How does the FX Trust Score Index work?
Our proprietory FX Trust Score Index helps us fairly, accurately and consistently evaluate each forex broker, as it is based on the weight of fixed criteria.
1. Regulatory Compliance (A%): We assess each Broker’s regulatory status based on whether they hold licenses with relevant financial regulatory authorities such as the Financial Conduct Authority (FCA), the Securities and Exchange Commission (SEC), or other reputable regulatory bodies. A higher score is awarded for brokers with multiple regulatory licenses and a clean regulatory track record.
2. Security and Fund Protection (B%): We evaluate security measures Brokers take to protect client funds and personal information. This includes the use of encryption technology, segregated client accounts and membership in investor compensation schemes. A higher score is awarded for brokers with robust security measures in place.
3. Customer Support (C%): We evaluate the Broker’s client support services, including responsiveness, availability and quality of support channels (e.g., live chat, email, phone). A higher score is awarded for brokers with efficient and helpful client support teams.
4. Online Reputation (D%): We consider client feedback and reviews from reputable sources such as independent review websites, forums and social media platforms. A higher score is awarded for Brokers with positive client feedback and a good reputation in the industry.
5. Trading Conditions (E%): We assess the Broker’s trading conditions, including spreads, commissions, leverage and minimum deposit requirements. A higher score is awarded for brokers with competitive trading conditions and transparent fee structures.
Example Illustration of FX Trust Score Index Ratings
How is the FX Trust Score calculated?
The FX Trust Score is calculated by aggregating the weighted scores across all metrics. For example, if a forex broker scores 90% on regulatory compliance, 80% on security, 85% on trading platform reliability, 70% on customer support, 75% on trading conditions, and 80% on client feedback and reputation, the trust index score would be calculated as follows:
Trust Score = (A * 90) + (B * 80) + (C * 70) + (D * 75) + (E * 80) = Answer
The higher the score, the higher the level of trustworthiness based on the aggregated metrics.
What do the coloured bars mean?
Red (Below Average): For a score out of 100, this is approximately 0-33.
Amber (Average): For a score out of 100, this is approximately 34-67.
Green (Good): For a score out of 100, this is approximately 68-100.
FX Trust Score remains dedicated to reviewing and rating brokers in the fairest and most consistent way possible.
