Trading Center

Forex Brokers Rating Formula v.4.0

FOREX RATING FORMULA v.4.0.

"A BRAND NEW WAY OF RATING FINANCIAL SERVICES"

 

Introduction to the new TradingCenter’s Rating Formula v.4.0.

“Seeking an Objective Way to Rate the World's Forex Brokers -v.4.0 is the most Complete Rating Formula ever Build by Trading Center”

The Problem and the Solution

Since the birth of the Internet all financial ratings are made by users (user ratings). Unfortunately more than half (50%) of these user ratings are fake. And that is because there is a huge commercial incentive for any financial company to hire outsiders in order to rate them favorably and / or rate other competitors unfavorably. Evidence comes from the fact that most of these user ratings are given excessive values (i.e. 5/5 or 0/5). Of course, if you are very experienced with Forex reviews, you may understand which of these user ratings are real. The problem is that Total User Ratings found in the internet today are the Average Rating Value of usually many thousands of individual ratings, and evaluate them one by one is nearly impossible and certainly not accurate. Additionally, the new era of web robots will make real user ratings / reviews even more difficult. Favorable ratings attract more accounts on behalf of a financial company so there is an important motive for them to hire somebody to do that job. Of course many companies wouldn’t get involved with fake ratings, but the problem is that we don’t know which these good companies are. Even if we knew these good companies -their competitors could still manipulate their overall ratings. If we take into account all these factors we may conclude that the current status of the user ratings in the Financial Services is not good at all, and shows the potential to become even worse in the future. The series of Rating Formulas introduced by TradingCenter.org aims to solve that problem by providing an objective way of rating financials. This way of rating allows adjustments in order to adapt the special needs of each trader, while it is focusing on all beginners, semi-advanced and advanced traders. The idea behind the rating formula is simple while its implementation is based on a 4-factor mathematical model. Each factor represents an important need for almost all traders: -1- Safety of Funds | -2- Low Cost Transactions | -3- Wide Variety of Trading Options | -4- Technological Efficiency

Mission: “Be Safe, Pay Low Cost, use State-of-the-Art-Trading Technology”


The Rating Brokers Formulas History

The first, the second and the fourth version of the Rating Formula are applied on Forex Brokers. The versions 3.0 and 3.5 are applied on Binary Option Brokers. Forex Brokers Rating Formula –V.4.0 (presented below) | Binary Option Brokers Formula -V.3.5, at BinaryValue.com | Binary Option Brokers Formula -V.3.0, at BinaryValue.com | Forex Broker Rating Formula –V.2.0, at TradingCenter.org | Forex Broker Rating Formula –V.1.0, at OnlineForex.Biz


The Core Rating Mechanism of Rating Formula v.4.0.

The Trading Center’s Rating Formula is based on what makes a Broker the best choice for the average trader. A certain weight is given in each factor while the sum is kept at 100% (maximum rating):

(1) Safety of Funds (26%) (Level of Regulation, Years in the Market, Headquarters Base etc)

(2) Transaction Cost (28%) (Trading Commissions, Spreads on Majors, Maintenance Fees etc)

(3) Variety of Trading Options (26%) (Forex Asset Index, Fund Methods, Rebate, Leverage etc)

(4) Technological Efficiency (20%) (Platforms, Mobile Trading, MT4, Automated Trading, Slippage etc)

Here is an Analysis of all the 4 factors -forming altogether a Rating of 100%.

 

“Seeking for the Perfect Forex Broker”

FOREX RATING FORMULA v.4.0. -A BRAND NEW WAY TO RATE FINANCIAL SERVICES


-1- Safety of Funds, Weight 26%

All Financial companies (investment firms, venture capitals, brokers, dealers) tend to accept more risk than they can really afford. This is happening when the Potential Profit of a corporate decision is larger than the incorporated risk. So historically, financial companies tend to accept high levels of risk and that exposes them to a high possibility of collapse. This is exactly what happened during the financial crisis of 2007-2008 in the US and after in the rest of the world. But if you are a trader you don’t care about your broker’s potential profit, you only care about the level of the risk that he tends to accepts. Risk affects directly the safety of trading funds. Financial companies maintaining their corporate risk low and ensuring the safety of their client funds are rated favorably. The version v.4.0 along with regulation, headquarters base and the years in the market consist new parameters such is the existence of Segregated / Bank Accounts.

Table: Safety of Funds Analysis

1. SAFETY OF FUNDS

WEIGHING ANALYSIS

MAXIMUM WEIGHT

1.1 Regulatory Bodies

Lower-to-Higher Rating Weight.

FSC (BVI) = 1.0%, | CYSEC = 3.0%, | FFMS = 3.0%, | RAFMM = 3.0%, | CBI = 4.0%, | ASIC = 4.0%, | FSC (NZ) = 4.0%, | FSA (UK) = 6.0%, | BAFIN = 6.0%, | NFA = 6.0%, | CFTC = 6.0%, | FINMA = 8.0% | and MiFID = +4.0%

12.0%

1.2 Headquarters Base

General Offshore = 0%, Cyprus, Israel, Latvia = 2.0%, Ireland, Spain, Italy, Belgium = 3%, Canada, Australia, New Zeeland = 4.0%, USA, UK, Germany, Scandinavian Counties, France, Switzerland = 5.0%

5.0%

1.3 Foundation (Years in the market)

0-1 Years = 0 %, 2-5 Years = 2.0 %, 5-10 Years = 4.0 %, 10+ Years = 5.0 %

5.0%

1.4 Segregated / Bank Accounts

Yes = 2.0 %, No = 0.0 %

2.0%

1.5 Web Ratings (Used for differentiating results)

ForexPeaceArmy Rating = 1.0 %, | EarnForex Rating = 1.0 %

2.0%

TOTAL=

26.0%

1.6 ADJUSTMENTS

Adjustment of Factor-1 by keeping the Overall Rating at maximum 26 %

 

1.6.1 Size Factor

More than 1 Million Active Traders = +1.0 %, No = o%

+1.0%

 

FACTOR-1 EXPLANATION:

1.1 Regulation, (12%) -Rating Method: Accumulation

High regulation by a trusty authority can reduce the risk of your brokerage partner to misbehave. Furthermore in developing countries market supervisors control Forex Brokerage Companies and impose them with high penalties if they are proven to operate in a risky or unfavorable way. Regulation by authorities in offshore countries on the other hand can not be fully trusted. Regulation is an important issue for all trading styles and that is how it is treated by the rating formula (12%).

1.2 Headquarters Base, (5%) -Rating Method: Selection

The country where a brokerage company is based determines in a high extend the reliability of its balance sheet. Fees and penalties imposed by supervising authorities provide a strong incentive for Forex Brokers to operate legitimately without risking their client funds. In addition, when we rate countries as a headquarters base we take into consideration also their overall macroeconomic profile.

1.3 Years in the Market, (5%) -Rating Method: Selection

The long existence of a Forex company in the market means that this company operates under a successful business model and that it is proven capable of managing enterprising risk over time. Time is important as concerns the financial industry.

1.4 Segregated Bank Accounts, (2%) -Rating Method: Selection

Brokers keeping client funds in segregated bank accounts are welcomed and are rated favorably by the rating formula. Transparency is an important issue when many transactions take place.

1.5 Web Ratings, (2%) -Rating Method: Accumulation

This rating parameter is used in order to differentiate the overall results. Two popular ratings are used: ForexPeaceArmy ratings and EarnForex ratings. These kinds of ratings are made by users. Sometimes user-ratings are fake and that is why this particular factor receives weight of just 2% and not more.

Tip: “Differentiation is Power when your Industry is the Financials”

1.6 Adjustments

Adjustments are made in the computation of all the 4 factors incorporated in the new Rating Formula v.4.0. Note that even and after the adjustment made, the Factor-1 rating remains at a maximum weight of 26%.

1.6.1 Company Size, (+1%) -Rating Method: Adjustment

In the computation of the Factor-1, the adjustment made concerns the size of the broker. Large brokers tend to fall harder than others, and thus those brokers with a client base larger than 1 million active traders, are rated favorably.

Note: In future versions it is possible that direct data from the balance sheet of Forex brokers will be extracted and rated. And that means information such is the annual profitability and / or the exposure in corporate debt as a proportion of annual revenues. For now, we prefer to rate only aspects of Funds Safety that offer us the chance to collect all the necessary data reliably.


RATING FACTOR-1- EXAMPLES

i) A Forex Broker based in the UK that was founded in the year 2000 and that is regulated by FSA and BaFIN, receives 22.0%. Now, if this broker offers segregated bank accounts and receives web ratings of 1%, gets an additional 3.0%, Grand Total of 25.0%%.

ii) A Forex Broker based in British Virginia Islands that was found in 2010 and that it is regulated by FSC (BVI) receives 6.0%. Now, if this broker doesn’t offer segregated bank accounts and receives web ratings of 1%, it gets a Grand Total of 7.0%.

The difference between these two brokerage ratings is huge (18.0%), as huge is the risk that you will accept if you choose broker (ii).

 

-2- Trading Cost & Similar, Weight 28%

Table: Factor Analysis

2. TRADING COST & SIMILAR

WEIGHING ANALYSIS

MAXIMUM WEIGHT

2.1 Typical / Minimum Spread on EURUSD

EUR/USD Spread (Smaller or Equal):

< 0.3 pip = 8.0%, | < 0.4 pip = 7.5%, | < 0.5 pip = 7.0%, | < 0.6 pip = 6.5% | < 0.7 pip = 6.0%, | < 0.8 pip = 5.5%, | < 1.0 pip = 5.0%, | < 1.25 pip = 4.5, | < 1.5 pip = 4.0%, | < 1.75 pip = 3.5%, | > 2.0 pip = 3.0%, | < 2.5 pip = 2.0%, | < 3.0 pip = 1.0%,

Filter: If trading spread is more than 5 pips then 2.1 & 2.4 ratings are forced to zero {0} value

8.0%

2.2 Typical / Minimum Spread on GBPUSD

GBP/USD Spread (Smaller or Equal):

< 1.0 pip = 5.0%, | <1.25 pip = 4.0%, | < 1.5 pip = 3.0%, | < 1.75 pip = 2.5%, | < 2 pip = 2.0%, | < 2.25 pip = 1.5%, | < 2.5 pip = 1.0%

5.0%

2.3 Typical / Minimum Spread on USDJPY

USD/JPY Spread (Smaller or Equal):

< 1.0 pip = 4.0%, | <1.25 pip = 3.5%, | < 1.5 pip = 3.0%, | <1.75 pip = 2.5%, | < 2 pip = 2.0%, | < 2.5 pip = 1.0%

4.0%

2.4 Trading Commissions Charged

 

 

Commissions (Smaller or Equal)

No Commissions = 7% | Commissions < $5 / lot = 3% | Commissions < $8 / lot = 1% | Higher Commissions = 0%

Filter: Higher commissions than $20 / lot will force 2.1, 2.2, 2.3 & 2.4 ratings to zero (0) value

7.0%

2.5 Deposit / Withdrawal Commissions

No = 2.0 %, | Yes = 0 %, | 1-Free / Month = 0.5 %

2.0%

2.6 Maintenance / Inactive Account Fees

No = 2.0 %, | Yes = 0 %

2.0%

 

TOTAL=

28.0%

2.7 ADJUSTMENTS

Adjustment of Factor-2 by keeping the Overall Rating at maximum 28.0%

 

2.7.1 Execution

ECN = +2.0 % / STP = +1.5 % | Market Makers = +0.0%

+2.0%

2.7.2 SWAP Charges

Future Versions

 

 

FACTOR-2 EXPLANATION:

2.1 – 2.2 - 2.3 Typical / Minimum Spread on EUR/USD, GPB/USD and USD/JPY (17%) -Rating Method: Selection

Trading Cost is very crucial for every trading style. For rating the size of the spread, the most popular Forex currencies are used: EUR/USD, GPB/USD and USD/JPY. These 3 pairs enjoy the highest liquidity in the market and offer by far the best terms of trading. If a broker is expensive on those 3 pairs he will be probably expensive in his whole asset index. To make ratings more reliable and more comparable we prefer to use as inputs Fixed Spreads without Commissions (when and if they are available by Forex brokers).

Filter: A filter was added on 2.1

If the trading spread exceeds 5.0 pipsthen automatically the 2.2 rating has also a zero (0) value. This is happening because a very high spread eliminates the advantage of not charged trading commissions.

2.4 Commissions Charged, (7%) -Rating Method: Selection

Some Brokers charge trading commissions, some don’t. Brokers that are charging low commissions are rated beneficially. In addition, when measuring commissions charged we choose the exact same account type as when measuring the spread charged in 2.1, 2.2 and 2.3 ratings.

Filter: A filter was added on 2.4

If trading commissions on 2.4 rating are very high {more than $20/lot traded} then the 2.1, 2.2 and 2.3 ratings are forced to zero (0) values. This is happening because very high commissions are eliminating the advantage of low or even zero spreads that a Forex broker may offer.

2.5 Deposit / Withdrawal Fees and Commissions, (2%) -Rating Method: Selection

Withdrawal and Deposit commissions are reducing trading funds and that is why they are considered as an important issue. We don’t like deposit / withdrawal commissions so we rate them unfavorably.

2.6 Maintenance / Inactive Account Fees, (2%) -Rating Method: Selection

Some brokers are charging fees for maintenance and commissions for inactive accounts. This means extra cost for traders.

2.7 Adjustments

2.7.1 Execution, (+2%) -Rating Method: Adjustment

The type of execution is very crucial as it affects slippage and the size of the spread. ECN brokers are usually offer the best trading terms but STP brokers are not bad also.

2.7.2 SWAP Values

The level of SWAP charged by a broker affects mainly SWING and Position Traders. This factor is difficult to be measured and it will be used only in future versions of the rating formula.

RATING FACTOR-2- EXAMPLES

i) An ECN Forex Broker who provides 2 pips spread on EUR/USD, 3 pips spread on GBP/USD and 3 pips spread on USD/JPY by not charging commissions or any kind of fees receives 16.0% rating.

ii) A Market Maker Forex Company which provides 2 pips spread on EUR/USD, 3 pips spread on GBP/USD and 3 pips spread on USD/JPY by charging high trading commissions plus receives 3.0%. If this brokers charges withdrawal fees but not maintenance commissions, receives an extra 2.0% rating. Grand Total = 5%.

 

-3- Trading Options, Weight 26%

Table: Trading Options

3. TRADING OPTIONS

WEIGHING ANALYSIS

MAXIMUM WEIGHT

3.1 Available Number of Forex Assets

 

45+ Currency Pairs = 8.0%, | 40+ Currency Pairs = 7.0%, | 35+ Currency Pairs = 6.0%, | 30+ Currency Pairs = 5.0%, | 25+ Currency Pairs = 4.0%, | 20+ Currency Pairs = 3.0%, | 15+ Currency Pairs = 2.0%, | 10+ Currency Pairs = 1.0%, | Less than 10 pairs = 0%

8.0%

3.2 CFD Trading / Spot Metals

CFD Trading = 2.0 % | Only Spot = 1.0 % | Nothing = 0%

2.0%

3.3 Demo / Practice Account

Yes = 2.0 %, No = 0.0 %

2.0%

3.4 Leverage

 

Leverage Rate (Higher or Equal):

>100:1 = 2.0%, | > 75:1 =1.5%, >50:1 = 1.0%

2.0%

3.5 Bonus / Rebate

 

■ Bonus (Higher or Equal):

>50% = 6%, | >40% = 5%, | >30% = 4%, | >20% = 3%, | >15% = 2%, | >10% = 1%

■ Rebate (Higher or Equal):

>30% = 6%, | >25% = 5%, | >20% = 4%, | >15% = 3%, | >10% = 2%, | >5% = 1.0%

6.0%

3.6 Minimum Deposit

(Smaller or Equal):

Min Deposit < $500 = +1%, | Min Deposit < $1,000 = +0.5%

1.0%

3.7 Deposit Methods

For each deposit method available = 0,5%, max = 5 methods

2.5%

3.8 Withdrawal Methods

For each withdrawal method available = 0,5%, max = 5 methods

2.5%

 

TOTAL=

26.0%

3.9 ADJUSTMENTS

Adjustment of Factor-3 by keeping the Overall Rating at maximum 26.0 %

 

3.9.1 More than 100 Currency pairs

Yes = 1.0 % / No = 0 %

+1.0%

3.9.2 Interest on Deposited Funds

Yes = 0.50 %, No = 0.0 %

+0.50%

3.9.3 Trading Competitions / Championships

Yes = 0.25 % / No = 0 %

+0.25%

 

FACTOR-3 EXPLANATION:

3.1 Available Number of Currency Pairs, (8%) -Rating Method: Selection

The higher the number of currency pairs available, the higher the potential for traders to exploit trading opportunities in the Forex Market. This is valid for all trading styles.

3.2 CFD and Spot Metals Trading, (2%) -Rating Method: Selection

Furthermore, the wider the variety of trading assets and tools (CFD trading etc) indicates a Forex Broker company that tries today to expand its services and adapt on more customer needs.

3.3 Demo / Practice Account, (2%) -Rating Method: Selection

The existence of Demo Accounts helps traders to make the right choices without loosing precious time. Every Forex Broker that respects himself must offer a demo account.

3.4 Leverage, (2%) -Rating Method: Selection

The magnitude of the capital leverage adds extra capabilities to Forex traders and that is why it is considered as an important parameter of quality Forex brokerage. Of course high leverage means high risk that is why we rate maximum brokers offering leverage of 100:1. Higher leverage than that, should be better avoided.

3.5 Bonus / Rebate, (6%) -Rating Method: Selection

The higher the bonus or rebate offered, the larger the available funds. We rate them the same but rebates is the choice of pro Forex traders.

3.6 Minimum Deposit, (1%) -Rating Method: Selection

The smaller the minimum deposit the easier a trader can ‘test’ a Forex broker on real conditions.

3.7 Number of Deposit Methods, (2.5%) -Rating Method: Accumulation

The wider the variety of Deposit Methods the more suitable a broker becomes to his customer needs. Traders who are able to fund their accounts with their custom method save precious time.

3.8 Number of Withdrawal Methods, (2.5%) -Rating Method: Accumulation

Variety of withdrawing methods is of equal importance.

3.9 Adjustments

3.9.1 More than 100 Currency pairs (+1%) -Rating Method: Adjustment

Brokers who are able to offer such an extensive currency index are rated favorably, but in reality only a few brokers are able to offer more than 100 Forex pairs.

3.9.2 Interest on Deposited Funds, (+0.50%) -Rating Method: Adjustment

This is a very interesting account option that unfortunately is offered by only a few Forex Brokers.

3.9.3 Existence of Trading Competitions / Championships, (+0.25%) -Rating Method: Adjustment

A trading competition (Real / Demo) can provide easy money for traders, but only a few traders actually participate so the rating weight of this factor remains very low (+0.25%)


RATING FACTOR-3- EXAMPLES

i) A Forex Broker providing 50 Forex pairs, plus CFD trading and a demo account, receives 12%. Now, if that broker provides leverage at 50:1 and a deposit bonus of 30% receives an extra 5%. If that broker provides 4 deposit and 4 withdrawal methods and minimum deposit of $1,500, receives an additional 4%. And according to the adjustments made, if that broker offers a trading championship but no interest at funds, receives an additional 0.25% rating. Grand Total rating of 21.25%.

ii) A Forex Broker providing 12 Forex pairs, without CFD trading but with a demo account, receives 3%. If it provides leverage at 100:1 and a deposit bonus of 40% receives 7%. If 2 deposit and 2 withdrawal methods are available and the minimum deposit is $100, receives an additional 3%. And according to the adjustments made, if that broker offers no contests and no interest on funds, receives no extra rating. Grand Total rating of 13.00%.

 

-4- Technological Efficiency & Innovation, Weight 20%

The existence of a technological efficient trading environment is certainly a crucial issue when trading Forex online. Efficient technology makes trading more enjoyable and more profitable, especially as concerns intraday trades. Furthermore, a broker that invests today to make his services more technological advanced means a broker with a long-term perspective and a customer-oriented business philosophy.

Table: Technological Efficiency & Innovation

4. TECHNOLOGY

WEIGHING ANALYSIS

MAXIMUM WEIGHT

4.1 Number of Available Platforms

Each Supported Platform = 1.0%, max = 5 platforms

5.0%

4.2 Slippage

Slippage on Execution (Smaller or Equal):

Slippage < 0.5 pip = 4.0% | Slippage < 0.75 pip = 3.5% | Slippage < 1 pip = 3.0% | Slippage < 1.25 pip = 2.5% | Slippage < 1.5 pip = 2.0% | Slippage < 1.75 pip = 1.5% | Slippage < 2.0 pip = 1.0%

4.0%

4.3 Automated Trading (Expert Advisors)

Yes = 2.0 % / No = 0 %

2.0%

4.4 MT4 / MT5 Availability

Yes = 2.0 % / No = 0 %

2.0%

4.5 Mobile Trading

Each Supported Device = 0.50 % (iPhone, iPad, Android, Windows Mobile, Blackberry), max = 4 devices

* Special HTML5 Apps that are covering all devices = 2.0 %

2.0%

4.6 Scalping / Hedging

Yes both = 1.0 % | Yes only Hedging or Scalping = 0.5% | No = 0 %

1.0%

4.7 Customer Service

24/7 = 1.0 %, | 24/6 = 0.5 %, | 24/5 = 0 %, | email = 1.0%, | Phone = 1.0 %. | Live Chat = 1.0 %, | Skype = 0.5 %, | Call-Back = 0.5 %

4.0%

 

TOTAL=

20.0%

4.8 ADJUSTMENTS

Adjustment of Factor-4 by keeping the Overall Rating at maximum 20.0 %

 

4.8.1 PAMM Managed Accounts

PAMM = 0.5 % / Simple Managed = 0.25%, No = 0 %

+0.5%

4.8.2 API Trading

Yes = 0.5 % / No = 0 %

+0.5%

 

FACTOR-4 EXPLANATION:

4.1 Number of Available Platforms, (5%) -Rating Method: Accumulation

A wide variety of trading platforms provides traders with more options.

4.2 Slippage, (4%) -Rating Method: Selection

Execution delays and re-quotes are certainly some of the worst enemies of Short-Traders. Furthermore, Position and Swing Traders can also be harmed by execution delays. Someone who trades in the long-run has to enter in the short-run. The timing of that entrance usually occurs after some important news have ‘triggered’ a trade. Exactly at that time, high slippage and delays can lead swing-traders to pay very high entrance premiums.

4.3 Automated Trading (Expert Advisors), (2%) -Rating Method: Selection

The ability to receive signals from Expert Advisors (i.e. Zulu Trade and Tradency's Mirror Trader) is an important trading feature.

4.4 Mobile Trading, (2%) -Rating Method: Accumulation

Mobile trading is not just a trend, it is the future of trading.

4.5 MT4 / MT5 Availability, (1%) -Rating Method: Selection

MetaTrader platform is a clear standard in the Forex industry.

4.6 Scalping and Hedging, (1%) -Rating Method: Selection

The ability to scalp Forex currencies is an issue important for only a few traders, and that is why the total weight of this sub-factor is just 1%.

4.7 Customer Service, (4%) -Rating Method: Accumulation

Online services require the existence of a high-quality customer service. We rate 24/6 and 24/7 customer service, and add rating points to the existence of email, Phone, Call-Back, Skype and Live Chat.

4.8 Adjustments

4.8.1 PAMM / Managed Accounts, (0.5%) -Rating Method: Adjustment

Managed accounts have become very popular nowadays so we rate their existence favorably. We rate PAMM with maximum +0.5% and simple Managed Accounts with +0.25%.

4.8.2 API Trading, (0.5%) -Rating Method: Adjustment

The availability of API trading indicates furthermore that a Forex Broker focus on state-of-the-art trading technology.

 

RATING FACTOR-4- EXAMPLES

i) A Forex Broker providing 5 trading platforms, including MT4, with slippage 1.5 pip, full mobile trading and by enabling automated trading and scalping / hedging receives 14.0%. In addition if that broker offers phone, email, 24/6 and live chat receives an extra 3.5%. Finally if it provides PAMM Accounts but no API trading receives +1%. Grand Total Rating is 18.5%.

ii) A Forex Broker providing 2 trading platforms, including MT4, with slippage 2.0 pip, supporting 2 mobile devices and by rejecting automated trading, scalping and hedging receives 6.0%. In addition if that broker offers email, 24/5, phone and live chat it receives an extra 3.0%. If that broker provides simple Managed Accounts but not API trading receives an extra +1%, from adjustments made. Grand Total Rating is 10.0%.


If we sum the results of Rating Factors 1, 2, 3, and 4 we are able to calculate the Overall Broker's Rating.

FORMULA v.4.0 TOTAL RATING

Factor-1: Safety of Trading Funds (26.0%) +

Factor-2: Overall Trading Cost (28.0%) +

Factor-3: Available Trading Options (26.0%) +

Factor-4: Technological Efficiency (20.0%)

= 100%

 

Forex Formula 4 Rating Results and Comparisons

The first rating results of the Forex Broker Formula v.4 are published on the affiliated FxPros.net.

FX BROKER INDIVIDUAL RATING FACTOR 3 TRADING LEVEL FULL RATING
  Total Rating Safety Cost Options Technology Beginners Advanced FxPros  
XEM 80.76% 81.8% 71.43 100.00% 67.5% 71.6% 72.7% 68.99% XEM
Liquid Markets 83.38% 81.3% 78.6% 91.4% 82.5% 71.0% 82.2% 84.7% LQD Markets
Alpari UK 79.40% 96.7% 60.7% 85.6% 75.0% 72.5% 75.7% 75.3% Alpari
Hot Forex 77.78% 63.6% 66.0% 97.1% 87.5% 80.6% 81.8% 78.9% HotForex
AvaTrade 76.47% 84.5% 58.9% 92.3% 70.0% 70.1% 66.7% 60.4% AvaTrade
Dukascopy Europe 76.25% 74.0% 83.9% 62.5% 86.3% 74.6% 78.1% 79.7% Dukascopy Europe
Fx Open 75.82% 77.2% 58.9% 89.4% 80.0% 66.9% 72.7% 74.6% FxOpen
Insta Forex 65.46% 47.9% 44.6% 100.00% 72.5% 55.0% 62.3% 63.4% InstaForex
+500 63.92% 68.9% 58.9% 88.5% 32.5% 62.6% 52.4% 43.6% Plus500
eToro 59.71% 84.5% 41.1% 54.8% 60.0% 60.4% 55.4% 49.5% eToro

 

Here are is the directory for the Binary Option Brokers Ratings using the version 3.5 of the Formula:

Options Brokers Dir, using V.3.5 at BinaryValue

 

Final Words Towards the Future

The idea, and the implementation, of this series of Rating Formulas is unique, but it has still a long way to go before it becomes completely optimized. Thinking at the future and given the upcoming problem of the web robots, this way of Rating Financials will become an industry standard. The reason is that it can help traders to choose better brokers and the industry to become a ‘SAFER’ place for everyone, including the descent Brokerage Companies which dislike this dirty ‘game’ of user ratings.

__________________________

Giorgos Protonotarios

Financial Analyst –Web Projects


L FOREX COMPARISONS

• COMPARE Forex Brokers CFD Brokers Binary Option Brokers □ Forex Signal Providers    

 

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