Introduction
At Market Due Diligence, we use a structured and consistent framework to assess online investment platforms, including cryptocurrency exchanges, forex brokers, and digital trading services.
Our Risk Score system is designed to help investors quickly understand the level of risk associated with a platform based on transparency, regulatory status, and real user experiences.
This methodology ensures that every review follows a standardized, evidence-based approach.
What Is a Risk Score?
A Risk Score is a percentage-based rating (0–100%) that reflects the overall level of concern associated with a platform.
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Higher scores = Higher risk
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Lower scores = Lower risk
This score is based on multiple factors that commonly indicate fraudulent or suspicious activity.
Our Risk Scoring Framework
We evaluate each platform using five core factors:
1. Licensing & Regulation (25%)
We verify whether a platform is regulated by recognized authorities such as:
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Financial Conduct Authority- Financial Conduct Authority
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U.S. Securities and Exchange Commission- U.S. Securities and Exchange Commission
Scoring considerations:
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Fully licensed and verifiable → Lower risk
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Unverified or unclear claims → Medium risk
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No licensing → High risk
2. Business Transparency (20%)
We assess how open the platform is about its operations.
We check:
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Company ownership and registration
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Physical address and contact details
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Terms and conditions clarity
Red flags:
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Anonymous teams
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Missing company details
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Vague or misleading information
3. User Feedback & Complaints (20%)
We analyze publicly available feedback from users.
Indicators include:
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Reports of withdrawal issues
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Account restrictions or sudden closures
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Patterns of unresolved complaints
- Reports and scores on Trustpilot.com and Scamadviser.com
Consistent negative experiences significantly increase risk scores.
4. Withdrawal Risk (20%)
One of the most critical indicators.
We evaluate:
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Ability to withdraw funds
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Delays or blocked transactions
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Requests for additional deposits to unlock withdrawals
Platforms that restrict withdrawals are considered high risk.
5. Public Warnings & Alerts (15%)
We check for official warnings or enforcement actions.
Sources include:
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Regulatory notices
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Investor alerts
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Public enforcement records
Any confirmed warning significantly increases the overall score.
Risk Score Categories
To simplify interpretation, scores are grouped into categories:
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0% – 39% → Lower Risk
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40% – 59% → Moderate Risk
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60% – 79% → Elevated Risk
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80% – 100% → High Risk
These categories help investors quickly assess potential danger levels.
How to Use the Risk Score
The Risk Score should be used as a guidance tool, not a guarantee.
Investors are encouraged to:
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Conduct independent research
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Review platform details carefully
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Avoid making decisions based solely on one metric
For a deeper evaluation process, see:
→ Evaluate Online Investment Platforms – Step-by-Step Guide
Important Disclaimer
Our Risk Scores are based on publicly available information, independent research, and observed patterns within the online investment space.
They are intended for educational and informational purposes only and do not constitute financial or legal advice.
Strengthening Your Investment Decisions
To further reduce risk, explore:
Using these resources together provides a more complete understanding of platform behavior and potential risks.
Conclusion
Our Risk Score Methodology provides a clear, structured way to evaluate online investment platforms.
By combining regulatory checks, transparency analysis, user feedback, and warning signals, we help investors make more informed decisions and reduce exposure to potential fraud.
Stay informed. Evaluate carefully. Invest responsibly.