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Forex Rating Formula v.4.0

FxPros Forex Broker Rating Section

Forex Rating Formula“The FxPros Forex Broker Ratings are based on Rating Brokers Formula v.4.0”

The complete series of Rating Formulas was introduced by our partner site TradingCenter.org. This innovative rating method aims to provide a new and reliable way of rating the Financial Industry. And that means an objective and reliable way of rating brokerage services. Many versions of the rating formula have been published already and they are designed to fit the special needs of Forex and Binary Options traders.

The Rating Section of FxPros.net is made using the 4th version of the formula, which exclusively focuses on rating Forex Brokers.


The 4-Factor Model behind the Rating Formula v.4.0

The series of Rating Formulas by TradingCenter.org represents a brand new way of rating financial services. Most ratings found on the internet today are made by users (User Ratings). Based on research, more than half (50%) of these user ratings are fake. Brokerage companies have a huge incentive to hire outsiders to rate them favorably and rate their competitors unfavorably.


The series of the Rating Formula is designed to solve that problem by providing a 100% objective framework for rating Financial Services (Brokers). Two categories of brokerage services have been rated so far, Forex Brokers and Binary Options Brokers. The Rating Formula v5.0 is developed to rate Forex Brokers using innovative features.

“The Formula is based on 4 Important Aspects when Trading Forex”


(1) Safety of Trading Funds

■ Weight 26.00%

1.1 Regulation (trustworthy regulatory bodies)

1.2 Corporate Base (in which country is the broker domiciled?)

1.3 Years in the market (more years in the market are rated favorably)

1.4 Segregated Client Account (in trusted banking institutions)

1.5 Other Online Ratings (for differentiation)


1.6.1 Corporate Size Factor (brokers with a great number of trading accounts are rated favorably as size matters in the financial industry)


(2) Trading Cost

■ Weight 28.00%

2.1 Spread on EUR/USD (tight spreads get better ratings

2.2 Spread on GBP/USD

2.3 Spread on USD/JPY

2.4 Trading Commissions Charged (on the same account type as the trading spreads are rated)

2.5 Funding Commissions (brokers charging commissions get zero rating)

2.6 Maintenance Fees (brokers charging maintenance fees get zero rating)


2.7.1 Execution Type (ECN and STP brokers get better ratings than Market Makers)


FxPros Forex Broker Rating Section

(3) Trading Options

■ Weight 26.00%

3.1 Forex Asset Index (wider asset indexes get better ratings)

3.2 CFD Trading (the availability of CFD assets is rated favorably)

3.3 Demo Account Availability

3.4 Rate of Leverage

3.5 Level of Rebate / Bonus (only withdrawable rewards are rated)

3.6 Minimum Deposit Level

3.7 Available Deposit Methods (brokers offering a wide variety of funding methods get better ratings)

3.8 Available Withdrawal Methods


3.9.1 Asset Index with more than 100 Forex Pairs

3.9.2 Offering Interest on Deposit

3.9.3 Trading Contests Availability


(4) Technological Efficiency

■ Weight 20.00%

4.1 Trading Platforms Availability (brokers offering a wide variety of trading platforms are rated favorably)

4.2 Slippage on Execution (low slippage gets a better rating than high slippage)

4.3 Automated Forex Trading Availability (it is important for many traders)

4.4 MT4 / MT5 Platform Availability (Metatrader is the Forex Industry's standard trading platform)

4.5 Mobile Apps Availability

4.6 Scalping / Hedging Availability (brokers allowing scalping and hedging get better ratings)

4.7 Quality of Customer Service


4.8.1 PAMM Account Availability (the ability to get your money managed by professionals)

4.8.2 API Availability (it is important to some professional traders)


» The full Rating Formula v.4.0 at TradingCenter.org


Rating Forex Formula v.4.0 (c)

Giorgos Protonotarios, Financial Analyst

for FxPros.net (c)