Forex Rating Formula v.4.0

FxPros Forex Broker Ratings Based on the Proprietary Rating Brokers Formula v4.0.

This advanced rating model was originally developed by Giorgos Protonotarios and introduced by our partner site, TradingCenter.org. Designed to bring transparency and objectivity to financial industry evaluations, the Rating Brokers Formula offers a systematic and reliable approach to assessing brokerage services, specifically tailored for Forex and Binary Options traders.

• FxPros.net adopts the 4th version of the Rating formula, purpose-built to rate Forex Brokers exclusively.

The 4-Factor Model of the Rating Formula v4.0

Unlike traditional user-generated broker ratings, many of which are prone to manipulation, the Rating Brokers Formula ensures a 100% objective evaluation framework. Research indicates that over 50% of online user ratings are unreliable, often influenced by broker-driven campaigns to boost their own scores or damage competitors.

This formula aims to resolve that problem by using verifiable data across four critical dimensions of the Forex trading experience:

1. Safety of Trading Funds

Weight: 26%

• 1.1 Regulation – Credibility of regulatory oversight

• 1.2 Corporate Domicile – Country of registration

• 1.3 Market Tenure – Broker's years in operation

• 1.4 Segregated Client Accounts – Held with reputable financial institutions

• 1.5 Independent Ratings – Other verified online sources

Adjustments:

 • Corporate Size Factor – Brokers with a large client base are rated more favorably due to perceived financial stability

2. Trading Cost

Weight: 28%

• 2.1 – 2.3 Spread Analysis – Tight spreads on EUR/USD, GBP/USD, USD/JPY

• 2.4 Trading Commissions – Assessed on the same account type as spread evaluation

• 2.5 Funding Commissions – Zero rating for brokers charging deposit/withdrawal fees

• 2.6 Maintenance Fees – Brokers charging inactivity or maintenance fees receive a zero rating

Adjustments:

 • Execution Type – ECN and STP brokers receive better scores than Market Makers

3. Trading Options

Weight: 26%

• 3.1 Asset Index – Diversity of Forex pairs

• 3.2 CFD Offering – Inclusion of CFDs as a trading option

• 3.3 Demo Accounts – Availability for practice and testing

• 3.4 Leverage Levels – Range of leverage offered

• 3.5 Bonus Programs – Only withdrawable rewards are considered

• 3.6 Minimum Deposit – Favoring low entry barriers

• 3.7 – 3.8 Payment Methods – Variety in deposit and withdrawal options

Adjustments:

 • Extensive asset indexes (100+ pairs)

 • Interest on deposits

 • Trading contests availability

4. Technological Efficiency

Weight: 20%

• 4.1 Platform Variety – Availability of multiple trading platforms

• 4.2 Execution Slippage – Lower slippage scores higher

• 4.3 Automated Trading – Support for algorithmic trading

• 4.4 MT4/MT5 Support – Availability of MetaTrader platforms

• 4.5 Mobile Trading Apps

• 4.6 Scalping and Hedging Support

• 4.7 Customer Support Quality

Adjustments:

 • PAMM Account Access – Managed account options

 • API Access – For institutional or high-frequency traders

» Broker Ratings on FxPros.net | » Explore the full Rating Formula v4.0 at TradingCenter.org

■ Rating Forex Formula v.4.0 (c)

Giorgos Protonotarios, Financial Analyst

for FxPros.net (c)