Trust score by Trusted Broker Reviews

At Trusted Broker Reviews, we prioritize a trader’s safety. That’s why we review brokers and present a trust score to let traders know if they can trust a broker. In the uncertain trading world, it can be difficult for a trader to rely on a broker. 

These days, with several new brokers in the market, traders can find it difficult to trade with one. Our team understands that not all brokers can be trusted, as not all prioritize their client’s best interests. 

That’s why we set out to help traders find whether they can trust a broker with their funds.

Introducing the trust score

Our goal is to ensure smooth trading for traders. We want traders to have a platform where they can trade securely. To ensure the same, we developed a tool, the trust score. 

The trust score is a rating we give brokers to ascertain their trustworthiness. Traders can look at this algorithmic rating for a quick and comprehensive assessment of a broker’s reliability. 

Our research team conducts extensive research to assign a score to a broker. In addition, the team engages in data collection. Our trading experts also gather a trading experience on different trading platforms. 

With the help of a trust score, our team assigns a numerical rating from 1 to 5 to each broker. This rating allows traders to make informed decisions.

How do we calculate the trust score?

We consider many things when arriving at a trust score. Our expert team considers and evaluates the following aspects when ascertaining the broker’s dependability.

  • Years of operation
  • Corporate structure 
  • Regulatory licenses held (number and quality)
  • Expert opinion score

In addition to these aspects, we also check whether the broker is regulated. Checking the regulatory licenses of the broker helps us know what kind of trading experience a trader will have with the broker. 

Usually, brokers with regulatory licenses are more compliant with the trading laws. Therefore, trading with such brokers allows traders to have peace of mind. 

We incorporate regulatory licenses from various jurisdictions and countries into our analysis. 

So, our trust score algorithm contains regulatory licenses that brokers get from various jurisdictions. These licenses are of three types divided into 3 tiers. Traders can trust brokers that fall within Tier-I jurisdictions. 

Usually, a trader’s funds are much safer with these brokers than those in the industry. However, if a broker falls into the Tier-III jurisdiction, a trader should think clearly about whether or not to trade with such a broker. 

Tier I jurisdictions (High Trust)

  • Investment Industry Regulatory Organization of Canada (IIROC)
  • Australian Securities & Investment Commission (ASIC) 
  • Central Bank of Ireland (CBI) 
  • Financial Conduct Authority (FCA)
  • Monetary Authority of Singapore (MAS) 
  • Commodity Futures Trading Commission (CFTC) 
  • Swiss Financial Market Supervisory Authority (FINMA)
  • Securities Futures Commission (SFC)
  • Financial Markets Authority (FMA) 
  • Japanese Financial Services Authority (JFSA)

Tier 2 jurisdictions (Average Trust)

  • Central Bank of Russia (CBR) 
  • Financial Sector Conduct Authority (FSCA)
  • Israel Securities Authority (ISA) 
  • China Banking Regulatory Commission (CBRC) 
  • Securities and Exchange Board of India 
  • Securities and Exchange Commission (Thailand)
  • Cyprus Securities & Exchange Commission (CySEC) 
  • Dubai Financial Services Authority (DFSA) 

Tier 3 jurisdictions (Low Trust)

  • Cayman Islands Monetary Authority (CIMA) 
  • Securities Commission of the Bahamas (SCB) 
  • BVI Financial Services Commission (FSC) 
  • Bermuda Monetary Authority (BMA) 
  • Mauritius’ Financial Services Commission (FSC) 
  • Vanuatu Financial Services Commission (VFSC)
  • Financial Services Commission (FSC) 

Trust score ratings explained:

As mentioned, the trust score ratings usually depict a value of up to 5. Therefore, brokers with a higher trust score are more reliable than other brokers operating within the industry.

Highly trusted brokers (Score = 5/5)

Brokers that received a “Highly Trusted” rating are the most trustworthy in the industry. We can confidently recommend traders to join such trading platforms. Traders from our team have traded with such brokers numerous times. 

However, traders must always stay cautious while trading on any platform. After all, unforeseen challenges can still arise, and a trader might end up losing funds.

Trusted brokers (Score = 4/5)

The “Trusted” rating yet again represents dependable brokers. These trading platforms are only one rank lower than the highly trusted category. Usually, such differences can arise because brokers have differences in regulatory licenses. 

Sometimes, there can be loopholes in the corporate structures of the platforms that may contribute to a lower rating. But traders can still trust these brokers as they offer the best. 

Average risk brokers (Score = 3/5)

Traders can open trading accounts and trade with brokers in the “Average Risk” category. These trading platforms are generally safe. However, traders cannot fully rely on them. 

Opening a trading account with such brokers might require traders to dig deep into the history of the brokers. Verifying whether such brokers have licenses is essential. 

High risk brokers (Score = 2/5)

Brokers falling within this category require close scrutiny; traders should think twice before considering opening an account with high-risk brokers. These brokers often lack credible regulatory licenses, or they might not hold any. 

Also, it is possible that these trading platforms might have put traders into financial issues before. 

Do not trust brokers (Score =1/5)

Traders should avoid opening accounts with brokers having a “Do Not Trust” rating. Trading with these brokers might make traders lose their funds. 

At Trusted Broker Reviews, we want every trader to trade safely and securely. So, traders can use our trust score ratings to make informed decisions and trade with a broker with full confidence.

Most asked questions:

What is the trust score, and how does it help traders?

The Trust Score is our rating system to provide traders with a quick and comprehensive assessment of a broker’s trustworthiness. To present this score, we consider factors like years of operation, regulatory licenses, and expert opinions. This score helps traders determine whether they can trust a broker.

How do you categorize brokers based on the Trust Score?

How do you categorize brokers based on the Trust Score?
Highly Trusted brokers have scores ranging from 5/5.
Trusted brokers fall in the range of 4/5.
Average Risk brokers have scores from 3/5.
High-Risk brokers have scores from 2/5.
Brokers with scores 1/5 receive a “Do Not Trust” rating.

Can traders rely solely on the Trust Score when choosing a broker?

Trust Score provides valuable insights into a broker’s trustworthiness. But traders should always conduct their research. Before making their final choice, they should analyze the broker’s credibility, feedback from clients, trading conditions, and support for clients.