Edward Culchenko
The value of a brand is one of the major factors that should be considered when estimating any company’s prospects. For example, Coca-Cola or Pepsi-Cola cost billions of dollars, so a small-scale beverage company has no chances to compete with such giants.
What are the difficulties of estimating Forex brands?
First of all, their stocks are not openly sold in stock markets and there is no transparent bookkeeping when it comes to Forex brokers or dealing centers. As a result, novice traders cannot tell a genuine “brilliant” from a fake one.
Sometimes successful traders have problems withdrawing their profits as their unreliable brokers refuse to pay. has already counted at least a dozen of such cases of non-payments: after making substantial profits some students of decided to withdraw the money but found themselves in trouble as their brokers had refused to pay. The value of a Forex broking company’s brand is a hidden sign that can tell a lot about how reliable the broker is:
· If the value of the brand is considerable or the broker is honest and doesn’t hunt for short-term super-income, thus annually increasing the value of its brand, you can earn and withdraw even millions of dollars (’s rating of FX brokers includes this factor as well).
· However, if a newly-founded broking company (see the 3rd league of Masterforex-V’s rating of FX brokers ) doesn’t have enough money to start a high-quality advertising campaign on the net, TV and other media, a successful trader should obviously forget about withdrawing substantial profits.
Therefore, an expensive Forex brand looks a lot more promising in terms of money withdrawal . Obviously, a wise broking company, which has spent billions of dollars on ads and promotion, would never destroy its image by refusing to pay its successful clients 10K or 100K.
Tips for traders and investors: how to measure the value of a Forex brand?
The Academy’s team responsible for making the rating of FX brokers decided to measure an FX company’s value by introducing the “PR” criterion. They added 2 factors:
1. Internet search request (Yandex and Google have approximately the same results). Obviously, if for a month there are 40K requests for one broker and only 40 for another broker, it is obvious that the former is more popular and expensive than the latter and consequently has more potential clients.
2. The PR trend (an anticipatory indicator): It implies the amount of times Yandex News or Google News mentioned the name of a certain broker over a month. The more money a company spends on PR campaigns, the more search requests (and consequently the more potential clients) it will get in the coming months.
The correlation of these 2 factors reveals the relative value of a certain Forex brand. More requests, more potential clients. More clients, bigger financial inflows.
The rating of Forex brokers in terms of internet search requests:
According to Eugene Olkhovsky, a Canadian expert form , we can conclude that such brands as Alpari, Forex Club, Nord FX, FOREX MMCIS group, OANDA and others are hundreds of times more expensive than Real Forex, ISIGroup, FX Financial Group or HY Markets,
What Forex brands grow and decline in value?
The chart above shows the scale of the PR campaigns conducted by various broking companies, which helps to determine the near-term prospects of a certain broker form the chart. The second chart (below) shows how many times Yandex and Google mentioned the brands during the last month:
What do brokers themselves think of the mentioned internet search criteria?
EXNESS: We don’t make use of aggressive advertising and PR campaigns. It is obvious for us and our clients that the genuine value of a Forex brand is reflected through the recognition of the company’s high-quality services rather than internet search results. For us it is all about our clients’ feedback.
Freshforex: Search results are not the major factor revealing a broker’s genuine value. It is a secondary indicator. These days we attract clients through many other sources apart from the Internet (search engines are not involved). When considering the value of a broker, one should pay attention to the quality of the company’s services and its clients’ feedback.
Forex Club: Without any doubt, more popular brands attract more clients. However, this is not the only major factor. A client’s security matters as well. The client should feel secure if the broking company wants to preserve its image. However, on the other hand, first lines in Google or Yandex help to attract more business partners.
Internet ratings and search results are significant indicators of publicity. But in order to get a more objective picture it is necessary to conduct more comprehensive research and analysis.
Market Leader and would appreciate if you could participate in a survey. Please, visit ’s forum for traders and investors and answer the following question:
Is it necessary to consider a broker’s image and value when opening a real-money trading account with it?
Edward Culchenko
