Recently, many independent ratings of Forex brokers have appeared on the Internet, each of which convinces traders of its transparency and open-mindedness. True, the method of calculating ratings remains unknown, and the results of each of them for some reason are radically opposite. Can you trust such ratings and how to determine the fairness of the rating, read on.
Forex brokers rating: to believe or not to believe?
At a time when several brokers seem to be the same in all parameters, an independent Forex broker rating can be a decisive factor. Theoretically, it is formed on the basis of the opinions of traders, the ratio of the number of positive and negative reviews, opinions of experts in the field of trading and analysts. Experts evaluate each company and, according to certain criteria, score the corresponding points.
Broker evaluation criteria:
- trading conditions: minimum deposit amount, types of accounts, conditions for depositing and withdrawing money, availability of commissions, number of assets;
- regulation and regulatory compliance;
- honesty and transparency of the conditions of the offer and the broker’s work in general;
- technical support of transactions: order processing speed, lack of requotes and slippage, type of order execution, etc .;
- functionality and no trade restrictions;
- unique features: own platform, trading signals, social trading;
- availability of bonus programs, promotions, trading tournaments;
- professionalism and customer service support broker
The problem of forming broker ratings is that, according to each criterion, traders can have a fundamentally opposite opinion, and certainly not the same as expert opinion. Subjectivity in the ranking of brokers can lead to the fact that the most advertised (well-known) broker will become the leader of the rating, while an honest and reliable company will not even get into the TOP-10. A striking example is one of the companies that received a license from the Central Bank and appears in the TOP-5 of many independent Forex ratings. But this is one of the few companies against which collective claims are being considered in courts.
Rules for working with independent ratings of Forex brokers:
- Be guided by the information of several rating sites comparing the criteria for rating and ranking;
- Compare traders reviews about the leaders of the rating, paying attention to those where there is any specifics and supporting facts. It is best to be guided by trading forums, as reviews are often customized;
- open demo accounts with several brokers from one asset at the same time test them, thereby confirming or disproving the rating rating;
Conclusion. An independent Forex broker rating can only be considered objective when its formation method and sample size are made publicly available, and the rating itself is confirmed, for example, by the regulator (or it is formed by them). There are such ratings on the stock market (for example, an MB rating), but not on Forex yet. Therefore, information from ratings cannot be fundamental when making a decision, since most of the ratings work exclusively for marketing purposes.