Dukascopy explained by professional Forex trading experts the “ForexSQ” FX trading team
Dukascopy provides a single account type with leverage up to 1:100, tight variable spreads and a reasonable commission. Micro lots are available for trade and all transactions are executed automatically on its ECN, whatever their size.
Besides, PAMM services are also available with this broker. The Percent Allocation Management Module (PAMM) is a technical solution allowing Dukascopy’s clients to have their accounts managed by a trader appointed by them on the basis of a limited trading power of attorney. PAMM solution allows the trader on one trading platform to manage simultaneously unlimited number of managed accounts.
Founded in 2004, Dukascopy Bank is a Swiss online bank based in Geneva, Switzerland, providing online trading services (with focus on foreign exchange, bullion, CFD and binaries), banking and other financial services through proprietary technological solutions.
The broker has a EU subsidiary, as well as a Japan-based unit (as a result of acquisition of Alpary Japan in the beginning of 2015). In addition to its Geneva Headquarters, Dukascopy Bank has offices in Zürich, Riga, Kiev, Moscow, Kuala Lumpur and Hong Kong.
All Dukascopy customers take advantage of the Swiss Forex Marketplace (SWFX) ECN dealing model. The broker’s pricing model is transparent, and so are its operational metrics. To top this up, Dukascopy offers a historical data feed, and market depth monitor as well.
Security of Funds
Dukascopy is regulated by the Swiss Financial Market Supervisory Authority (FINMA) both as a bank and a securities dealer. So, this broker is rock solid in terms of safety and security.
Getting such a license is not an easy task, as applicants must comply with a set of draconian requirements, including a minimum capital requirement of CHF 20 million. Moreover, Swiss forex brokers are obliged to sign the Swiss Banks and Securities Dealers agreement, which protects all customer deposits of up to CHF 100,000.
The broker’s subsidiaries are also duly regulated: Ducascopy Europe AS is an EU licensed investment brokerage company based in Latvia, and is regulated by the local Financial and Capital Market Commission (FCMC); Dukascopy Japan holds Type-1 license by the Financial Services Agency of Japan (JFSA).
Besides, Dukascopy Bank exercises consolidated supervision from Switzerland over its subsidiaries, ensures adequate liquidity, risk diversification and capital adequacy at a Group level.
Minimum initial deposit
The initial deposit requirement of $5,000 is probably a tad off-putting to rookies looking to start with a smaller amount of money, however the broker’s educational and research section is outstanding and can probably make a pro trader out of a monkey. Calendars, charts, market news and research, signals, calculators and many other tools are at trader’s disposal.
Average Spreads & Commissions
The spreads offered by Dukascopy are variable and pretty tight, averaged 0.2 pips for the EUR/USD pair, but traders also need to pay a commission of $7 per lot round trip. Nonetheless, the cost of trading with this broker is around 0.9 pips per lot for this pair, which is really low and competitive pricing. Most brokers offer spreads within the range of 1.0 – 1.5 pips on EUR/USD.
In comparison, Swissquote, the only other regulated Swiss broker, provides variable spreads starting from 1.8 pips on EUR/USD (and charges no commission fees).
Besides, discounts on commission fees are available to clients with higher net deposits or equity in their accounts:
Dukascopy provides its clients with maximum leverage of 1:100, which is considered a low ratio for the market. If you need higher leverage levels, many forex brokers offer leverage equal to or exceeding 1:500. Keep in mind, however that higher leverage increases the risk associated with trading on margin. That is why Swissquote also offers leverage up to 1:100 and even advises inexperienced traders to use leverage lower than this.
Ducascopy offers its proprietary Forex trading platform JForex, which provides access to Swiss Forex Marketplace (SWFX). It is available as desktop, web and mobile versions.
JForex platform is designed for traders interested in automated trading and/or developing and testing trading strategies based on the JAVA programming language. Here are some of the tools and features the platform offers:
Dukascopy’s web-based JFrorex. Click to enlarge.
Unlike most brokers, Dukascopy does not support the popular MetaTrader 4 (MT4) platform. However, customers are able to use a third-party provider’s MT4 bridge.
Besides, this broker also offers the possibility of API integration for professional traders (who deposit a minimum of USD 100.000). The Dukascopy API is based on FIX4.4 protocol. The API is used to receive real-time data feed, submit orders, set / modify / cancel orders, and receive automated notifications of trading activities.
In addition, Dukascopy offers social trading functionality.
Methods of Payment
Clients of Dukascopy can make deposits to and withdrawals from their accounts via bank wire, debit cards (Maestro, Visa Electron), and credit cards (MasterCard, Visa). Unlike most brokers, Dukascopy does not support e-wallets, such as Skrill, Neteller and PayPal.