Scoring Methodology

The Verotify Score™ is a comprehensive 0-100 rating system that evaluates brokers across five critical dimensions. Our methodology is transparent, data-driven, and designed to give traders a clear, objective assessment of broker quality.

Score Components

Regulation & Safety (35%)

The most critical factor in broker evaluation

Regulation is the foundation of broker safety. We assess:

•Regulatory Tier: Tier 1 regulators (FCA, ASIC, SEC, CFTC) receive 90 points; Tier 2 (CySEC, FSA Japan) receive 70 points; Tier 3 receive 40 points; offshore regulators receive 20 points
•Multiple Licenses: Bonuses for holding multiple Tier 1 or Tier 2 licenses
•License Status: Penalties for suspended or revoked licenses
•Client Fund Protection: Segregated accounts, compensation schemes

Trading Conditions (20%)

Cost and quality of trading execution

Trading conditions directly impact profitability. We evaluate:

•Spreads: EUR/USD spread scoring (tighter spreads score higher)
•Execution Quality: Speed, slippage, requotes
•Commissions: Per-lot fees and their competitiveness
•Trading Flexibility: Scalping allowed, hedging permitted, EA support

Trust & Credibility (25%)

Track record and reputation

A broker's history and reputation matter. We assess:

•Years in Business: Longevity bonuses (2, 5, 10+ years)
•Complaint History: Penalties by severity and recency
•Active Alerts: Deductions for caution, warning, danger, or critical alerts
•Corporate Structure: Parent company stability, ownership transparency

Client Feedback (15%)

Real trader experiences and satisfaction

Trader reviews provide valuable real-world insights. We analyze:

•Overall Rating: Average star rating (1-5 stars converted to 0-100 scale)
•Withdrawal Rating: Weighted at 40% due to critical importance
•Review Volume: Bonuses for 10, 20, 50+ verified reviews
•Review Verification: Only approved, verified reviews count

Transparency (5%)

Information availability and disclosure

Transparent brokers provide clear, complete information. We evaluate:

•Corporate Information: Legal entity, registration, location disclosed
•Trading Conditions: Complete fee schedule, spread data published
•Account Types: Multiple account offerings with clear differences
•Website Quality: Professional, functional, informative

Final Score Calculation

The final Verotify Score is calculated as a weighted average of the five component scores:

Final Score =

(Regulation × 0.35) +

(Trading Conditions × 0.20) +

(Trust & Credibility × 0.25) +

(Client Feedback × 0.15) +

(Transparency × 0.05)

The result is rounded to the nearest integer, producing a final score between 0 and 100.

Score Interpretation

80-100

Excellent

Outstanding brokers with top-tier regulation, excellent trading conditions, and strong trader satisfaction. Highly recommended.

60-79

Good

Solid brokers with decent regulation and trading conditions. May have some minor drawbacks but generally reliable.

40-59

Fair

Brokers with notable concerns. May have weaker regulation, higher costs, or mixed trader feedback. Proceed with caution.

0-39

Poor

Brokers with significant issues. May lack proper regulation, have poor trading conditions, or negative trader experiences. Not recommended.

Score Breakdown