Broker Reviews – User Ratings & Reviews
What is the composition of our ratings?
We provide you broker reviews and valuations for our tested brokers. The exact composition can be found in the individual broker reviews. We look forward to your own reviews and comments!
We have divided our evaluation criteria into four categories. These are of course not an absolute & complete representation, however, we have decided on this because of the clarity. The categories are divided into the following points:
Trading costs are one of the main arguments for choosing a broker but should of course not be the only reason. We divide the trading costs into several aspects. These include: Spread (basic fee), swap (holding costs), commissions (fees) and also slippage. However, we have summarized slippage under Service & Order Fee, as it is also a quality feature of a broker how it is handled and moreover a feature of the financial markets.
Spreads occur with every broker, but often differ drastically. There are brokers who demand a spread of over 4 points for the DAX while a large majority is around ~1 point. The difference would be 400% and this of course has a drastic effect on the success rate of traders.
Swap occurs with most CFD products. Forex, commodities and normal spot markets have daily swap fees. However, these can be positive and negative. Here there are often drastic differences from broker to broker, because most traders only pay attention to the spread. The decisive factor here is mainly the holding costs, especially when a trade is held for a longer period of time. Excluded from the swap are CFD contracts based on futures. These have no swap fees, but a limited term! Depending on the trading style you should also keep an eye on the swap fees.
Commissions are primarily fees charged by DMA/STP broker models. In short, the broker merely acts as an intermediary and earns money not from the spread but from the commissions. Since most customers primarily have the standard spread account, this aspect plays a subordinate role.
Our broker reviews are of course also checked for service and order execution.
This includes support... What are the response times to e-mails? Is there a 24/7 or 24/5 live chat? What are the phone times? How about goodwill in the event of discrepancies and how quickly are payments and deposits processed by the broker.
The next step is to assess the quality of order execution. How often does slippage happen and is positive slippage passed on or only negative slippage? Are fixed & variable spreads offered? What about a guaranteed stop loss? There are a number of aspects here that we naturally cannot test completely. Here we are dependent on feedback from you traders.
The financial products available are not only decisive for banks and securities accounts. These also play a major role for CFD brokers. The offer usually differs and is therefore a decision criterion. Especially in the crypto currency offer there are still big differences today. While some CFD brokers already offer some crypto coin pairs for trading, other brokers do not offer them at all. Also with more exotic forex trading pairs or equities & ETF CFD's there are still strong differences. In principle, of course, it is desirable to have as large an offer as possible.
The user-friendliness of the broker's website, trading software and also the help provided, such as webinars or tutorials, are a selection criterion. CFD brokers mostly use the metatrader or ninjatrader, futures brokers prefer to use the TraderworkStation. Additional offers like mobile apps or a webtrader are plus points. Additional software offers more freedom for the trader, especially experienced traders profit from this.
What is DMA/STP?
The contractual partner (broker) forwards all positions of the customer directly and transparently to the stock exchanges or liquidity providers and earns primarily on the commissions. The spread here will usually be smaller than with normal account models, but the commissions usually make the position similarly expensive. The advantage for the customer is that the broker has no advantage of working against the trader through poorer prices or price manipulations (spikes or spread widening). The broker has an interest in the success of the trader, since he earns money through volume – i.e. trading. The broker earns a share of every lot that the customer receives, so a successful trader would be lucrative for the broker. A DMA/STP agency model without a dealing desk is important here. The pure agency model with 100% DMA/STP execution, in which the brokers merely act as intermediaries and forward all orders to the interbank and currency markets. The problem is that some brokers claim this but do not (e.g. FXCM USA, whose license has been revoked). Authentic post-trade transparency should therefore be available at all times. If a broker can provide these details to his traders, one can be sure that the ethical business principles are correct and the client’s interests are protected.