FXSharp Review Methodology v2 is a mandatory research and verification protocol applied before every broker review. This page explains step-by-step how every data point and every numerical score you see in a broker review on our site is calculated.
Methodology v2 was calibrated in May 2026 to fix structural bias in the original system. v1 over-penalized brokers that operate in a single jurisdiction (US-only futures brokers, UK-only equity brokers) and brokers running proprietary platforms instead of MetaTrader. v2 treats those as defensible structural choices, not weaknesses.
Scoring System (0-10 Scale)
Each broker is scored across seven dimensions. All scores are between 0-10 and rounded to 1 decimal place. Scores are not subjective — they are calculated from the sum of the criteria below. If there is no verified source, that criterion is counted as 0.
v2 Design Principles
- Neutral on market breadth — a single-jurisdiction Tier-1 broker (e.g. a US-only NFA/CFTC FCM) is not penalized for narrowness. Multi-jurisdictional gets a bonus, single is not punished.
- Platform-agnostic — proprietary platforms (TWS, NinjaTrader, Webull, xStation) score equal to MT4/MT5. The MT-mandatory bias is removed.
- Public-parent credit — a privately-held subsidiary of a publicly-listed audited parent (Moomoo→Futu Holdings, NinjaTrader→Kraken) gets the same business-transparency credit as a directly-listed broker.
- Enforcement nuance — small fines (under $2M total in 5 years) are noted but not catastrophic. Material fines (over $10M) hit hard. License revocation is fatal.
- Target consensus — outputs land within ±1.5 points of established editorial consensus (BrokerChooser, ForexBrokers.com, Investopedia, NerdWallet). WikiFX is not used as a benchmark because its scoring is affiliate-driven.
1. License Score
- Tier-1 regulator count × 2.0 (max 8 points). Tier-1: FCA, ASIC, BaFin, FINMA, MAS, JFSA, NFA, CFTC, SEC, FINRA, IIROC/CIRO, FMA-NZ, OSC, BCSC.
- NFA and CFTC count as two separate Tier-1s (different oversight scopes — NFA is a self-regulatory body, CFTC is a federal agency). SEC and FINRA also count as two separate Tier-1s.
- Tier-2 regulator count × 0.5 (max 2 points). Tier-2: CySEC, FSCA, DFSA, BMA, CMA-Kenya, FSC-Mauritius (only when actively monitored, not a paper license).
- Each license has entity_name and license_no filled and verified in the regulator's public register: +1
- Not on any Tier-1 warning list AND no license revoked or suspended in 5 years: +1
- Enforcement adjustment (applied last): total fines/settlements over the last 5 years under $500K → 0; $500K-$2M → -0.5; $2M-$10M → -1.5; over $10M → -3.0; an active license revocation forces license=0.
- Floor at 0; cap at 10.
2. Business Model Score
- Years operating: 25+ → 4, 15-24 → 3.5, 10-14 → 3, 5-9 → 2, 2-4 → 1, <2 → 0.5
- Publicly listed on a major exchange (FTSE / NASDAQ / NYSE / ASX / HKEX / TSE): +2.5
- Subsidiary of a publicly-listed parent (e.g. Moomoo under Futu, NinjaTrader under Kraken): +2.0 (mutually exclusive with the line above)
- Annual audited financials publicly available, either own filings or via a public parent: +1.5
- Ultimate ownership structure transparent (UBO disclosed in filings or press releases): +1
- Headquartered in a Tier-1 jurisdiction (US, UK, EU, AU, CA, JP, SG, CH, NZ): +1
- Cap at 10.
3. Software Score
Three buckets, each capped, then summed.
Platform bucket (max 4):
- Award-winning or industry-recognized proprietary platform (TWS, NinjaTrader, xStation, ProRealTime): +2.0
- Generic proprietary platform: +1.0
- MT4 supported: +1.0
- MT5 supported: +1.0
- cTrader: +1.0
- TradingView integration: +1.0
Mobile and access bucket (max 3):
- Mobile app rating ≥ 4.5: +2; 4.0-4.5: +1; 3.0-4.0: +0.5
- Native iOS and Android apps: +0.5
- 10+ language support: +0.5
Developer and depth bucket (max 3):
- REST/FIX API or scripting language (NinjaScript, Pine Script, Expert Advisor on MT): +1
- Unlimited demo account (no time or balance limit): +1
- Industry award (Investopedia best-of, BrokerChooser top-10, Finance Magnates): +1
4. Risk Control Score
- Negative balance protection on retail accounts (or N/A for US futures + CFTC customer-segregation applies): +2.5
- Client funds segregated at top-tier banks: +2
- Covered by a compensation scheme (FSCS / ICF / SIPC / CIPF) or equivalent CFTC futures customer protection: +2
- No insolvency or default events in the last 5 years: +1.5
- Stop-out level explicitly documented: +1
- Risk warning and retail loss percentage publicly disclosed: +1
- Cap at 10.
5. Regulation Score
- Tier-1 regulator count × 2 (max 8). NFA + CFTC count as 2 Tier-1s, SEC + FINRA count as 2 Tier-1s, consistent with the License score.
- MiFID II compliant (EU or UK): +1
- Dual US oversight (CFTC and SEC together, or NFA and FINRA together): +1
- Cap at 10.
6. Influence Index
- Active licensed operations in 5+ countries: +3 (3-4 countries: +1.5)
- 1M+ active customers: +2 (500K-1M: +1.5; 100K-500K: +1)
- Monthly trading volume disclosed and ≥ $100B: +2 ($10B-100B: +1)
- 10+ news mentions on Bloomberg, Reuters, or FT in the past 12 months: +1.5 (5-10: +1)
- Tier-1 industry award (Finance Magnates, ForexBrokers, Investopedia, BrokerChooser top-10): +1.5
- Cap at 10.
Influence index letter grades:
- A+ → 9.5-10.0 (global dominance)
- A → 9.0-9.49
- B+ → 8.0-8.99
- B → 7.0-7.99
- C → 6.0-6.99
- D → below 6.0
7. Overall Score (Weighted Formula)
overall = regulation × 0.25 + license × 0.20 + risk_control × 0.20 + business × 0.15 + software × 0.10 + influence × 0.10
Rounded to 1 decimal place. Example: if all sub-scores average 8.7, the overall score is 8.7.
Fairness Sanity Check
For licensed brokers, after computing the overall score, the editorial team performs a benchmark sanity check:
- Look up the broker's editorial consensus from at least two of: BrokerChooser, ForexBrokers.com, Investopedia, NerdWallet, StockBrokers.com (latest year).
- Convert each rating to a 0-10 scale (e.g. 4.2/5 stars becomes 8.4).
- If the FXSharp computed overall is more than 2.5 points below the consensus average, the editor re-audits each sub-score for structural bias rather than bumping the number arbitrarily.
- If the FXSharp computed overall is more than 2.0 points above the consensus, the editor re-scans regulator enforcement and warning lists for missed negative findings.
- WikiFX is not used as a benchmark because its scoring is affiliate-driven and inflated.
- Unregulated, suspicious, or defunct brokers skip this check entirely. Their floor is 0; no benchmark adjustment.
Source Verification Stack
Every broker review starts with a mandatory source scan against:
- Regulator public records: FCA Register, FINRA BrokerCheck, SEC EDGAR / IAPD, NFA BASIC, CySEC, ASIC Connect, FSCA, DFSA, BaFin, FINMA, JFSA, MAS, IIROC/CIRO.
- Public warning lists: FCA Warning List, ASIC banned/warning lists, CySEC warnings, IOSCO investor alerts, country-specific blacklists.
- Independent aggregate metrics: Trustpilot rating and review count (the aggregate metric only — individual user reviews are not quoted), BrokerChooser, ForexBrokers.com, FX Empire (cited with year and finding).
- Broker's own materials: official site, contact and HQ details, parent company and ownership disclosure, license numbers and regulators the broker discloses.
Every license claim falls into one of three buckets: verified active, verified negative (warning list, revoked, suspended), or not verified. All three are reported with source attribution; none are skipped or softened.
Editorial Independence
FXSharp does not accept affiliate commissions, sponsorship, or paid placements. Brokers do not pay to be listed and cannot pay to alter their scores. Score changes happen only when the underlying data changes — for example, a new license, a new enforcement action, or a methodology recalibration documented on this page.
Last methodology revision: May 2026. Next scheduled review: November 2026.