To enhance user experience, the Trading Finder team assigns a specific score to brokers, exchanges, and prop firms active in forex, stock, and cryptocurrency markets after an in-depth examination of various factors that directly impact traders' experience. This score also called the trust score, is based on the methodology for reviewing platforms active in different markets and helps users gain more confidence in the platform.
Trading Finder's Market Platforms Evaluation Criteria
Trading Finder uses various data to determine platform scores, which we will refer to in the next section.
- Years of operation
- Number and value of received regulations and licenses
- Trading Finder experts' opinion on that platform
The criteria (years of operation and Trading Finder experts' opinions) don't need extensive explanation; however, the criterion of the number and value of received regulations and licenses needs more attention. Receiving regulation from active regulatory organizations worldwide does not have the same credibility and value, and some institutions have stricter rules than other organizations in validating companies active in this field.
Ranking Regulatory Organizations in Financial Market
Trading Finder has divided the value of licenses received from regulatory organizations into 5 categories. We will explain this categorization and the organizations present in each rank.
Tier 1 Organizations
Organizations in this category have strict rules and high supervision over platforms active in financial markets, and companies that receive this regulation are completely trustworthy.
- Australian Securities & Investments Commission (ASIC)
- Canadian Investment Regulatory Organization (CIRO)
- Japanese Financial Services Agency (JFSA)
- Monetary Authority of Singapore (MAS)
- Financial Markets Authority of New Zealand (FMA)
- Swiss Financial Market Supervisory Authority (FINMA)
- Securities and Futures Commission of Hong Kong (SFC)
- Financial Conduct Authority (FCA) - United Kingdom
- Commodity Futures Trading Commission (CFTC) - United States
- Financial Market Authority (FMA) - Austria
- Financial Services and Markets Authority (FSMA) - Belgium
- Financial Supervision Commission (FSC) - Bulgaria
- Croatian Financial Services Supervisory Agency (HANFA)
- Cyprus Securities and Exchange Commission (CySEC)
- Czech National Bank (CNB)
- Danish Financial Supervisory Authority (DFSA)
- Autorité des marchés financiers (AMF) - France
- Estonian Financial Supervision Authority (FSA)
- Hellenic Capital Market Commission (HCMC) - Greece
- Finnish Financial Supervisory Authority (FIN-FSA)
- Federal Financial Supervisory Authority (BaFIN) - Germany
- Hungarian National Bank (MNB)
- Central Bank of Iceland (CBI)
- Central Bank of Ireland (CBI)
- National Commission for Companies and the Stock Exchange (CONSOB) - Italy
Tier 2 Organizations
Organizations in this category have appropriate rules for platforms providing services in financial markets but are less strict compared to tier one in • Securities and Exchange
- Commission of Brazil
- Securities and Exchange Board of India
- Israel Securities Authority (ISA)
- Jordan Securities Commission
- Capital Markets Authority (CMA) - Kenya
- Securities Commission Malaysia (SCM)
- Comisión Nacional Bancaria y de Valores (CNBV) - Mexico
- Securities and Exchange Commission Philippines
- Financial Sector Conduct Authority (FSCA) - South Africa
- Securities and Exchange Commission Thailand
- Capital Markets Board of Turkey
- Dubai Financial Services Authority (DFSA) - United Arab Emirates
Tier 3 Organizations
Brokers with tier three licenses and regulations have weaker rules and regulations than the other institutions mentioned and may expose investors' assets to risks.
- Central Bank of Argentina (BCRA)
- Bermuda Monetary Authority (BMA)
- Financial Supervisory Authority of Bolivia (ASFI)
- Financial Market Commission of Chile (CMF)
- Central Bank of Honduras
- Financial Services Commission of Jamaica
- Securities and Exchange Commission of Pakistan (SECP)
- Central Bank of Uruguay (BCU)
- Central Bank of Russia (CBR)
Tier 4 Organizations
Companies that receive licenses from organizations in this tier have high risk and receive a low score on the Trading Finder site.
- Central Bank of Armenia (CBA)
- Securities Commission of the Bahamas (SCB)
- Central Reserve Bank of El Salvador (BCR)
- Securities and Exchange Regulator of Cambodia (SERC)
- National Bank of Georgia (NBG)
- Financial Services Authority of Seychelles (FSA)
- Central Bank of Uzbekistan (CBU)
- State Bank of Vietnam (SBV)
- National Securities and Stock Market Commission of Ukraine (NSSMC)
Tier 5 Organizations
Brokers regulated by tier 5 institutions need to be more trustworthy, and the risk of using them is very high.
- Angola Financial Services Commission (AFSC)
- Financial Services Regulatory Commission of Antigua and Barbuda (FSRC)
- Aruba Financial Services Commission (AFSC)
- Grenada Authority for the Regulation of Financial Institutions (GARFIN)
- Central Bank of Haiti (BRH)
- Securities and Exchange Commission of Myanmar (SECM)
- Financial Services Regulatory Authority of Saint Lucia (FSRA)
- Central Bank of Syria (CBS)
- Central Bank of Turkmenistan (CBT)
- Central Bank of Venezuela (BCV)
Trust Score
Trading Finder scores companies and platforms active in financial markets on a scale of 0 to 10 based on the mentioned criteria. The higher the score service providers receive, the more trustworthy these platforms are. The score given to brokers or exchanges makes it easy for global market participants to compare platforms.
Score 9.0 / 9.9 (Grade A)
Brokers that receive a score in this range are entirely reliable and trustworthy because regulatory bodies and laws fully oversee all their activities.
Important note: Although these brokers receive a high security score, they are not immune to significant risks such as central bank bankruptcies or large economies.
Score 8.0 / 8.9 (Grade B)
Platforms in this range have high credibility and are a good option for users who cannot open an account with brokers scoring 9.0 and above due to their particular circumstances.
Score 7.0 / 7.9 (Grade C)
Brokers with a score between 7.0 and 7.9 are generally safe, but users should be aware of the risks of these platforms before funding their trading account. Trading Finder suggests that users review their licenses and regulations before starting activities with these brokers or exchanges.
Score 6.0 / 6.9 (Grade D)
The risk of using platforms in this tier is high, and there are many doubts about the licenses and regulations of companies in this category. These companies usually have a history of financial activities contrary to international laws. Trading Finder suggests traders consider higher-tier platforms before opening an account with these brokers.
Score less than 5.9 (Grade E)
Companies that receive a score less than 6.0 are untrustworthy, and the risk of activity with them is very high. Trading Finder always identifies the risks associated with these brokers in their analysis and review.
