How FXCanary scores brokers
FXCanary is an independent forex-broker watchdog. Unlike closed "trust scores", our ratings are a transparent, weighted formula built from objective public data — and we take no payment from any broker we rate. This page explains exactly how the numbers are produced.
The Scam Risk Score
Every broker gets a Scam Risk Score from 0 to 100 (lower is safer). It is a weighted combination of seven factors, each scored 0–100 from public records, complaint data and real user reviews, then combined by the weights below.
| Factor | Weight | What it measures |
|---|---|---|
| Regulation & licensing | 35% | Whether the broker holds verifiable licences, and the tier of each regulator — Tier-1 authorities (FCA, ASIC, NFA, CySEC, etc.) enforce client-fund segregation and compensation schemes; offshore-only licensing offers little protection. |
| Company age & history | 15% | How long the entity has verifiably operated. Brand-new entities carry more uncertainty; long, continuous operation is a positive signal. |
| Clone / impersonation | 12% | Whether scam entities are cloning the broker's name and site — a signal of both risk to traders and the broker's brand exposure. |
| Withdrawal & complaint history | 12% | The volume of withdrawal-related complaints and exposure reports. Blocked or delayed withdrawals are the single clearest scam pattern in retail forex. |
| Offshore registration | 8% | Whether the operating entity is registered in a jurisdiction with weak or no meaningful oversight. |
| Transparency | 10% | How openly the broker discloses its company details, address, regulation and funding terms on its own site and in public records. |
| Real-user sentiment | 8% | The balance of positive vs negative experiences across independent reviews (Trustpilot, Forex Peace Army and aggregated industry data). |
The full per-factor breakdown is published on every broker's page — nothing is hidden behind a proprietary black box. We also publish a separate Exit Risk reading, which reflects recent negative momentum in fresh reviews.
Our data sources
- Regulatory registries — licences are cross-checked against the public registers of the relevant authorities.
- Trustpilot & Forex Peace Army — our primary sources of real, independent user reviews.
- Aggregated industry databases — used for corroboration of company details, licences and clone reports.
- The broker's own website — for the company's stated claims, which we always present separately from our independent assessment and label as unverified.
How we use AI — and where humans decide
Scores are computed by a fixed, deterministic formula from objective data — AI does not decide a broker's score. We use AI to help analyse the large volume of real user reviews (extracting recurring themes and sentiment) and to draft the written analysis, which is produced within an editorial framework and reviewed for accuracy. Where a specific detail is not disclosed in the data, our policy is to say so plainly rather than guess.
Review authenticity
We rely on real reviews from independent platforms, not a broker's own testimonials. Because automated matching can attach the wrong company's reviews to a broker, we run a dedicated audit that discards mismatched review sets rather than let them pollute a score.
Independence & how we're funded
We charge brokers nothing, ever. No broker can pay to raise its score, remove a warning, or influence its review — the rating you read is never for sale. FXCanary is funded by B2B data licensing and clearly-labelled display advertising, never by the brokers we monitor. This is the single most important difference between us and the "review" sites that quietly take money from the brokers they rank.
Corrections & disputes
Our analysis is based on public data and is offered as independent opinion. If a broker believes a specific fact is wrong or out of date, it may request a correction with evidence, and we will review and update where warranted. Scores update as new licences, reviews and complaint data arrive.
Limitations & disclaimer
A Scam Risk Score is a risk estimate derived from public data, not a definitive legal judgment that a broker is or is not a scam. FXCanary is not a regulator and does not provide financial or investment advice. Always verify a broker's licence directly with the regulator and test withdrawals with a small amount before committing capital. Trading forex and CFDs carries a high risk of losing money.
Methodology maintained by the FXCanary editorial team · last updated 2026-07-01. Questions? See About FXCanary.