Forex broker reviews are all over the internet. If you type in the name of a forex broker and include a search term which asks for a review of that broker, you are likely to get hundreds of results. However, all forex broker reviews are not created equal. There are reviews which are written simply to sell a forex broker’s services to the public. These are usually written by affiliates who may get a compensation for the service. There are also reviews which are written specifically to de-market a forex brand. Such forex broker reviews are usually paid for by competitors of the forex broker in question. Either way, the reviews do not help forex beginners looking for a broker to do business with because they do not provide an accurate rating of a forex broker.
The forex broker reviews that make a lot of sense are those which are written from an objective perspective, preferably by a user that has actually traded with a live account on that broker’s platform. With such reviews, there are no assumptions and no fake stories (or fake news as Donald Trump would say). You actually get the true picture of what it means to trade real money with such a broker.
The big question usually is: how do you get hold of these reviews, seeing that the internet is riddled with reviews that either sell or de-market a broker? Well, here are a few sources that you can try out.
- Independent forex online forums
- Websites about trading that provide forex reviews
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Independent forex online forums are good places to start when you are searching for objective reviews of forex broker platforms. Here you will get firsthand information about the experiences that many users have had with specific, named forex brokers. Many of these forex online forums have been around since the early 2000s and are truly a compendium of resources which also include objective forex reviews.
YouTube can also be a good source of forex broker reviews. The great thing about YouTube is that these reviews are usually in video form. You see the characters of those involved, and this allows you to quickly take screenshots and see if the individual providing the review is a real trader or just a paid actor. There are software which can allow you crosscheck the image of the reviewer with any stock photos online. Yours truly has been able to track down several paid actors and used the information to identify fake reviews. Another benefit of YouTube reviews is that you also get to see in video, what has really gone down between the trader and the broker, as such reviews contain screenshots of activity on the broker’s platform.
You can also get a genuine, objective forex broker review from a website about trading that provides all types of forex reviews. We are talking not just about reviews of forex brokers, but also reviews of forex expert advisors, indicators, platforms, etc. Some of these websites also assign a rating to a forex broker based on how well they rank in the review parameters. Some rating systems use a percentage score, while others use a star rating system (3-stars,4-stars, 5-stars, etc), just the way hotels are rated. Some sites even go the extra mile to provide extra information about each broker that they have reviewed in addition to the rating system.
Using Broker Ratings as a New Forex Trader
New traders need to know how to use the broker ratings to make a broker selection. Let us assume that a new trader has found a resource on a website where objective reviews are provided. How would such a trader use the reviews and ratings to make a forex broker selection? Here are a few tips.
A ratings review will usually assign stars to each broker. These stars are not usually assigned on a random basis. Certain metrics of broker performance are used for the evaluation and rating of each broker. These performance metrics include things like:
- Account capital requirements
- Ease of platform use
- Ease of making deposits and withdrawals
- Quality of customer support
These are not the only metrics, but these are things that forex traders just entering the market usually like to know about. So try to find out why these ratings have been assigned to a broker. Usually, the reviews contain explanations of each metric so as to help users understand better how the ratings were made.