Why shouldn’t we trust the ratings and how to avoid mistakes when choosing the Forex broker

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Once again looking through information on the Internet about the news of the Forex brokers, I have a  thought: if there is a rating of the best Forex brokers, may be there a list of the worst? Hammered into Google search, the corresponding query… my query with the word “worst” in search engine gave at least 3 pages with the title of the article “best Forex brokers”. Logical would be to see in these ratings the worst in the end of the list, but here I was disappointed: the rating appeared from 5 to 10 brokers when there are more than 30 (of the known). And here came the next question: can the rating of Forex brokers be true at least for some part?

The rating of Forex brokers

In an effort to lure customers, the brokerage companies used many methods and manipulation of information in the media (statistical surveys, rankings, etc.) – it is one of the most effective ways. Judge for yourself which query in a search engine will introduce the inexperienced trader to select a broker? Something like “Best broker” or “broker Rating”, right? The websites with relevant SEO-optimization adapt to these queries.

In other words, 99% of the ratings do not actually correspond to reality, as they are the advertising platform of one or more brokers. How the ratings are arranged, where different companies appear as leading one?

Important: please note that the brokers presented on the website of the investment exchange portal Investlb.com are not rated, their order — just the order and no more. The website does not endorse any of the brokers, but rather trying to objectively provide information without criticism and advertising, giving the opportunity to you, to traders, to test the performance of the broker and to enter their real reviews (false reviews well tracked and deleted!) about a particular broker.

As I asked myself some questions, I came to the conclusion that the rating of Forex brokers is nothing like self-deception, and here’s why:

  • the Forex broker rating can only be made by a large group of traders (preferably from different cities, countries). The evaluation of connection should be made, the fulfillment of offered data for transactions, the reliability (withdrawal of money), the veracity of the reviews (Yes, and how to keep track of them all?) etc.;

In my opinion, none of known to me independent private companies not have such financial, human and time resources, allowing annually to conduct such research. Except for one category of organizations! These researches are quite able to be hold by those who have permanent access to financial statements of brokers who are considering customer complaints (i.e., actual customer dissatisfaction) — regulators! But in Russia it is difficult with the regulators and SROs created by the same brokers, so can not be objective.

  • In making the rankings, you should not focus on advertising, articles in media, etc. You may only check the broker on the principle of “mystery shopper” with complete anonymity. There is the need of professional traders who understand the difference in the work of a broker having experience of stock trading. But then their remuneration shall be equal to the average earnings in the Forex market. Hardly anyone is interested in that kind of investment in Russia;
  • the cost of review on the Internet is 30 rubles. And to buy them is very easy.

It is enough to give few examples: MMS — broker, who had top positions in the search engine offices in Russia and Ukraine proved to be empty. One of the leaders of the Russian ratings (while broker is working, from the ethics of the title I would not not say) is still leading in the number of negative reviews. They could be called a purchasable, but there are examples of real applications to the courts, and the number of reviews is critical. But the company feels great in the vastness of Russia.

More cunning brokers are go another way. When trying to find information on ratings, the trader gets to an article, where the multiple reasons are described why all the ratings on the Internet “are not a serious research.” And then give a link to their personal rankings, which is 100% true. However, the methods of its preparation somehow are tactfully silent.

There is another interesting problem: if the book reviews are not true — it’s not so bad, because the negative will remain and will cause traders to pause. But some companies went further and paid to delete real negative reviews. An example of this offer is below.

rating of brokers in Russia

For the sake of interest, I went to the site of the rating of this Forex broker. I think you will draw conclusions from the output on screen yourself.

select Forex broker

Summary. The rating of Forex brokers that you will see in the search engines — it’s just a marketing move to lure the novice trader. Do not be tempted, do not trust these ratings, think for yourself, communicate on forums, this is the only way you can really choose the best broker. The best option — choosing a broker by number of clients. After all, thousands of traders are unlikely to make a mistake? But this parameter is 100% not worth trusting as well.

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