Trading Finder Rating

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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.

Regulatory Organizations in Financial Market 
We have 5 tiers of Regulatory Organizations in Financial Markets.

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.

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

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.

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.

Tier 5 Organizations

Brokers regulated by tier 5 institutions need to be more trustworthy, and the risk of using them is very high.

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.

trust score
Trading Finder rates active platforms in financial markets in 5 different grades.

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.

FAQs
Are brokers that have received a score of 7 or higher on the Trading Finder website reliable?

Yes, but users should always fully research the regulatory status of these brokers before starting to operate with them.

What are the most important regulators for companies operating in financial markets?

The Australian Securities and Investments Commission (ASIC), the Cyprus Securities and Exchange Commission (CySEC), the Financial Conduct Authority (FCA) in the UK, and the Commodity Futures Trading Commission (CFTC) in the U.S. are some of the most important global regulators of companies in the financial market sector.

What are Trading Finder's criteria for selecting the rating of financial market platforms?

Years of operation, the number and value of regulatory licenses received, and the opinions of Trading Finder experts are the most important criteria for Trading Finder in determining the rating of platforms in the financial market sector.

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