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Forex news. Selecting a reliable forex broker is something even experienced traders face real difficulty in. One should analyze dozens of parameters the broking company in question is characterized by – from its licenses and country of registration to order execution time, technical support and client services.
How can one select 2-3 best forex brokers from hundreds? One should evaluate quality of order execution, price accuracy, request details of trading terms and conditions, particularly spreads for traded forex pairs which are often posted in quite an inconspicuous place, to put it mildly. Their value is given with a very small note ‘this is the minimum spread’. One should know the reputation of broking companies one is interested in, discover facts of failure to pay out profits, ‘non-market’ stop hunting and slippage, if any. To this end, you’ll have to look through a host of forums, feedback and ratings understanding, in the meantime, that information so available can be controlled by the Dealing Center itself which does not want to make its operations public, while the unbiased nature of many ‘independent’ ratings starts and finishes with counting of votes with no regard for dozens of such subtleties.
Broker rating from the Masterforex-V Academy is an appropriate solution for a forex beginner
The problem of selecting a forex broker is especially trader is especially acute. The issue of choosing a reliable broker is still among Top-10 leaders in the Masterforex-V Academy’s FAQ. Compared to an experienced trader who took years of trading to find out what they should be focused on and what factors should be treated as determinant, a beginner who hasn’t ‘gone through fire, water and price failure’ can be misled by aggressive advertising, feedback of the kind ‘my friend and I had some training, took a loan and repaid it as early as a month later’, an abundance of bonuses and, as a result, make his life and that of his capital difficult.
This is why the Masterforex-V Academy, the best forex and stock exchange trading educational project of Europe in 2009, 2010 and 2011, based on 6 years of its students’ experience with dozens of broking companies worldwide, started its own forex broker rating prepared by experienced traders on the basis of over 15 independent criteria which allow evaluating each company in an unbiased manner in the strict language of numbers.
Currently, the Masterforex-V Academy’s forex broker rating includes about 70% of available data. But one can speak of the first and quite unexpected results already now.
Who made it to the Top Five brokers of the Masterforex-V rating?
Voting started last week for the broker rating, separately for traders that study at the Academy and users of the global internet who might include staff of stakeholder DCs and those who have traded only in a simulated account. This is why voting significance also varies: the average score of the votes cast by the Academy’s students for each broker is multiplied by a ratio of 30, while that of user votes is 15. The value for experienced traders of the Academy’s Administration is 60. Let’s look directly at the results of the first week of voting.
Top five leaders of the premier league include:
The 1st place in the forex broker rating is held, so far, by FIBO Group which came ahead of other companies with an unexpectedly large gap owing to its licenses, the number of years in the market and a large number of votes from the Academy’s traders who evaluated FIBO Group’s operations with the maximum allowed – 5 scores. The company was also highly appreciated by traders from the Academy’s Administration as well who hold serious accounts with FIBO and have no serious claims.
The 2nd place in the forex broker rating is held by FOREX.com which was also highly appreciated by student traders and the Academy’s Administration. Surprisingly few internet users voted despite an abundance of feedback. This might have been caused by quite a substantial minimum deposit of $250 and a minimum lot of 0.1 for beginners. FOREX.com’s rating was significantly affected by the company’s experience – it has been around since 1999 - and serious regulators – FSA and NFA. In addition, FOREX.com is one of the few companies whose shares are trading in New York Stock Exchange.
The 3rd place in the forex broker rating is held by EXNESS. It is its unprecedented trading conditions that played a vital role – a record number of instruments, very low spreads (among the narrowest in the world), really fast order execution and unique automatic withdrawal of funds. Despite its young age (founded in 2008, so EXNESS lost some scores to other broking companies based on the number of years in the market), the company is rather well known and got the maximum possible – 100 – for media publications. Experienced traders from the Academy’s Administration and the Academy’s students put 4.25 and almost 4 for the company’s operations, respectively.
The 4th place in the forex broker rating is currently held by NordFX, a very dynamically developing company. What this company is primarily characterized by and even unique and what affected its place in the rating is that NordFX has had no single claim from traders for three years, since its creation in 2008 to date. This is why it has been highly evaluated by traders of the Academy’s Administration - 4.75 out of a maximum at 5. The grade given by the Academy’s students is a little lower - 4.25.
5th place. The top five leaders are closed by Admiral Markets, which got maximum scores for ten years of operation in the work and the FSA license. Traders’ votes didn’t significantly affect the company’s place in the rating. A relatively small number of votes and feedback from traders might be related to a modest PR campaign in the CIS territory. Admiral Markets management is likely to take further steps soon to popularize the company among Russian-speaking traders. So far, reliability time-proved and acknowledged by a serious European license remains the main advantage of Admiral Markets.
Other well-known forex broking companies:
• MIG BANK (Switzerland) – 6th place;
• Forex club – 8th place in the premier league of brokers;
• Dukascopy Bank SA (Switzerland) – 9th place;
• ICM Brokers (US) – 10th place;
• Teletrade – 11th place;
• Alpari – 13th place;
• LiteForex – 15th place;
• InstaForex – 16th and comes last in the premier league which requires a score of at least 300.
The following companies unexpectedly (or reasonably, given a lot of negative feedback from the MF Academy’s students) ended up in the second league of forex brokers failing to get the score required to make it to the premier league - FINAM, OANDA, Deltastock, Saxo Bank, BMFN, X-Trade Brokers, ISIGroup Ltd, Forex4you, Kalita Finance etc.
Black DCs: Do they have a place in the rating?
The Masterforex-V Academy is famous for its merciless attitude to black DCs and fines are very high in the rating as much as 100 points are deducted for failure to pay out profits to the Academy’s trader. Every trader clearly understands why such strict penalties are fair as after they master subtleties of such a complex profession as trading in financial markets, after months and years of training during which you as a trader not only get specific knowledge and develop trading skills but also change your world outlook; after your finally learn to make money consistently and treat your stops with equanimity as an inevitable element of your work and an opportunity for further improvement, you suddenly discover that… the DC refuses to pay you your profits! No further comments. This is why such DCs as Forex MMCIS, ForexEuroClub, Broco that have a few claims related to failure to pay each, are unlikely to make it even to the leaders of the third league. Reputation among traders is earned for a long time and is hard to recover. Traders are a distrustful audience.
It should be noted for justice’s sake that the third league includes not only DCs exposed in failure to pay profits, intended stop hunting, but also those that generally exist at the expense of their traders’ capitals. Members of the third league primarily include young and, possibly, promising companies that lack profile and experience in engaging traders in cooperation. These companies’ management might have to consider improving trading conditions and holding wider PR campaigns. Otherwise, operating costs may have relevant consequences for lack of the required number of clients.
These are the results of the first rating week. New data will be entered. Some brokers might change their trading conditions or get a more significant license – any changes will be monitored and affect broker ratings. Both internet users and Academy traders become increasingly more active as they remember their own difficulties and help beginners make a choice by leaving their feedback and evaluating broking companies in the Strategy and Tactics of Current Trading thread. As a reminder: if you feel like, you can vote and express your opinion about any broker in the forex broker and DC rating of the Masterforex-V Academy. The next overview of the broker rating will be published in a week on pages of the information portal for traders and investors, Market Leader.
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