How We Audit Forex Brokers

BrokerAudit exists because most broker review sites won't tell you how they calculate their scores. They'll give you a number out of 10 or 100, but the formula behind it stays hidden. That makes it impossible to know whether a high score reflects genuine quality or a commercial relationship.

We do things differently. This page explains every component of our scoring system, how we collect data, and how we keep it current. If you disagree with a weight or think we've got a number wrong, you have everything you need to tell us why.

Our Audit Philosophy

The word "audit" is deliberate. An audit is a systematic, evidence-based review. It's not an opinion piece. It's not a sales pitch. It's a structured examination of verifiable facts.

Every score on BrokerAudit is derived from data. Where subjective judgement is involved (platform usability, support quality), we document the criteria and explain our reasoning. The goal is simple: give traders enough information to make their own decision, and make the process transparent enough that you don't have to take our word for it.

Scoring Categories & Weights

Every broker receives a score from 0 to 100 in each of 7 categories. These category scores are combined into an overall score using fixed weights:

| Category | Weight | What It Measures | |----------|--------|------------------| | Regulation & Trust | 25% | Regulatory licenses, jurisdiction tier, operating history, public listing, investor protection | | Trading Costs | 20% | EUR/USD, GBP/USD, USD/JPY average spreads, commissions, swap rates, inactivity fees | | Platforms & Tools | 15% | Platform variety, charting quality, mobile apps, API access, copy trading, VPS | | Account Conditions | 10% | Minimum deposit, leverage flexibility, account types, demo and Islamic accounts | | Deposit & Withdrawal | 10% | Payment methods, processing times, fees, base currency options | | Customer Support | 10% | Channel availability, operating hours, language support, response quality | | Education & Research | 10% | Learning content, market analysis, trading signals, tools |

Why these weights? Regulation carries the most weight because it directly affects the safety of your money. Trading costs come second because they have the largest ongoing impact on profitability. Platform quality matters because it affects your daily trading experience. The remaining categories share equal weight at 10% each.

Regulation & Trust (25%)

This is the single most important factor in our scoring. A broker with rock-solid regulation and decades of operating history is fundamentally different from one registered in an offshore jurisdiction last year.

How we score it:

The base score comes from the broker's highest-tier regulator:

Tier 1 regulators (FCA, ASIC, MAS, FINMA, CFTC/NFA, BaFin, JFSA, CIRO): Base score of 70
Tier 2 regulators (CySEC, DFSA, FMA, FSCA, CBI, KNF): Base score of 50
Tier 3 regulators (FSA Seychelles, FSC Mauritius, VFSC, SCB, BVI FSC, FSC Belize): Base score of 30

Additional points are awarded for:

Each additional Tier 1 license: +5 (maximum +15)
Each additional Tier 2 license: +3 (maximum +9)
Publicly listed on a major stock exchange: +5
10+ years of operating history: +3
20+ years of operating history: +5 (replaces the +3)
Investor compensation scheme: +2

The score is capped at 100.

Why tier classification matters:

Tier 1 regulators impose strict capital requirements, mandate segregated client funds, require regular audits, and provide investor compensation schemes. The FCA, for instance, requires brokers to hold client funds in segregated accounts and provides up to £85,000 in compensation through the FSCS if a broker fails.

Tier 3 regulators typically have lighter capital requirements, less rigorous oversight, and limited or no investor compensation. A broker registered in Seychelles or Vanuatu faces far less regulatory scrutiny than one licensed by the FCA or ASIC.

Many brokers hold licenses in multiple jurisdictions. We credit that, because it means the broker has submitted to oversight from multiple authorities. But we also note which entity actually serves retail clients. If a broker's FCA license only covers professional clients while retail traders are routed to a Seychelles entity, that distinction matters, and we flag it in the review.

Trading Costs (20%)

We benchmark spreads on three major pairs: EUR/USD, GBP/USD, and USD/JPY. These are the most liquid pairs and the ones most traders will use as their primary reference points.

How we score it:

EUR/USD average spread is the primary benchmark:

0.0 to 0.2 pips: 90-95 points
0.2 to 0.5 pips: 80-89 points
0.5 to 1.0 pips: 65-79 points
1.0 to 1.5 pips: 50-64 points
1.5 to 2.0 pips: 35-49 points
2.0+ pips: 20-34 points

The score is then adjusted based on:

Commission structure (are raw spreads offset by high commissions?)
Availability of zero-commission account options
Swap/overnight financing rates
Inactivity fee policy (aggressive fees result in a penalty)

A broker with 0.0 pip spreads but $10/lot commission may not actually be cheaper than one with 0.8 pip spreads and no commission. We account for total trading cost, not just the headline spread.

Platforms & Tools (15%)

Traders interact with their broker through the platform. A good platform with poor charting tools or no mobile app creates friction that affects real trading outcomes.

How we score it:

Points are awarded for each available platform and feature:

MetaTrader 4: +15
MetaTrader 5: +15
cTrader: +15
TradingView integration: +15
Proprietary platform: +10
Quality mobile app: +10
API trading access: +10
Copy/social trading: +5
VPS hosting: +5

Base score is 0, capped at 100.

We test platforms for charting functionality, order execution interface, and mobile responsiveness. A broker offering MT4, MT5, cTrader, and TradingView gives traders maximum flexibility, which is reflected in a higher score.

Account Conditions (10%)

This category rewards brokers that make trading accessible without unnecessary barriers.

How we score it:

Minimum deposit $0-10: +25 points
Minimum deposit $10-100: +15 points
Minimum deposit $100-200: +5 points
Each account type offered: +5 (maximum +20)
Demo account available: +10
Islamic/swap-free account: +10
Micro lot trading (0.01 lots): +10
Flexible leverage options: +10

Capped at 100.

Deposit & Withdrawal (10%)

How easily you can get money in and out of your account matters. Hidden withdrawal fees or slow processing times are red flags.

How we score it:

5+ payment methods: +25
3-4 payment methods: +15
1-2 payment methods: +5
Free deposits: +20
Free withdrawals: +20
Instant or same-day processing: +15
Multiple base currencies: +10
No hidden fees: +10

Capped at 100.

Customer Support (10%)

When something goes wrong with a trade or a withdrawal, support responsiveness becomes critical.

How we score it:

24/7 support: +25
24/5 support: +15
Business hours only: +5
Live chat: +20
Phone support: +15
Email support: +5
10+ languages: +15
5-9 languages: +10
1-4 languages: +5
Response quality (based on testing): up to +15

Capped at 100.

Education & Research (10%)

Good educational content helps beginners get started, and quality research tools benefit traders at every level.

How we score it:

Webinars: +15
Video tutorials: +10
Structured trading courses: +15
Market analysis: +15
Trading signals: +10
Economic calendar: +5
Trading calculators: +5
Content quality and depth (editorial assessment): up to +25

Capped at 100.

Regulation Tier System

Our three-tier classification of regulators reflects the relative strength of each authority's oversight:

Tier 1 (Strongest)

| Regulator | Country | Key Protections | |-----------|---------|-----------------| | FCA | United Kingdom | Segregated funds, FSCS up to £85,000, strict capital requirements | | ASIC | Australia | Segregated funds, strict reporting, leverage caps for retail | | MAS | Singapore | High capital requirements, strict conduct rules | | FINMA | Switzerland | Banking-level oversight, depositor protection | | CFTC/NFA | United States | Strict capital requirements, SIPC protection, regular audits | | BaFin | Germany | EU MiFID II framework, investor compensation €20,000 | | JFSA | Japan | Strict leverage limits (1:25), segregated funds | | CIRO | Canada | Canadian investor protection, strict conduct rules |

Tier 2 (Moderate)

| Regulator | Country | Notes | |-----------|---------|-------| | CySEC | Cyprus | EU MiFID II framework, ICF up to €20,000. Widely used by international brokers. | | DFSA | UAE (DIFC) | Strong regional regulator, growing in prominence. | | FMA | New Zealand | Solid oversight, smaller market. | | FSCA | South Africa | Improving standards, important for African market. | | CBI | Ireland | EU MiFID II framework, similar to CySEC in practice. | | KNF | Poland | EU framework, strong oversight for Polish market. |

Tier 3 (Limited)

| Regulator | Country | Notes | |-----------|---------|-------| | FSA Seychelles | Seychelles | Light oversight, popular with offshore entities. | | FSC Mauritius | Mauritius | Growing but limited investor protection. | | SCB | Bahamas | Basic regulatory framework. | | VFSC | Vanuatu | Minimal oversight requirements. | | BVI FSC | British Virgin Islands | Limited regulatory scope. | | FSC Belize | Belize | Minimal capital requirements. |

Tier 3 doesn't mean a broker is unsafe. It means the regulatory safety net is thinner. Many reputable brokers operate Tier 3 entities alongside their Tier 1 licenses, and use the offshore entity to offer higher leverage or serve regions where Tier 1 regulators don't have jurisdiction.

How We Collect Data

Primary sources: Official broker websites. We pull spread data, fee schedules, account conditions, and regulatory license numbers directly from each broker's site.

Verification: Key figures are cross-referenced against third-party review sites (ForexBrokers.com, BrokerChooser, CompareForexBrokers, FXScouts) and regulator databases (FCA Register, ASIC Connect).

Testing: We open demo accounts and, where possible, live accounts to verify platform functionality, execution quality, and support responsiveness.

Frequency: Data is reviewed weekly. Full reviews are updated at least quarterly, or sooner if a broker makes significant changes to fees, platforms, or regulatory status.

Scoring Example

Here's how Pepperstone's overall score of 88.6 is calculated:

| Category | Score | Weight | Weighted | |----------|-------|--------|----------| | Regulation & Trust | 90 | 25% | 22.50 | | Trading Costs | 94 | 20% | 18.80 | | Platforms & Tools | 95 | 15% | 14.25 | | Account Conditions | 88 | 10% | 8.80 | | Deposit & Withdrawal | 88 | 10% | 8.80 | | Customer Support | 80 | 10% | 8.00 | | Education & Research | 75 | 10% | 7.50 | | Overall | | 100% | 88.65 |

Pepperstone scores highest on Platforms & Tools (95) because it offers MT4, MT5, cTrader, and TradingView. Its Trading Costs score (94) reflects raw spreads averaging 0.10 pips on EUR/USD with a $7/lot round-turn commission on the Razor account. The weakest area is Education & Research (75), where it trails brokers like XM and AvaTrade that offer more structured learning content.

Update Schedule

Spread data: Reviewed weekly
Fee schedules: Checked monthly
Regulatory status: Verified monthly
Full reviews: Updated quarterly or on material changes
Category rankings: Reassessed quarterly

Every review page displays a "Data verified" date showing when the information was last confirmed.

Editorial Independence & Affiliate Disclosure

BrokerAudit earns revenue through affiliate partnerships with the brokers we review. When you click a broker link and open an account, we may receive a commission.

This is how we fund the site, and it does not influence our scores or rankings.

Here's why you can trust that claim:

Scores are formula-driven. The scoring system described on this page produces every number you see. There's no editorial override that bumps a score because a broker pays more commission.
We review brokers that aren't affiliates. If a broker meets our inclusion criteria (minimum regulatory standard, minimum trading volume, market relevance), it gets reviewed on the same terms as every other broker.
We publish negatives. Every review includes genuine cons. If a broker has aggressive inactivity fees, wide spreads, or weak regulation, we say so clearly.
The methodology is public. You're reading it. If our scores didn't match the methodology, anyone could call us out.

All affiliate links on the site use rel="sponsored noopener" attributes as required by search engine guidelines. Affiliate disclosures appear on every page that contains broker links.

If you believe we've made an error or our data is outdated, contact us at contact@brokeraudit.io. We correct verified errors within 48 hours.