At DailyForex, our mission is to provide traders with clear, accurate, and transparent reviews of Forex / CFD brokers and stockbrokers. To to do this, we use a rigorous, data-driven methodology that measure brokers across key categories. Traders need assessment by category to make informed decisions about which broker is most suitable for them. Our team of experts undertakes continuous research to ensure our reviews remain relevant and accurate, even within the fast-paced environment of the retail brokerage industry.

Here we explain the methodology we use to judge broker offerings, including the criteria we use, how we gather data, and how we ensure our reviews are consistent and transparent. By following a tight review assessment process, we ensure we provide reliable, impartial information that will be useful for the best interests of our readers.

We are not afraid to call out the facts when we see things that we don't like. We tell both sides of the story, both the good and the bad. When a broker has a good offering of all the industry "must haves", we will give them a good rating. On the other hand, when a broker falls short and might be a potential risk to our readers, we will mark down their score accordingly. We keep a list of the worst scam Forex brokers that come to our attention.

1. Data Collection Process

DailyForex uses a data gathering process to make sure our reviews are reliable and accurate. In every review we collect data from both primary and secondary sources. Our primary data comes directly from the brokers reviewed, including spreads, other trading fees, regulation, choice of trading platform, and how customer support issues are managed. We also test the platforms to get user experience.

As well as data from the brokers, we collect data from more independent sources like industry research sites, publications of user feedback, and financial journalists. We review each broker’s regulatory status by checking their status with relevant regulatory agencies, which in the cases of many brokers typically include the Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC), the Australian Securities and Investments Commission (ASIC), and others.

Finally, the data is verified. We use multiple sources to cross-check the data, which produces accurate, fair broker reviews.

2. Key Evaluation Criteria

We use a weighted scoring system of our data to generate overall scores for every broker we review, both overall and for important sub-categories. Here are the key categories we analyse:

2.1. Regulation and Security

The number one worry for traders must always be whether their deposits are safe. We put a strong emphasis on regulatory status, as this is the biggest factor in determining the trust and security of a broker. Brokers operating under tough regulators, like tier-1 entities such as the FCA, CySEC, or ASIC, get higher scores.

We also check whether brokers give negative balance protection (ensure clients canot be liable for more than their account deposit) and segregated client accounts (accounts kept separate from the broker's business activities), as these can provide additional security by making sure funds are safeguarded against crimes or bankruptcy.

2.2. Trading Costs and Fees

Trading costs can strongly impact a trader’s profitability, so we take spreads, commissions, and other trading fees charged by the broker very seriously. We compare each broker’s spread / commission offering and compare it to the industry average on major currency pairs. Of course, the more competitive the broker’s trading fees, the higher the score.

As well as trading fees like spreads and commissions, we also look at deposit and withdrawal fees, inactivity fees, overnight swap fees, and any other “hidden” fees. Brokers that are more upfront and honest about their fees receive extra points in this category.

2.3. Ease of Account Opening

We evaluate the range of account types offered by brokers to service traders with different experience levels, trading styles, and deposit sizes. For example, some brokers offer micro (very small), standard, and VIP (very large) accounts, each covering the needs of different types of traders. We also review the minimum deposit needed for each account type, understanding that traders may prefer brokers with affordable requirements.

Qe assess account features such as leverage options (how much leverage), base currencies (currencies the account's cash will be held in), and the availability of Islamic accounts (swap-free accounts for clients following Sharia law). Flexibility in account offerings contributes positively to a broker’s overall score.

Finally, we look at how easy the broker makes the account opening process, within the appropriate legal and regulatory requirements.

2.4. Asset Selection

The wider the range of assets offered by a broker, the more flexible a portfolio can be built by its clients. We evaluate brokers based on the choice of assets they make available for trading, including Forex pairs, commodities, indices, stocks, and cryptocurrencies. Brokers with a wider range of tradable instruments are rated more highly, as they provide more opportunities for traders to diversify.

2.5. Deposit and Withdrawal Process

Deposit and withdrawal processes are not usually of very high importance to most traders, provided withdrawal requests are honoured quickly. However, payments have become more complicated today with the increasing number of payment methods. We evaluate brokers based on the number of payment methods they offer, such as bank transfers, credit/debit cards, and e-wallets like PayPal and Skrill. We also grade brokers on how long it takes and whether they charge any additional fees against transfers, as most of the best brokers will not charge these fees.

3. Secondary Evaluation Criteria

We also look at what a broker offers in several other categories when we evaluate them:

3.1. Execution Speed and Reliability

Quick and dependable trade execution (completion) is vital for most traders, especially in fast-moving markets like Forex. We test execution speeds during the most liquid (easy to trade) market hours to determine if brokers can execute quickly without inappropriate slippage (where a market order is executed far from the current price). Another factor we check is whether brokers offer a choice of styles which affect execution, as ECN (trade matching) and market maker (dealing desk) brokers, for example, usually give different executions in a market environment.

3.2. Leverage and Margin Requirements

Although the retail CFD (contract for differences) industry is full of brokers offering more leverage than traders should ever need, we note broker leverage policies, even though these are usually capped by regulation in many places. We review how the maximum leverage offered differs by asset class and account types, and weigh that against what is prudent. We also look at broker margin requirements (how much cash you need to make a trade), margin calls (when a trade close is forced by the broker because your account doesn't have enough funds to cover it safely), and whether negative balance protection is offered in the cases where it is not legally enforced.

3.3. Trading Platforms

The trading platform is the trader’s gateway to the financial markets, and its quality can make or break the trading experience. We thoroughly test each broker’s trading platforms, including both proprietary and other platforms like MetaTrader 4, MetaTrader 5, and cTrader. Our evaluation focuses on platform usability, stability, customization options, and the range of technical analysis tools available.

We also consider whether the platform is available on multiple devices, such as desktop, web, and mobile, ensuring traders can access their accounts and manage trades regardless of their location.

3.4. Customer Support

Customer support is something most traders will rarely need, if ever. However, a competent broker will take care of its clients, and a broker’s attitude and effort in this category can tell you a lot about their corporate culture, not to mention whether a customer will be able to get help in having a problem solved. Sometimes there can be disputes over trades or withdrawals, which can be especially annoying to clients if not handled appropriately and quickly.

So, we grade brokers on their responsiveness to their customers’ complaints and requests. We grade based on opening hours, responsiveness, available channels (e.g. phone, live chat on an app, etc). We also expect brokers to offer support in multiple languages. Finally, we note that customer support can be provided partially by static materials such as FAQs, and we look at this too.

3.5. Educational Resources and Research Tools

Although we do not believe it is an essential service, we think brokers seeking beginner traders or investors might do well to offer some educational content, including articles, video tutorials, webinars, and eBooks. Brokers offering high-quality market analysis also get extra points as this can be very helpful to traders looking to get more educated about the market.

4. How We Test

We test each broker’s account and platform in live environments, mimicking the experience of a real client as closely and practically as possible. Our testing process includes:

Opening an account with the broker.

Depositing funds to test their payment process.

Trading multiple asset classes to judge execution and platform quality.

Contacting customer support to assess their openness, responsiveness, and problem-solving ability.

5. Scoring and Ranking System

Each broker receives a score for each of the above categories. Each category carries a different weight in determining the overall score because some are far more important than other. For example, a broker’s regulatory standing is much more important than its educational offering.

Next, each broker is then given an overall rating based on all categories. Brokers that score highly in areas such as regulation, trading costs, and platform functionality typically rank at the top of our reviews. We update our ratings regularly to reflect changes in what reviewed brokers can offer.

6. Commitment to Transparency and Objectivity

At DailyForex, objectivity and transparency are key to how we test brokers. We do not accept compensation from brokers in exchange for favourable reviews. Our review process remains independent from our partnerships. Of course, we always give brokers that we review the chance to give feedback and to correct any factual errors that might have arisen.

Our team of experts continuously updates our reviews and methodology to keep up with what is current, ensuring that our readers have the most up-to-date information possible.

Conclusion

DailyForex’s broker evaluation methodology has been created to provide its readers with the accurate and relevant information needed to determine which brokers are right for them. By analyzing each broker in both the full range of must-haves and nice-to-haves, DailyForex ensures that traders can evaluate brokers on their own terms and get the best possible service in the market, giving the best possible chance for profitable trading. Our experts are traders with years of experience in the industry, so we have a strong understanding of what traders need. Find out more about us here.