What we measure
Every license a broker claims is checked directly against the issuing regulator's own public register - active status, license number, and permitted activities - rather than trusted from the broker's own marketing.
Not all regulators are weighted the same
Regulators vary in enforcement strength and client-protection requirements (capital adequacy, segregated client funds, compensation schemes). Licenses from regulators with stronger, independently verifiable requirements score higher than licenses from weaker or less-enforced regimes.
Why regulation carries 25% weight
An unregulated or weakly-regulated broker is a risk no amount of low cost or good execution offsets - weighted equally with spreads as the two factors we treat as most consequential to a trader's actual outcome.
How this feeds the rank score
Brokers with stronger, independently verified regulatory coverage score higher on this factor, combined with the other 4 at their published weights for the overall rank.