Review Methodology & Editorial Scoring Model

At Binary Options Singapore, we believe Singapore retail market participants deserve complete transparency regarding how platforms are evaluated. This page outlines our end-to-end evaluation methodology, the sources we consult, our distinction between desk research and live testing, and the mathematical weighting behind our editorial review scores.

1. Nature of Our Research: Desk Research & Documentation Audit

In financial media, review websites frequently manufacture claims of “live trading tests” or “depositing $10,000 of our own funds” without documentary proof. We reject this misleading practice:

Our reviews are grounded primarily in rigorous desk research and documentation audits. We do not claim unverified retail deposit execution speeds unless verifiable telemetry exists.

2. Entity Identification & Corporate Structure

Brokers often operate multiple international subsidiaries under a single brand name. When a Singapore resident opens an account, they may be contracted to an entirely different legal entity than a European or UK customer:

• Contracting Entity Identification: We identify the exact operating company named in the client terms for Singapore residents (e.g., St. Vincent & the Grenadines, Seychelles, Mauritius, Marshall Islands, or Cyprus).
• Corporate Registration vs. Financial Supervision: We verify whether a platform is merely registered as an international business company (IBC) or possesses a genuine financial services license. An offshore commercial registration is never reported as financial supervision.

3. Regulatory Audit & MAS Status Verification

Regulatory supervision is the primary determinant of trader protection. We verify each entity through official public government databases:

• MAS Financial Institutions Directory: We verify whether the broker holds a Capital Markets Services (CMS) license issued by the Monetary Authority of Singapore (MAS) under the Securities and Futures Act (SFA). Only explicitly confirmed entities receive the “MAS Licensed” classification.
• MAS Investor Alert List (IAL): We cross-reference every brand against the MAS IAL. Any platform listed on the IAL is prominently flagged with an alert warning local investors that the entity is not licensed or regulated in Singapore.
• Tier-1 & Tier-2 Overseas Regulators: We verify overseas licenses directly on official registers: the UK Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), and Cyprus Securities and Exchange Commission (CySEC).

4. Pricing Models, Spreads & Fee Verification

We systematically dissect fee schedules across standard and VIP tiers:

• Spread Pricing Models: We distinguish between commission-free STP accounts (which build markup into wider spreads) and ECN/Raw accounts (which offer near-zero spreads plus a per-lot round-turn commission).
• Overnight Financing (Swaps): We audit published swap schedules, particularly on major pairs (EUR/USD, USD/SGD) and commodities (Gold - XAU/USD).
• Non-Trading Fees: Inactivity penalties, withdrawal transaction charges, currency conversion markups, and account maintenance fees are identified and cataloged.

5. Singapore Banking Channels & Deposit Feasibility

A broker's utility to a Singapore trader depends on whether local funding and withdrawal channels function smoothly:

• FAST Local Bank Support: We identify whether platforms support direct Singapore Dollar (SGD) clearing via local bank transfer rails (DBS, OCBC, UOB) to minimize cross-border wire friction.
• Multi-Currency Wallets: We document compatibility with global payment platforms like Wise (TransferWise), Rise, and Deel.
• Cryptocurrency Settlement: For offshore platforms where domestic card processing may be restricted, we audit supported blockchain rails (USDT TRC-20, ERC-20, BTC) and withdrawal processing turnaround times.

6. Prop Firm Evaluation Rules & Drawdown Methodology

Proprietary trading evaluation firms operate under different parameters than regulated brokers. When auditing prop firms, we evaluate:

• Drawdown Calculation Mechanics: We determine whether daily drawdown is calculated on Balance (static at the start of the trading day) or Equity (trailing open profits). Balance-based drawdown offers significantly greater trader protection.
• Profit Split & Scaling Structure: We verify base profit splits (typically 80% to 90%), criteria for scaling to larger simulated allocations, and maximum allocation ceilings.
• Trading Rule Restrictions: We examine rules concerning high-impact news trading, weekend position holding, automated Expert Advisors (EAs), and minimum trading day requirements.

7. The 7-Dimension Editorial Scoring Model

To avoid arbitrary star ratings, all review scores on Binary Options Singapore (ranging from 1.0 to 10.0) are calculated using an explicit, weighted 7-dimension scoring framework:

*Note on Schema: In accordance with Google Search Guidelines, our review scores reflect editorial benchmark ratings rather than aggregate user-submitted reviews. We do not manufacture fake aggregateRating schema.

8. Affiliate Independence & Commercial Policy

Commercial relationships never influence our editorial ratings or risk warnings:

• We refuse paid placement, sponsored reviews, or commercial requests to delete negative findings.
• Affiliate commission rates or earnings per click (EPC) are strictly excluded from our scoring model.
• Unregulated platforms that pose capital loss risks to Singapore traders are clearly flagged regardless of commercial arrangements.

9. Freshness Architecture & Corrections Protocol

Financial platform data evolves quickly. We maintain accuracy through:

• Factual Verification Timestamps: Reviews specify when key parameters (minimum deposit, spread models, challenge rules) were last verified against primary documentation.
• 48-Hour Factual Corrections: If you identify a factual error, outdated fee, or incorrect platform specification, contact our research desk via our About Page. Verified factual updates are published within 48 hours.