play a significant role in our evaluations.
Continuous Improvement: We are committed to constantly improving and refining the information we provide. This includes staying updated with market changes and integrating feedback to enhance our evaluation methods.
Team of Analysts
Our team of analysts is constantly working to improve and refine the information we provide. With a wealth of experience and expertise in the financial markets, they ensure that our evaluations are thorough and up-to-date. You can learn more about our analysts and other team members involved in this work by visiting their profiles:
Analysts
Invited experts
At Traders Union, we often bring in external experts and editors to evaluate brokers, ensuring a higher quality and more comprehensive assessment. This approach leverages diverse perspectives to enhance the accuracy and reliability of our broker reviews.
Experts and employees who are not listed in this section may also participate in the work.
How is the analysis of the results obtained?
To derive a common assessment score for each broker, our Traders Union experts created a unique script that processes meticulously categorized data. This script analyzes parameters such as broker reliability, trading conditions, customer support, and regulatory compliance using advanced algorithms. The resulting score determines each broker's rank in our rating system, ensuring unbiased, transparent, and consistent evaluations, thus providing traders with a reliable resource for informed decision-making.
FAQs
How many people are working on checking the performance of brokerage companies and forming a rating of Forex brokers?
The staff of the analytical department of the Traders Union has 15 employees who, based on the results of each reporting period, inspect companies, and form the current rating of Forex brokers.
How long does it take to calculate results for one broker?
A detailed analysis of all categories of criteria for one broker takes three hours. We carry out this check regularly on more than 200 companies – this represents valuable time savings we are working hard to save you.
How often do brokers check and update the Traders Union rating?
This process is carried out regularly every month.
