BV Evaluation Rules

Preface

To ensure the accuracy, objectivity and reliability of our assessment results as much as possible:

1. All the assessment data is derived from real trading orders by using real accounts.

2. A broker will be assessed three times in Singapore, Dubai and Frankfurt, respectively.

3. We assess brokers based on six dimensions: trading speed, stability, liquidity, spreads, slippage and swap rates. The total score is 100 points, with 20 for trading speed, 10 for stability, 10 for liquidity, 20  for spreads, 30 for slippage and 10 for swap rates.

In the future, we will expand our assessment to cover more dimensions, more brokers, and more regions. Watch this space!

Assessment Dimension 3 - Liquidity

Core assessment indicator: Average quoting frequency (per minute) for main trading instruments. Generally, the higher the numerical value, the better.

The quoting frequency is the most intuitive indicator reflecting a platform's liquidity. 

The level of liquidity will have a great impact on trading speed and slippage probability, which is directly related to the user's trading experience.

Liquidity usually decreases around the opening and closing of the market. The spreads of most brokers at this time can increase significantly (possibly increasing by more than 10 times in some cases), which may result in clients' take-profit/ stop-loss orders got triggered unexpectedly.

Assessment Dimension 4 - Slippage

Core assessment indicator: Average slippage of main trading instruments (when traders enter/exit positions and take profit/stop loss). Generally, the higher the numerical value, the better. (A value greater than zero means positive slippage, which is favorable to traders, while negative slippage is smaller than zero and unfavorable.)

Slippage occurs commonly, but a good enough broker will reduce the occurrence of slippage as much as possible by improving the trading environment, providing better liquidity and other methods. Therefore, the slippage situation is also an important indicator for judging a broker.

Many factors can affect slippage. Some brokers set the MT4/5 trading mode as "Instant Execution" instead of "Market Execution" to allow clients to control the range of slippage themselves. This may result in frequent failures when placing orders.

Assessment Dimension 5 - Spreads

Core assessment indicator: Average spreads of main trading instruments. Generally, the lower the numerical value, the better.

Spread is the main reflection of trading cost, and is an important basis for users to choose brokers. But a lower spread does not necessarily mean lower trading costs because trading costs also include fees, a lower spread does not necessarily mean lower trading costs.

It is important to understand that the spreads of most brokers can abnormally widen around the opening and closing of the market. Therefore, it may cost more to trade during these periods.

ECN or other low-spread accounts, in general, have very low spreads, but this does not mean they are good.

Assessment Dimension 6 - Swap Rates

Core assessment indicator: Average swap long/short for main trading instruments (i.e. the sum of the swap long and the swap short). Generally, the higher the numerical value, the better.

The level of swap rates has a big impact on long-term traders and hedging strategy traders, so it is an important criterion for traders to choose their brokers.