The ultimate broker comparison - Matrix quality criteria

You alone have it in your hands!

The trading of leveraged products is very popular. However, it is often not easy to find a suitable provider. While you can rely on the pre-selection of online brokers when trading warrants, it is much more difficult to find the right provider from the large number of supposed specialist service providers when trading contracts for difference and currencies. Together with the intelligence portal Due Diligence Hub, we have developed a matrix that analyzes and evaluates industry representatives based on a quality criteria-based scoring model. In principle, this is a kind of checklist that addresses important questions relating to a business relationship.

The evaluation criteria are user-oriented. One key aspect is consumer protection. Ratings from review portals are less heavily weighted. Quality assurance is rarely carried out here to filter out fake content. There are also often conflicts of interest, as business models are financed by fees. The same applies to industry awards. Here, the impression is often given that there are independent jury criteria that apply equally to all evaluated companies.

Quality features/criteria
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My Broker Ranking
My Broker Ranking
1
The company has an individual protection of the customer's funds, which extends the statutory minimum protection.
My Broker Ranking
1
Regulated companies must be members of a compensation scheme through which compensation payments can be accessed in the event of insolvency. Investor compensation laws provide the legal framework, which sets a maximum limit established by law on dealing with the loss of claims by retail investors arising from transactions in securities. As a rule, only 90% of outstanding claims are covered, usually a maximum of EUR 20,000.
My Broker Ranking
1
Especially in the case of Cypriot companies, changes of ownership are frequently observed, which are not infrequently accompanied by multiple changes of the company name.
My Broker Ranking
1
When a company operating from abroad engages in advertising in Germany and thus addresses potential customers, contractual documents should be available in a language that is easy to understand. This is difficult with legal documents per se. Having to grasp the regulations defined by the company and underlying the business relationship in a foreign language can prove to be an expensive learning curve later on.
My Broker Ranking
1
The optimum state of a customer relationship is when the service user has no reason to complain about poor service. But when this happens, good advice often comes at a high price. If customer service does not speak your language, asserting rights quickly becomes a challenge.
My Broker Ranking
1
Should a complaint case ever escalate, do you know where the court for your concerns is located? You should also take into account that legal advice abroad can be associated with high costs.
My Broker Ranking
1
Do you know the auditing firm by name that is responsible for auditing business activities, financial reporting, and regulatory focus areas?
My Broker Ranking
1

Do you know how many people are employed by the company? Some of the companies active in the market get by with fewer than ten people, while others have several hundred employees. It gets exciting when the product marketing side talks about a six-figure number of active investors, while in the company ten people take care of customer inquiries from 24/5-hour trading. Which setup do you think is the more honest, the more robust? Tip: You can get some, possibly interesting, detailed information from the annual financial statements (commercial register) or Pillar 3 reports.

My Broker Ranking
1
Do you know from which companies the awards used for advertising originate? Take a closer look at the service providers to see if they are qualified to make an informed statement about their performance.
My Broker Ranking
1
Do you know how long the company has been in existence with which you are a client or still want to become one? Financial service providers with many years of market experience have been able to prove both their resilience and innovativeness many times over. For companies in the financial services sector, equity capitalisation is particularly important. The more reserves a company has at its disposal, the less susceptible it is to turbulence.
Total Competition Points
10
ayondo Lab Project

This tool is part of the ayondo Lab and is currently in the beta phase. The further development takes into account feedback from the community. Feel free to check back from time to time and, if you wish, you can send us your suggestions and wishes for improving the information content and usability. If you feel that certain facts play an important role in the selection of a financial service provider that you miss here in terms of content, we would be pleased if you let us know.

You have the possibility to make a preselection via the three options. The presentation of the facts is not always formulated as a question. A 'Yes' can have the meaning of 'applicable' or 'known', a 'No' can have the meaning of 'inapplicable' or 'unknown'.