Forex Broker Awards: All You Need to Know

Forex broker awards do not always represent excellence. Some of them are dubious awards, though there are also awards that implement proper procedures.

Forex Broker Awards

Have you ever seen a forex broker flaunt a shelf full of honors like The Best ECN Forex Broker, Most Transparent Forex Broker, or Best Trading Execution? Many traders think that such achievements mean the broker provides high-quality trading services. However, the truth is that Forex broker awards do not always represent excellence.

Some (a minority) of these awards are truly granted by credible institutions. However, most of them are provided by publications or organizations that you weren't previously aware of. Many of them may not conduct proper evaluations in the awarding process but instead release awards for anyone who is willing to fork out some pretty pennies to gain instant respectability.

The article will bring to light all you need to know about forex broker awards, including why there are so many of them in the industry, the various types of popular awards, and how to distinguish between bonafide and dubious awards.

See Also:
Forex Broker Cheats and How to Anticipate Them

The Role of Awards in the Forex Industry

The best athletes should have received many awards. The more awards they have, the higher their accomplishments and the more popular they are.

Such a mindset is common among us. It also applies to the entertainment sector, the education system, and many others, including the forex industry. Unfortunately, the lack of unified regulation in the forex industry worldwide results in the inflated number of awards and lower award credibility.

On the one hand, awards are advantageous for forex brokers. On the other hand, there are people who are willing to provide them for underqualified entities in exchange for cash.

For forex brokers, awards fulfill multiple marketing needs:

To win accolades from the organizer's publicity.
To enrich their own advertising materials.
To obtain high-quality backlinks from news websites and other publications that publicize the award.
To attain a degree of credibility in the eyes of potential clients.

In this situation, everyone benefits except potential clients who are misled by the seemingly prestigious award announcement. This is why it is critical to double-check and triple-check the trustworthiness of forex broker awards.

See Also:
How to Recognize a Reliable Forex Broker

How to Distinguish Bonafide and Dubious Awards

Despite the unfortunate circumstances, not all forex broker awards are deceptive. There are organizers that treat awards as their main source of revenue with no other criteria except cash payments, but there are also award organizers that implement proper and standardized procedures before ascertaining their winners.

An in-depth report by The Guardian (2011) delved into the murky world of financial awards. They focused on the awards that are prevalent in the UK, but the result is actually quite representative of the worldwide financial industry.

The media found a very diverse set of entry requirements and evaluation standards among award organizers. There are awards that require participants to be nominated by an industry-wide vote. There are also awards that set up a panel of independent judges to evaluate participants.

At the same time, The Guardian also discovered several dubious practices by certain award organizers, including:

Awards without official entry requirements or impartial adjudication.
Organizers that receive payments to secure a "guaranteed win" and "take the hassle out of entering awards".
Organizers that demand large fees to enter the awards.
Awards ceremonies where invitations to accept the prizes must be purchased for hundreds of pounds.

The Guardian pointed out the lack of regulation for financial sector awards in the UK Advertising Codes. Companies may falsely influence the award organizers to favor them and then mention those awards in their ads, regardless of their credibility.

Following the report, we can derive several keys to distinguish between bonafide and dubious awards. Here they are:

The award should be held by authoritative organizers. The organizers themselves should have a solid reputation in the industry BEFORE giving awards to any entity.
The award organizers should be able to declare entry requirements and judging criteria in an open manner. Winners should be determined by a panel of experts, a survey of experienced traders, or other fair and transparent means.
The award must have a limited number of winners who have passed all the procedures without their credibility being called into question.

In addition, it would be infinitely more trustworthy if representatives from the government or market regulators were involved in the award.

See Also:
6 Best Forex Broker Regulators in the World

Various Types of Forex Broker Awards

Are you confused? No worries. We can sort them out into several categories to make it easier for you to assess any forex broker awards.

Earnforex has sorted out current forex broker awards into three categories:

The highest tier (trusted) awards are organized by renowned and highly reputable publications such as FXStreet. They apply transparent and reliable procedures. Additionally, they present awards to a few winners across a limited number of categories. Though few, their honors are significant.
Medium-tier (expos and conventions) such as Finance Magnates Summits and iFX Expo. The organizers themselves are reputable, and there are some rather tough qualifications for forex brokers who want to participate. However, such awards should be treated with caution as they tend to favor expo participants and have marketing as their main objective.
Lowest tier (dubious awards), including magazines and broker rating websites such as World Finance Magazine, International Business Magazine, Financial Derivative Magazine, and so on. They typically have minimum reputation other than the awards themselves. They do not disclose their judging criteria, and the jury is unknown. There is frequently only a simple survey to fill out in order to be nominated and win. Also, the organizers may hand out awards to hundreds of brokers every year.

Looking back at the current industry, there are too many forex broker awards in the third category. Most of them display their prized awards in the most prominent position on their respective homepage all year long, but they do not actually have an equally prestigious reputation to uphold them.

Notable Awards and Their Recipients

We evaluated dozens of forex broker Awards based on criteria such as award organizers' background and reputation, award entry requirements, and judging/voting procedures. As a result, here is our list of the most notable forex broker awards:

FXStreet Best Awards

Organizer: FXStreet
Type: Tier 1
Oustanding awardees: Forex.com (2017), FXTM (2016), FXCM (2015)
Background: FXStreet is a leading source for reliable news and real-time forex analysis. FXStreet Best Awards reward the best analysis, educational content, and contributors. Last held: 2018.

TradingView Broker Awards

Organizer: TradingView
Type: Tier 1
Outstanding awardees: Pepperstone (Broker of the Year 2022), OANDA (Most Popular Broker 2022), FXCM (Social Champion 2022)
Background: TradingView is an advanced charting and social trading platform. Every year, they award brokers based on user feedback and reviews, engagement, platform uptime, and more. Nonetheless, it's worth noting that TradingView Broker Awards participants are limited to brokers integrated with the platform.

Forexbrokers.com Annual Awards

Forexbrokerscom Annual Awards

Organizer: Forexbrokers.com
Type: Tier 1
Outstanding awardees: IC Markets (Algo Trading 2023, Metatrader 2023), IG Group (Top Overall 2023)
Background: Forexbrokers.com is a leading provider of broker reviews and comparisons. Rankings are provided along with full disclosure of research and testing methodologies.

Investopedia Best Online Broker Awards

Organizer: Investopedia
Type: Tier 1
Outstanding awardees: eToro (Best Broker for Cryptocurrency Trading 2023), TD Ameritrade (Best Broker for Beginners 2023), Interactive Brokers (Best Broker for Advanced Traders 2023)
Background: Investopedia is arguably the most cited financial information portal in the world, committed to ethical journalism and subject to Federal Trade Commission (FTC) guidelines. They belong to Dotdash, a US-based publishing company. However, participation in the Investopedia Best Online Broker Awards is limited to US-licenced entities.

Finance Magnates Summits (prev. Forex Magnates Summits)

Finance Magnates Summits

Organizer: Finance Magnates (prev. Forex Magnates)
Type: Tier 2
Outstanding awardees: IG Group (Best Multi-asset 2022), eToro (Best Investment/Trading App 2021), FXCM (Best Retail Broker Execution 2013)
Background: The Finance Magnates Summits are attended by hundreds of exhibitors every year. Awards are given to leading industry participants that have excelled across key segments through a transparent nomination and voting process by industry peers.

FXEmpire Awards

Organizer: FXEmpire
Type: Tier 2
Outstanding awardees: Plus500 (Top CFD Broker 2018), AvaTrade (Best Trading Experience 2018), FXCM (Best Customer Support 2018).
Background: FXEmpire is a leading global financial news portal founded in 2011. FXEmpire Awards, first initiated in 2014, determine winners through public voting with thousands of participants from around the world. Last held: 2018.

iFX Expo

Organizer: iFX Expo
Type: Tier 2
Outstanding awardees: Exness (Best Multi-asset Broker-MEA 2023), Vantage (Most Transparent Broker-MEA 2023), Tickmill (Best Forex Spreads 2023)
Background: iFX Expo is the largest financial business-to-business expo in the world. It is held in multiple cities across the world every year, such as Limassol, Hong Kong, and Dubai, with hundreds of exhibitors in each location. The latest awards are called UF Awards MEA 2023 from the iFX EXPO Dubai.

Awards and achievements are not the only things you can use to measure a broker's credibility. In fact, there are more essential aspects to determine that. Learn further in 5 Things to Rate in Broker's Quality.

5 Comments

Namira

Jul 30 2023

What is FXStreet, and how does it relate to the awards in the highest tier (trusted) category? I've heard that FXStreet is organized by renowned and highly reputable publications, and they have transparent and reliable procedures in place for their awards. And once again, the article also said the same things that I heard. So, I'm curious to know more about how FXStreet presents these awards, especially since they seem to be highly regarded despite honoring only a few winners across a limited number of categories. Can you shed some light on FXStreet and its prestigious awards?

Lenny

Aug 1 2023

Absolutely! FXStreet is a well-respected and highly regarded financial news and analysis website that provides valuable insights into the forex market and other financial markets. When it comes to awards, FXStreet is known for organizing the highest tier (trusted) awards. Unlike some other awards that may lack transparency, FXStreet ensures that their procedures are transparent and reliable.

What sets FXStreet apart is their approach to presenting awards. Instead of handing out awards to a large number of brokers in various categories, they take a more selective approach. FXStreet honors only a few winners across a limited number of categories. This exclusivity adds to the prestige and significance of the awards they bestow.

Due to their transparent procedures, reputable reputation, and selective recognition, the awards presented by FXStreet carry a lot of weight in the trading community. Brokers who receive awards from FXStreet can be seen as trustworthy and outstanding in their respective categories, making it a valuable reference point for traders and investors when considering their options.

Nick

Could you shed some light on the lowest tier of awards that certain brokers receive from magazines and broker rating websites like World Finance Magazine, International Business Magazine, and Financial Derivative Magazine? These awards are sometimes viewed as dubious because they often lack transparency in their judging criteria, and the jury behind the awards is unknown. Moreover, it has been observed that these organizers frequently hand out awards to hundreds of brokers each year with minimal reputation other than the awards themselves. Can you explain why these awards might not be considered as trustworthy or indicative of a broker's overall credibility and performance?

Mendy

Jul 31 2023

I agree with the article! Those awards from magazines and broker rating websites like World Finance Magazine, International Business Magazine, and Financial Derivative Magazine have been met with skepticism in the trading community. One of the main reasons for this skepticism is the lack of transparency surrounding the judging criteria and the mysterious jury behind the awards. Traders and investors often wonder how these brokers are selected as winners without any clarity on the evaluation process.

Moreover, what's puzzling is that these organizers tend to hand out awards to hundreds of brokers each year. This mass distribution dilutes the significance of the awards and makes it hard to distinguish between brokers with strong performances and those with questionable reputations. It's like tossing confetti everywhere, and the real gems might get lost in the shuffle.

The concern is that these awards could be more of a marketing tactic rather than a true reflection of a broker's credibility and performance. They might create an illusion of excellence without solid evidence to back it up. As savvy traders, we must dig deeper and consider other reliable factors when choosing a broker, like their regulation, customer support, and trading conditions.

Yodin

I actually disagree with the article. While it's true that some awards from magazines and broker rating websites may raise questions about their transparency and credibility, it's essential to remember that not all awards fall into the same category. Some reputable magazines and websites have stringent criteria and a robust judging process in place to ensure fairness and legitimacy in their awards.

These awards can serve as a useful starting point for traders and investors to identify brokers who have received recognition for their outstanding performance and services. It may not be the sole basis for choosing a broker, but it can be a valuable piece of information to consider in conjunction with other factors like regulation, customer reviews, and trading conditions.