wikifx ranks on 37 quantitative dimensions, of which compliance with rules contributes 45%, frequency of client complaints constitutes 22%, and transaction charges (overnight spreads and interest) constitute 18%. Based on the 12,000 brokers graded in 2023 as a benchmark, of the platforms scoring 8 or higher (out of 10), 93% of them had at least two popular regulatory licenses (e.g., FCA and ASIC), but among the platforms scoring less than 5, 81% of them had regulatory vulnerabilities (e.g., offshore shell companies or expired licenses for failing to renew upon expiration). For example, an ECN broker rated 7.9 has a 0.2-point standard deviation for the EUR/USD spread (the industry standard is 0.5 points), and the user withdrawal delay percentage is just 1.2% (the industry standard is 6.8%), much better than similar platforms.
From a data gathering point of view, wikifx is API-connected to 28 top-tier global liquidity providers (such as LMAX and Currenex), handling over 150,000 quote data points per second and calculating parameters like the rate of slippage and spread fluctuation range over a rolling 90-day period. Statistics as of 2022 show that the median slippage of the top 10% platforms was 0.4 milliseconds (the average in the industry was 2.1 milliseconds), and the probability of quotations differing from the benchmark value by more than 0.5 points was less than 3%. Let’s consider Ruixun Bank as an example. Its wikifx slippage review score is 9.1 points, and the real slippage rate of a certain unregulated exchange equals 12%, so the value of potential loss of each trade rises to 2.3 times the standard deviation.
In user behavior analysis, wikifx gathers over 1.8 million comments and uses a sentiment analysis model to identify fraud signals. For instance, of the platforms having a rating less than 4, there exists a probability of occurrence for the high-frequency word “failed withdrawal” as 67% (the market average being 9%), and complaints taking more than 7 days to be resolved at a rate of 82%. In the PrimeFX fraud scandal revealed in 2021, wikifx lowered its risk rating from 5.8 to 3.2 six months in advance, mainly due to a 320% increase in user complaint levels on account freezes and a response time of over 48 hours to a regulatory question.
As far as the regulatory dynamic response mechanism is concerned, wikifx has a direct connection with 64 regulatory authorities’ databases around the world and a median lag of updates just 1.8 hours. When the UK FCA shut down 10 brokers in 2023, the platform reduced the score of the relevant platform by 7.5 to 4.3 in just 3 hours and marked it as having a “license restriction” warning. On the other hand, for those platforms behind the updating of regulations (say, a Seychelles-registered company), the probability of the users being unable to withdraw their money once they have deposited it rises by 41%. Moreover, the platform releases approximately 2,500 field investigation reports every year, which cover 85% of the TOP100 brokers. For example, IG Group’s verification in 2022 found that its real office scale coincided with the alleged data by 98%, while a platform scored 2.7 was found to have a fake warehouse as its office location.
In technical indicator verification, wikifx employed Monte Carlo simulation to try the stability of the platform. The top-performing 20% of the brokers had the highest drawdown rate of under 8% during extreme conditions in the markets (release of non-farm payroll numbers), whereas the weakest 20% of the platforms had a drawdown rate greater than 25%. Citing the “Crude Oil Treasure” incident in 2020, wikifx reduced the liquidity rankings of platforms that failed to have appropriate contingency plans against such oil price shocks, and the rankings of the concerned platforms dropped by more than 60%. Research shows that investors who trade using the top 50 wikifx brokers have an average rate of return per year that is 14.7% higher than the industry average and a complaint rate for fund security which is 63% lower. This multi-dimensional dynamic evaluation system has been the primary tool of the screening platform for over 9 million traders worldwide.