How we score brokers
A published formula, built mainly from regulator data.
Each broker gets a score from 0 to 10, made up of five parts. The parts are weighted and added together, then rounded to one decimal place.
| Part | Weight | What it measures |
|---|---|---|
| Regulation strength | 40% | Based on the strongest regulator licensing the broker, plus extra tier-1 and tier-2 licences. |
| Licence status | 20% | Whether any licence has been revoked or has expired. |
| Track record | 15% | Years in business: 0.5 points per year, up to 10. |
| Transparency | 15% | Publicly listed parent, licences disclosed, head office published, client money segregated. |
| Regulator alerts | 10% | Deductions for regulator alerts against the broker's own companies or websites. |
1. Regulation strength (40%)
We group regulators into four tiers by how well they protect retail clients: leverage limits, negative balance protection, capital requirements, compensation schemes and enforcement record. The broker's strongest licence sets the base points. Each further tier-1 or tier-2 licence adds a bonus, up to a maximum of 10.
| Tier | Base points | Bonus per extra licence | Regulators |
|---|---|---|---|
| Tier 1 | 8.5 | 0.3 | FCA, ASIC, NFA / CFTC, SEC / FINRA, BaFin, FINMA, MAS, JFSA, CIRO, Finanstilsynet, CBI, SFC, CSSF |
| Tier 2 | 6.5 | 0.15 | CySEC, DFSA, FSRA, CMA (UAE), FSCA, FMA, ISA, EFSA, FSC (BG), KNF, MFSA, LB |
| Tier 3 | 4.5 | 0 | CMA (KE), BMA |
| Offshore | 2.5 | 0 | FSC (MU), FSA (SC), SCB, VFSC, CIMA, BVI FSC, FSC (BZ), Labuan FSA, CBCS |
Licences we've confirmed on a regulator source, or that the broker lists on its own website, count in full. Licences reported only by third parties count at 90% until we verify them.
2. Licence status (20%)
A broker starts with 10. We deduct 4 points for each licence that has been revoked or has expired. A broker with no licence at all gets 0.
3. Track record (15%)
Half a point per year in business, up to 10 (so 20 years or more scores the maximum).
4. Transparency (15%)
- Parent company is listed on a stock exchange: 3 points
- Licensed companies and licence numbers are disclosed on the website: 3 points
- Head office address is published: 2 points
- Client money is held in segregated accounts: 2 points
5. Regulator alerts (10%)
We search the IOSCO I-SCAN database, where regulators worldwide publish alerts. A broker starts with 10 and loses points for each alert against its own companies or websites: 4 points if the alert is from the last 2 years, 2 points if it's 2 to 5 years old, and 0.5 points if it's older. The minimum is 0.
Alerts about scam sites impersonating a broker are shown on its page but don't affect the score, because the broker isn't responsible for them.
Licence labels
- Verified on register: we confirmed the licence on an official regulator source.
- Disclosed by broker: the broker lists the licence on its own website. We link to the register so you can check.
- Not yet verified: the licence is reported by third-party sources and we haven't confirmed it yet.
Sponsored brokers
We earn commission from some brokers. These brokers are labelled “Sponsored” wherever they appear, and their links are marked as sponsored. See our Affiliate disclosure.
Data sources and updates
Licence data comes from regulator registers, brokers' own legal disclosures and, where we haven't yet verified a licence, third-party broker research sites. Every licence links to its source. Regulator alerts come from IOSCO I-SCAN and regulators' own websites. Data was last checked on 12 Oct 2026.
Found an error? Brokers and readers can ask us to correct licence data. We'll update it once we can confirm the change on the regulator's register.