Forex Broker Ratings Explained: What You Should Look for Before Signing Up

One of the things you want to look at when picking a Forex broker is their ratings. And these ratings can tell you something about broker reliability and services, but it’s important to know what to look for. Knowing what makes a broker reliable could assist you in making a more informed decision on who to sign up with.

To begin with, it’s important to know what this rating is all about. Overall there are 3 key factors that broker ratings tend to be based on – such as trustworthiness, platform usability, customer service, fees, range of tools and resources available. With that said, a high rating might suggest their broker is well regarded but relying only on ratings is not the answer. Always dig deeper and look into what really contributed to that rating.

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When evaluating a forex broker, regulation is one of the most important factors. The broker that a reputable financial authority such as the Financial Conduct Authority (FCA, the U.S. Commodity Futures Trading Commission (CFTC) is likely to offer higher level of protection to its clients. A broker is considered properly regulated when they follow some rules of trading protocols which protects your funds and the revenue flow. Sometimes low ratings come from a poor regulatory standing or no oversight.

The next step is to run through the broker’s trading platform. A smooth trading needs a high quality platform. Try to find a good, reliable, easy to use and also has all the tools, whether it be analysis, charting or order execution. Even so, I suggest that people using such services can go for platforms, being used by experienced traders, like MetaTrader 4 and MetaTrader 5 due to their high level charting capabilities and customizability.

In addition to fees and spreads, a broker’s rating relies heavily on them. Immediately eroding your profits out of a broker with high spreads or hidden fees. Compare the fees between different brokers and read the fine print to find out which of the big boys gives you the best trade for your trading style. But some of the brokers will advertise low spreads but charge fees for withdrawal or inactivity. A low rating here may indicate hidden costs you wouldn’t see at first glance.

Another incredibly important factor that can affect a broker’s rating is customer support. The trading environment is pretty fast and at any moment you need help. A great customer service means that a broker will have a responsive support team available over numerous channels, such as email, live chat or phone. For example, a broker with a bad customer support rating could take long to resolve or even at times not resolve a customer grievance.

Forex broker ratings are useful but should not be your sole criterion in the decision making process . If you have the time, take a look at what influences those ratings and do some research yourself. If you are focused on regulation, platform quality, fees, customer service and tools available, you will be able to find a broker that will fit your needs and can help you have your best chance of success.