Each Forex Broker is given a score in 9 different sub-categories. The sub-categories are given different weightings used to calculate the Total Index Score. The weightings from greatest to least are in this order: Safety of Funds, Costs, Functionality, Versatility, Public Opinion, Technology, Resources/Extras, Ease of Use and Restrictions. Our proprietary system was designed by professional traders and is completely unbiased and independent. It measures more than 50 different dynamics for each broker.
The last thing traders and investors need is to worry about the safety of their deposited funds. This sub-category ranks brokers on a number of different dynamics.
These are all factors weighing in on the safety of funds index score.
This sub-index measures more than just the cost of the spreads or commissions in currency pairs but is designed to give a complete picture of the total costs of doing business with that broker. For example, do you do automated trading with an EA? There may be costs involved in setting up a VPS (Virtual Private Server). Or perhaps you are a carry trader or someone whose average trade time is greater than 2 days. Rollover charges or credits could have a larger effect on your bottom line than spreads. Does the broker pay credit interest on your account balance or not? The Costs sub-index uses a standard account size and scores the overall costs involved with each broker with a higher score meaning lower costs. BrokerTank.com encourages traders to use our scores as a general guide only, as verifying the costs involved for your particular style of trading will give you the clearest picture.
This sub-category measures how much a trader can do in managing their trades and positions. Some of the dynamics accounted for are trailing stops, access to phone orders, partial position closings, hedging, OCO orders, slippage control, level 2 depth, minimum take profit and stop loss distances and customized or advanced options. As an example, some brokers allow you to place your bid or offer inside the spread directly viewable to the market allowing you to become a liquidity provider or market maker yourself. Does the broker impose the FIFO rules or are traders allowed the freedom to choose? A higher score denotes a more functional broker.
Important when choosing a new broker. The versatility sub-index scores three things: available trading instruments, funding options (different currencies available to fund the account in) and leverage. Higher scores are given to brokers giving more options and flexibility to traders.