.Qexpert.

com

FOREX RATING FORMULA

Rating Forex Brokers Formula v4.0

For e x R a t i ng For m ul a

“Introducing a Rating Revolution in the Financial

Industry”

Forex Rating Formula v4.0

-Copyright © March 2014
George Protonotarios ©-All rights reserved worldwide
Distribution by Qexpert.com

www.Qexpert.com
FOREX RATING FORMULA v4.0
“A Revolutionary Way of Rating Financial Services”

-TABLE OF CONTENTS-

(1) Introduction to the Series of Rating

Formulas
- The Need for an Objective Rating Framework
- The Rating Formulas History

(2) Designing the Rating Formula v4.0

- The Core Rating Mechanism of Rating Formula v4.0

(3) Factor-1 Safety of Funds (Weight 26%)

(4) Factor-2 Trading Cost (Weight 28%)

(5) Factor-3 Trading Options (Weight 26%)

(6) Factor-1 Technology (Weight 20%)

Forex Rating Formula v4.0 – Qexpert.com 2

(1) Introduction to the Series of Rating
Formulas by TradingCenter.org
Mission: “Seeking for an Objective Framework to Rate the World's Financial
Services”

The Current Problem with Online Ratings

Until today, all financial ratings were made by users (user ratings).
Unfortunately, and according to research, more than half (50%) of these user
ratings proved fake. And that is because there is a huge commercial incentive
for any financial company to hire outsiders in order to rate them favorably
and / or rate other competitors unfavorably. Evidence comes from the fact
that most of these user ratings are given excessive values (i.e. 5/5 or 0/5). Of
course, if you are very experienced with Forex reviews, you may understand
which of these user ratings are real and which not. The problem is that the
Total User Rating found in the internet today is the Average Rating Value of
usually many thousands of individual ratings, and evaluate them one by one
is nearly impossible and not accurate. Additionally, the new era of Web
Robots will make real user ratings / reviews even more rare and difficult to
find.

The Motive of Financial Companies for Manipulating their Ratings

Favorable ratings attract more accounts on behalf of a financial company so

there is an important motive for them to hire somebody to do that job. Of
course many companies wouldn’t get involved with fake ratings, but the
problem is that we don’t know these ‘good’ companies. Even if we knew these
‘good’ companies -their competitors could still manipulate their overall ratings.
If we take into account all these factors we may conclude that the current
status of the user ratings in the Financial Industry is not acceptable at all, and
shows the potential to become even worse in the future.

The Need for an Objective Rating Framework

The series of Rating Formulas introduced by TradingCenter.org aims to solve

that problem once and for all by providing an objective framework of rating
financial services. This brand new way of rating allows adjustments in order
to adapt the special needs of each trader, while it is focusing on all beginners,
advanced and professional traders. The idea behind the rating formula is
simple while its implementation is based on a 4-factor mathematical model.
Each factor represents an important need for almost all traders:

Forex Rating Formula v4.0 – Qexpert.com 3

-1- Safety of Funds
-2- Low Cost of Transactions
-3- Wide Variety of Trading Options
-4- Technological Efficiency

Objective: “Be Safe, Pay Low Transaction Cost and use State-of-
the-Art-Trading Technology”

The Rating Brokers Formulas History

The first, the second and the fourth version of the Rating Formula are applied
on Forex Brokers. The versions 3.0 and 3.5 are applied on Binary Option
Brokers.

This is the Rating Formulas history and links with detailed analysis:

► Forex Brokers Rating Formula –V.4.0 at TradingCenter.org (in this eBook too)

► Binary Option Brokers Formula -V.3.5, at BinaryValue.com

► Binary Option Brokers Formula -V.3.0, at BinaryValue.com

► Forex Broker Rating Formula –V.2.0, at TradingCenter.org

► Forex Broker Rating Formula –V.1.0, at OnlineForex.Biz

Forex Rating Formula v4.0 – Qexpert.com 4

(2) Designing the Rating Formula v4.0
“Seeking for the Perfect Forex Broker”

The Core Rating Mechanism of Rating Formula v4.0

The Trading Center’s Rating Formula is based on what makes a Broker the
best choice for the average trader. A certain weight is given in each factor
while the sum is kept at 100% (maximum rating):

(1) Safety of Funds (26%) (Level of Regulation, Years in the Market,

Headquarters Base etc)

(2) Transaction Cost (28%) (Trading Commissions, Spreads on Majors,

Maintenance Fees etc)

(3) Variety of Trading Options (26%) (Forex Asset Index, Fund Methods,
Rebate, Leverage etc)

(4) Technological Efficiency (20%) (Platforms, Mobile Trading, MT4,

Automated Trading, Slippage etc)

Here is the Complete Analysis of all the 4 factors -forming altogether a Rating
of 100%.

Trading Sites by Qexpert.com:

► Forex-Rebates.com | ►W hat-is-Forex.com | ► ForexAutomatic.com

Forex Rating Formula v4.0 – Qexpert.com 5

(3) Safety of Funds, (Weight 26%)

The Importance of Regulated Companies

All Financial companies (investment firms, venture capitals, brokers, dealers)

tend to accept more risk than they can really afford. This is happening when
the Potential Profit of a corporate decision is larger than the incorporated risk.
So historically, financial companies tend to accept high levels of risk and that
exposes them to a high possibility of collapse. This is exactly what happened
during the financial crisis of 2007-2008 in the US and after in the rest of the
world. But if you are an investor you don’t care about your broker’s potential
profit, you only care about the level of the risk that he tends to accepts. Risk
affects directly the safety of investing funds. Financial companies maintaining
their corporate risk low and ensuring the safety of their client funds are rated
favorably. The version v.4.0 along with regulation, headquarters base and the
years in the market consist new parameters such is the existence of
Segregated / Client Bank Accounts.

Table: Safety of Funds Analysis

1. SAFETY OF FUNDS WEIGHING ANALYSIS WEIGHT

FSC (BVI) = 1.0%, | CYSEC =

3.0%, | FFMS = 3.0%, | RAFMM =
3.0%, | CBI = 4.0%, | ASIC =

4.0%, | FSC (NZ) = 4.0%, | FSA

1.1 Regulatory Bodies 12.0%
(UK) = 6.0%, | BAFIN = 6.0%, |
NFA = 6.0%, | CFTC = 6.0%, |

FINMA = 8.0% | and MiFID =

+4.0%

General Offshore = 0%, Cyprus,

Israel, Latvia = 2.0%, Ireland,
Spain, Italy, Belgium = 3%,
1.2 Headquarters Base Canada, Australia, New Zeeland = 5.0%
4.0%, USA, UK, Germany,
Scandinavian Counties, France,
Switzerland = 5.0%

0-1 Years = 0 %, 2-5 Years = 2.0

1.3 Foundation (Years in the market) %, 5-10 Years = 4.0 %, 10+ Years 5.0%

= 5.0 %

Forex Rating Formula v4.0 – Qexpert.com 6

 1. SAFETY OF FUNDS WEIGHING ANALYSIS WEIGHT

1.4 Segregated / Bank Accounts Yes = 2.0 %, No = 0.0 % 2.0%

ForexPeaceArmy Rating = 1.0 %, |

1.5 Web Ratings (Used for differentiating results) 2.0%
EarnForex Rating = 1.0 %

TOTAL= 26.0%

Adjustment of Factor-1 by keeping

1.6 ADJUSTMENTS the Overall Rating at maximum 26
%

More than 1 Million Active Traders

1.6.1 Size Factor +1.0%
= +1.0 %, No = o%

FACTOR-1 EXPLANATION:

1.1 Regulation, (12%) -Rating Method: Accumulation

High regulation by a trusty authority can reduce the risk of your brokerage
partner to misbehave. Furthermore in developing countries market
supervisors control Forex Brokerage Companies and impose them with high
penalties if they are proven to operate in a risky or unfavorable way.
Regulation by authorities in offshore countries on the other hand can not be
fully trusted. Regulation is an important issue for all trading styles and that is
how it is treated by the rating formula (12%).

1.2 Headquarters Base, (5%) -Rating Method: Selection

The country where a brokerage company is based determines in a high

extend the reliability of its balance sheet. Fees and penalties imposed by
supervising authorities provide a strong incentive for Forex Brokers to operate
legitimately without risking their client funds. In addition, when we rate
countries as a headquarters base we take into consideration also their overall
macroeconomic profile.

1.3 Years in the Market, (5%) -Rating Method: Selection

The long existence of a Forex company in the market means that this
company operates under a successful business model and that it is proven
capable of managing enterprising risk over time. Time is important as
concerns the financial industry.

Forex Rating Formula v4.0 – Qexpert.com 7

1.4 Segregated Bank Accounts, (2%) -Rating Method:
Selection

Brokers keeping client funds in segregated bank accounts are welcomed and
are rated favorably by the rating formula. Transparency is an important issue
when many transactions take place.

1.5 Web Ratings, (2%) -Rating Method: Accumulation

This rating parameter is used in order to differentiate the overall results. Two
popular ratings are used: ForexPeaceArmy ratings and EarnForex ratings.
These kinds of ratings are made by users. Sometimes user-ratings are fake
and that is why this particular factor receives weight of just 2% and not
more.
Tip: “Differentiation is Power when your Industry is the Financials”

1.6 +Adjustments

Adjustments are made in the computation of all the 4 factors incorporated in

the new Rating Formula v.4.0. Note that even and after the adjustment
made, the Factor-1 rating remains at a maximum weight of 26%.

1.6.1 Company Size, (+1%) -Rating Method: Adjustment

In the computation of the Factor-1, the adjustment made concerns the size of
the broker. Large brokers tend to fall harder than others, and thus those
brokers with a client base larger than 1 million active traders, are rated
favorably.

Note: In future versions it is possible that direct data from the balance sheet
of Forex brokers will be extracted and rated. And that means information
such is the annual profitability and / or the exposure in corporate debt as a
proportion of annual revenues. For now, we prefer to rate only aspects of
Funds Safety that offer us the chance to collect all the necessary data reliably.

RATING FACTOR-1- EXAMPLES

i) A Forex Broker based in the UK that was founded in the year 2000 and that
is regulated by FSA and BaFIN, receives 22.0%. Now, if this broker offers
segregated bank accounts and receives web ratings of 1%, gets an additional
3.0%, Grand Total of 25.0%%.

Forex Rating Formula v4.0 – Qexpert.com 8

ii) A Forex Broker based in British Virginia Islands that was found in 2010 and
that it is regulated by FSC (BVI) receives 6.0%. Now, if this broker doesn’t
offer segregated bank accounts and receives web ratings of 1%, it gets a
Grand Total of 7.0%.

The difference between these two brokerage ratings is huge (18.0%), as

huge is the risk that you will accept if you choose broker (ii).

Forex Rating Formula v4.0 – Qexpert.com 9

(4) Trading Cost & Similar, (Weight 28%)

Cost of trading reduces the available funds and should be considered as a top
priority issue when trading online. The Cost of Trading Factor in Rating
Formula v4.0 is weighted 28.0%. Here is the table with the rating analysis of
Factor-2.
Table: Factor Analysis
2. TRADING COST & SIMILAR WEIGHING ANALYSIS WEIGHT

EUR/USD Spread (Smaller or Equal):

< 0.3 pip = 8.0%, | < 0.4 pip = 7.5%, |
< 0.5 pip = 7.0%, | < 0.6 pip = 6.5% |
< 0.7 pip = 6.0%, | < 0.8 pip = 5.5%, |
< 1.0 pip = 5.0%, | < 1.25 pip = 4.5, |
2.1 Typical / Minimum Spread on
< 1.5 pip = 4.0%, | < 1.75 pip = 3.5%, 8.0%
EURUSD
| > 2.0 pip = 3.0%, | < 2.5 pip = 2.0%,
| < 3.0 pip = 1.0%,
Filter: If trading spread is more than 5
pips then 2.1 & 2.4 ratings are forced to
zero {0} value

GBP/USD Spread (Smaller or Equal):

< 1.0 pip = 5.0%, | <1.25 pip = 4.0%, |
2.2 Typical / Minimum Spread on
< 1.5 pip = 3.0%, | < 1.75 pip = 2.5%, 5.0%
GBPUSD
| < 2 pip = 2.0%, | < 2.25 pip = 1.5%, |
< 2.5 pip = 1.0%

USD/JPY Spread (Smaller or Equal):

2.3 Typical / Minimum Spread on < 1.0 pip = 4.0%, | <1.25 pip = 3.5%, |
4.0%
USDJPY < 1.5 pip = 3.0%, | <1.75 pip = 2.5%, |
< 2 pip = 2.0%, | < 2.5 pip = 1.0%

Commissions (Smaller or Equal)

2.4 Trading Commissions Charged No Commissions = 7% | Commissions <

$5 / lot = 3% | Commissions < $8 / lot =
1% | Higher Commissions = 0% 7.0%
Filter: Higher commissions than $20 / lot
will force 2.1, 2.2, 2.3 & 2.4 ratings to
zero (0) value

No = 2.0 %, | Yes = 0 %, | 1-Free /

2.5 Deposit / Withdrawal Commissions 2.0%
Month = 0.5 %

Forex Rating Formula v4.0 – Qexpert.com 10

 2. TRADING COST & SIMILAR WEIGHING ANALYSIS WEIGHT

2.6 Maintenance / Inactive Account

No = 2.0 %, | Yes = 0 % 2.0%
Fees

TOTAL= 28.0%

Adjustment of Factor-2 by keeping the

2.7 ADJUSTMENTS
Overall Rating at maximum 28.0%

ECN = +2.0 % / STP = +1.5 % | Market

2.7.1 Execution +2.0%
Makers = +0.0%

2.7.2 SWAP Charges Future Versions +

FACTOR-2 EXPLANATION:

2.1 – 2.2 - 2.3 Typical / Minimum Spread on EUR/USD,

GPB/USD and USD/JPY (17%) -Rating Method: Selection

Trading Cost is very crucial for every trading style. For rating the size of the
spread, the most popular Forex currencies are used: EUR/USD, GPB/USD and
USD/JPY. These 3 pairs enjoy the highest liquidity in the market and offer by
far the best terms of trading. If a broker is expensive on those 3 pairs he will
be probably expensive in his whole asset index. To make ratings more reliable
and more comparable we prefer to use as inputs Fixed Spreads without
Commissions (when and if they are available by Forex brokers).

Filter: A filter was added on 2.1

If the trading spread exceeds 5.0 pips then automatically the 2.2 rating has
also a zero (0) value. This is happening because a very high spread eliminates
the advantage of not charged trading commissions.

2.4 Commissions Charged, (7%) -Rating Method:

Selection

Some Brokers charge trading commissions, some don’t. Brokers that are
charging low commissions are rated beneficially. In addition, when measuring
commissions charged we choose the exact same account type as when
measuring the spread charged in 2.1, 2.2 and 2.3 ratings.

Filter: A filter was added on 2.4

Forex Rating Formula v4.0 – Qexpert.com 11

If trading commissions on 2.4 rating are very high {more than $20/lot traded}
then the 2.1, 2.2 and 2.3 ratings are forced to zero (0) values. This is
happening because very high commissions are eliminating the advantage of
low or even zero spreads that a Forex broker may offer.

2.5 Deposit / Withdrawal Fees and Commissions, (2%) -

Rating Method: Selection

Withdrawal and Deposit commissions are reducing trading funds and that is
why they are considered as an important issue. We don’t like deposit /
withdrawal commissions so we rate them unfavorably.

2.6 Maintenance / Inactive Account Fees, (2%) -Rating

Method: Selection

Some brokers are charging fees for maintenance and commissions for inactive
accounts. This means extra cost for traders.

2.7 +Adjustments

2.7.1 Execution, (+2%) -Rating Method: Adjustment

The type of execution is very crucial as it affects slippage and the size of the
spread. ECN brokers are usually offer the best trading terms but STP brokers
are not bad also.

2.7.2 SWAP Values

The level of SWAP charged by a broker affects mainly SWING and Position
Traders. This factor is difficult to be measured and it will be used only in
future versions of the rating formula.

RATING FACTOR-2- EXAMPLES

i) An ECN Forex Broker who provides 2 pips spread on EUR/USD, 3 pips

spread on GBP/USD and 3 pips spread on USD/JPY by not charging
commissions or any kind of fees receives 16.0% rating.

ii) A Market Maker Forex Company which provides 2 pips spread on EUR/USD,
3 pips spread on GBP/USD and 3 pips spread on USD/JPY by charging high
trading commissions plus receives 3.0%. If this brokers charges withdrawal
fees but not maintenance commissions, receives an extra 2.0% rating. Grand
Total = 5%.

Forex Rating Formula v4.0 – Qexpert.com 12

(5) Trading Options, (Weight 26%)
The existence of sufficient trading options is also an important issue for
everyone who is trading online. More Trading Options means more
opportunities, and opportunities when investing online really matter.
Table: Trading Options
3. TRADING OPTIONS
3.1 Available Number of Forex Assets
3.2 CFD Trading / Spot Metals
3.3 Demo / Practice Account
3.4 Leverage
3.5 Bonus / Rebate
3.6 Minimum Deposit
3.7 Deposit Methods
Forex Rating Formula v4.0 – Qexpert.com
WEIGHING ANALYSIS WEIGHT
45+ Currency Pairs = 8.0%, |
40+ Currency Pairs = 7.0%, |
35+ Currency Pairs = 6.0%, |
30+ Currency Pairs = 5.0%, |
25+ Currency Pairs = 4.0%, | 8.0%
20+ Currency Pairs = 3.0%, |
15+ Currency Pairs = 2.0%, |
10+ Currency Pairs = 1.0%, |
Less than 10 pairs = 0%
CFD Trading = 2.0 % | Only
2.0%
Spot = 1.0 % | Nothing = 0%
Yes = 2.0 %, No = 0.0 % 2.0%
Leverage Rate (Higher or
Equal):
2.0%
>100:1 = 2.0%, | > 75:1
=1.5%, >50:1 = 1.0%
■ Bonus (Higher or Equal):
>50% = 6%, | >40% = 5%, |
>30% = 4%, | >20% = 3%, |
>15% = 2%, | >10% = 1%
6.0%
■ Rebate (Higher or Equal):
>30% = 6%, | >25% = 5%, |
>20% = 4%, | >15% = 3%, |
>10% = 2%, | >5% = 1.0%
(Smaller or Equal):
Min Deposit < $500 = +1%, | 1.0%
Min Deposit < $1,000 = +0.5%
For each deposit method
available = 0,5%, max = 5 2.5%
methods
13
 3. TRADING OPTIONS WEIGHING ANALYSIS WEIGHT

For each withdrawal method

3.8 Withdrawal Methods available = 0,5%, max = 5 2.5%
methods

TOTAL= 26.0%

Adjusting Factor-3 by keeping

3.9 ADJUSTMENTS
the Overall Rating 26.0 %

3.9.1 More than 100 Currency pairs Yes = 1.0 % / No = 0 % +1.0%

3.9.2 Interest on Deposited Funds Yes = 0.50 %, No = 0.0 % +0.50%

3.9.3 Trading Competitions /

Yes = 0.25 % / No = 0 % +0.25%
Championships

FACTOR-3 EXPLANATION:

3.1 Available Number of Currency Pairs, (8%) -Rating

Method: Selection

The higher the number of currency pairs available, the higher the potential for
traders to exploit trading opportunities in the Forex Market. This is valid for all
trading styles.

3.2 CFD and Spot Metals Trading, (2%) -Rating Method:

Selection

Furthermore, the wider the variety of trading assets and tools (CFD trading
etc) indicates a Forex Broker company that tries today to expand its services
and adapt on more customer needs.

3.3 Demo / Practice Account, (2%) -Rating Method:

Selection

The existence of Demo Accounts helps traders to make the right choices
without loosing precious time. Every Forex Broker that respects himself must
offer a demo account.

3.4 Leverage, (2%) -Rating Method: Selection

The magnitude of the capital leverage adds extra capabilities to Forex traders
and that is why it is considered as an important parameter of quality Forex

Forex Rating Formula v4.0 – Qexpert.com 14

brokerage. Of course high leverage means high risk that is why we rate
maximum brokers offering leverage of 100:1. Higher leverage than that,
should be better avoided.

3.5 Bonus / Rebate, (6%) -Rating Method: Selection

The higher the bonus or rebate offered, the larger the available funds. We
rate them the same but rebates is the choice of pro Forex traders.

3.6 Minimum Deposit, (1%) -Rating Method: Selection

The smaller the minimum deposit the easier a trader can ‘test’ a Forex broker
on real conditions.

3.7 Number of Deposit Methods, (2.5%) -Rating Method:

Accumulation

The wider the variety of Deposit Methods the more suitable a broker becomes
to his customer needs. Traders who are able to fund their accounts with their
custom method save precious time.

3.8 Number of Withdrawal Methods, (2.5%) -Rating

Method: Accumulation

Variety of withdrawing methods is of equal importance.

3.9 +Adjustments

3.9.1 More than 100 Currency pairs (+1%) -Rating Method:

Adjustment

Brokers who are able to offer such an extensive currency index are rated
favorably, but in reality only a few brokers are able to offer more than 100
Forex pairs.

3.9.2 Interest on Deposited Funds, (+0.50%) -Rating Method:

Adjustment

This is a very interesting account option that unfortunately is offered by only

a few Forex Brokers.

Forex Rating Formula v4.0 – Qexpert.com 15

3.9.3 Existence of Trading Competitions / Championships, (+0.25%)
-Rating Method: Adjustment

A trading competition (Real / Demo) can provide easy money for traders, but
only a few traders actually participate so the rating weight of this factor
remains very low (+0.25%)

RATING FACTOR-3- EXAMPLES

i) A Forex Broker providing 50 Forex pairs, plus CFD trading and a demo
account, receives 12%. Now, if that broker provides leverage at 50:1 and a
deposit bonus of 30% receives an extra 5%. If that broker provides 4 deposit
and 4 withdrawal methods and minimum deposit of $1,500, receives an
additional 4%. And according to the adjustments made, if that broker offers a
trading championship but no interest at funds, receives an additional 0.25%
rating. Grand Total rating of 21.25%.

ii) A Forex Broker providing 12 Forex pairs, without CFD trading but with a
demo account, receives 3%. If it provides leverage at 100:1 and a deposit
bonus of 40% receives 7%. If 2 deposit and 2 withdrawal methods are
available and the minimum deposit is $100, receives an additional 3%. And
according to the adjustments made, if that broker offers no contests and no
interest on funds, receives no extra rating. Grand Total rating of 13.00%.

Forex Rating Formula v4.0 – Qexpert.com 16

(6) Technology & Innovation, (Weight
20% )

The existence of a technological efficient trading environment is certainly a

crucial issue when trading Forex online. Efficient technology makes trading
more enjoyable and more profitable, especially as concerns intraday trades.
Furthermore, a broker that invests today to make his services more
technological advanced means a broker with a long-term perspective and a
customer-oriented business philosophy.

Table: Technological Efficiency & Innovation

4. TECHNOLOGY WEIGHING ANALYSIS WEIGHT

Each Supported Platform =

4.1 Number of Available Platforms 5.0%
1.0%, max = 5 platforms

Slippage on Execution (Smaller

or Equal):
Slippage < 0.5 pip = 4.0% |
Slippage < 0.75 pip = 3.5% |
4.2 Slippage Slippage < 1 pip = 3.0% | 4.0%
Slippage < 1.25 pip = 2.5% |
Slippage < 1.5 pip = 2.0% |
Slippage < 1.75 pip = 1.5% |
Slippage < 2.0 pip = 1.0%

4.3 Automated Trading (Expert

Yes = 2.0 % / No = 0 % 2.0%
Advisors)

4.4 MT4 / MT5 Availability Yes = 2.0 % / No = 0 % 2.0%

Each Supported Device = 0.50

% (iPhone, iPad, Android,
Windows Mobile, Blackberry),
4.5 Mobile Trading 2.0%
max = 4 devices
* Special HTML5 Apps that are
covering all devices = 2.0 %

Yes both = 1.0 % | Yes only

4.6 Scalping / Hedging Hedging or Scalping = 0.5% | 1.0%
No = 0 %

24/7 = 1.0 %, | 24/6 = 0.5 %,

4.7 Customer Service 4.0%
| 24/5 = 0 %, | email = 1.0%, |

Forex Rating Formula v4.0 – Qexpert.com 17

 4. TECHNOLOGY WEIGHING ANALYSIS WEIGHT

Phone = 1.0 %. | Live Chat =

1.0 %, | Skype = 0.5 %, | Call-
Back = 0.5 %

TOTAL= 20.0%

Adjustment of Factor-4 by
4.8 ADJUSTMENTS keeping the Overall Rating at
maximum 20.0 %

PAMM = 0.5 % / Simple

4.8.1 PAMM Managed Accounts +0.5%
Managed = 0.25%, No = 0 %

4.8.2 API Trading Yes = 0.5 % / No = 0 % +0.5%

FACTOR-4 EXPLANATION:

4.1 Number of Available Platforms, (5%) -Rating Method:

Accumulation

A wide variety of trading platforms provides traders with more options.

4.2 Slippage, (4%) -Rating Method: Selection

Execution delays and re-quotes are certainly some of the worst enemies of
Short-Traders. Furthermore, Position and Swing Traders can also be harmed
by execution delays. Someone who trades in the long-run has to enter in the
short-run. The timing of that entrance usually occurs after some important
news have ‘triggered’ a trade. Exactly at that time, high slippage and delays
can lead swing-traders to pay very high entrance premiums.

4.3 Automated Trading (Expert Advisors), (2%) -Rating

Method: Selection

The ability to receive signals from Expert Advisors (i.e. Zulu Trade and
Tradency's Mirror Trader) is an important trading feature.

4.4 Mobile Trading, (2%) -Rating Method: Accumulation

Mobile trading is not just a trend, it is the future of trading.

Forex Rating Formula v4.0 – Qexpert.com 18

4.5 MT4 / MT5 Availability, (1%) -Rating Method:
Selection

MetaTrader platform is a clear standard in the Forex industry.

4.6 Scalping and Hedging, (1%) -Rating Method: Selection

The ability to scalp Forex currencies is an issue important for only a few
traders, and that is why the total weight of this sub-factor is just 1%.

4.7 Customer Service, (4%) -Rating Method: Accumulation

Online services require the existence of a high-quality customer service. We

rate 24/6 and 24/7 customer service, and add rating points to the existence
of email, Phone, Call-Back, Skype and Live Chat.

4.8 +Adjustments

4.8.1 PAMM / Managed Accounts, (0.5%) -Rating Method:

Adjustment

Managed accounts have become very popular nowadays so we rate their

existence favorably. We rate PAMM with maximum +0.5% and simple
Managed Accounts with +0.25%.

4.8.2 API Trading, (0.5%) -Rating Method: Adjustment

The availability of API trading indicates furthermore that a Forex Broker focus
on state-of-the-art trading technology.

RATING FACTOR-4- EXAMPLES

i) A Forex Broker providing 5 trading platforms, including MT4, with slippage

1.5 pip, full mobile trading and by enabling automated trading and scalping /
hedging receives 14.0%. In addition if that broker offers phone, email, 24/6
and live chat receives an extra 3.5%. Finally if it provides PAMM Accounts but
no API trading receives +1%. Grand Total Rating is 18.5%.

Forex Rating Formula v4.0 – Qexpert.com 19

ii) A Forex Broker providing 2 trading platforms, including MT4, with slippage
2.0 pip, supporting 2 mobile devices and by rejecting automated trading,
scalping and hedging receives 6.0%. In addition if that broker offers email,
24/5, phone and live chat it receives an extra 3.0%. If that broker provides
simple Managed Accounts but not API trading receives an extra +1%, from
adjustments made. Grand Total Rating is 10.0%.

Forex Rating Formula v4.0 – Qexpert.com 20

If we sum the results of Rating Factors 1, 2, 3, and 4 we are able to calculate
the Overall Broker's Rating.
4-FACTORS RATING WEIGHT

Factor-1: Safety of Trading Funds 26.00%

Factor-2: Overall Trading Cost 28.00%
Factor-3: Trading Options 26.00%
Factor-4: Technological Efficiency 20.00%
= 100.00%

Final Words -Towards the Future

The idea, and the implementation, of the series of Rating Formulas is unique,
but it has still a long way to go before it becomes completely optimized.

Thinking at the future and given the upcoming problem of the web robots,
this way of Rating Financials will become an industry standard, sooner or
later. The reason is that it can help traders to choose better brokers and the
industry to become a ‘SAFER’ place for everyone, including the descent
Brokerage Companies which dislike this dirty ‘game’ of user ratings.

Scam Brokers are not jut harming Traders but they also add an extreme level
of Systemic Risk in the whole Financial Industry. Every professional
participating in the Financial Industry today is obligated to pay a ‘Premium’
because of some unethical companies which are usually not regulated and
often choose Offshore Countries as their Headquarters Base in order to
exploit inefficiencies in the local legislative framework regarding corporate
supervision.

■ Giorgos Protonotarios

Financial Analyst –Web Projects

L COMPARISONS at TradingCenter.org

► Forex ► CFD Exp

► Expert
C O M PA R E :
Brokers Broker
ers Advisor s

Forex Rating Formula v4.0 – Qexpert.com 21

Series of Rating Formulas © George Protonotarios 2014

COPYRIGHT INFORMATION

ALL RIGHTS RESERVED. No part of this eBook (including text, information,

tables, analysis, resources and images) may be copied, reproduced, mirrored
or sold.

DISCLAIMER AND LEGAL NOTICE

The information presented in this eBook represents the view of the author.
Every attempt has been made by the author to verify all information included
in this eBook, but there is no guarantee about the accuracy and the reliability
of any information presented in this eBook. In addition, the Rating Formula
v4.0 eBook may include affiliate links. This eBook is not intended for use as a
source of financial or investment advice.

RISK WARNING

There is considerable exposure to risk when trading Forex, Futures and Binary
Options. Trading Forex, Binary Options and other leveraged products involves
a significant level of risk and is not suitable for all investors. Before
undertaking any such transactions you should ensure that you fully
understand the risks involved and seek independent advice if necessary. The
possibility always exists that you could sustain a substantial loss. Never trade
with funds that you may need in the future. Past performance is not
necessarily indicative of future results. Any opinions, suggestions, brokers,
systems, services, software, reviews, promotions, bonus, rebates, links and
web-sites mentioned on this eBook are provided as general market
commentary, and do not constitute investment advice in any way.

Forex Rating Formula v4.0 eBook - Copyright © March 2014

George Protonotarios -All rights reserved worldwide
Distribution by Qexpert.com

www.Qexpert.com

Forex Rating Formula v4.0 – Qexpert.com 24