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Dukascopy

Dukascopy Review
Trader's rating 3.7
Editor's rating 3.9

Trading Accounts

  

Account type Minimum Initial deposit Minimum trade size Maximum leverage Average Spreads (and Commission)
Standard $1 000 0.01 1:100 0.2 pip + $3.5/lot*

 

*Commission is calculated per standard lot of 100 000 currency base units (per side). Commission discounts offered to clients with higher Equity or Net deposits (details provided below).

 

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. 

 

The Companies

 

Company  

Country 

Regulation

Dukascopy Bank SA

Switzerland

FINMA

Dukascopy Europe IBS AS

Latvia

FCMC

Dukascopy Japan K.K

Japan

JFSA

 

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.

 

Trading Conditions

 

Minimum initial deposit

The initial deposit requirement of $1,000 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:

  

Net Deposit/Equity Commission (per standard lot per side)
≥ $5 000 $3.3
≥ $10 000 $3.0
≥ $25 000 $2.5
 
≥ 10 000 000 $1

 

Maximum Leverage

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.

 

Trading Platforms

 

Ducascopy supports the ever-popular MetaTrader4 (MT4), and also offers its proprietary Forex trading platform JForex.

 

The MT4 hardly needs a presentation. This is the most popular trading software, highly praided by traders of all skill levels. The platform has great charting and is especially popular for its automated trading bots, called ExpertAdvisors.

 

JForex platform is designed for traders interested in automated trading and/or developing and testing trading strategies based on the JAVA programming language. It is available as desktop, web and mobile versions. Here are some of the tools and features the platform offers:

 

- 250 indicators and chart studies

- Calendar of economic events, news

- Automated trading on user's machine or Strategy Server

- Automated trading historical tester

- Renko, Range bars, Point&Figure and Line break charts

- Mql4 expert advisor converter to JAVA

 

Dukascopy’s web-based JFrorex. Click to enlarge.

 

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.

 

Conclusion

 

Dukascopy Bank is a Swiss forex broker offering a wide range of financial instruments for trade on it robust JForex platform. Holding an actual banking license, among others, it is secure and well-regulated, and offers excellent trading conditions: very tight spreads and fast ECN execution through the SWFX Swiss FX Marketplace technology. To sum up the above, here are the advantages and disadvantages with regards to this broker.

     

Pros  Cons
Very well-regulated Mediocre leverage levels
Tight spreads and low cost of trading High initial deposit required
ECN environment with deep liquidity  
Automated & Social trading available as well a MT4 bridge   

                         

Headquarters:  ICC, Route de Pré-Bois 20, 1215 Geneva 15 

Country: Switzerland 

 

Regulated by: FINMA (Swiss Financial Market Supervisory Authority)

 

Subsidiaries: Dukascopy Europe

 

XM

XM Review
Trader's rating 3.4
Editor's rating 4.7

Trading Accounts

 

Account type  Minimum deposit  Minimum trade size  Maximum leverage  Average Spreads
Micro  $5  0.01 1:500 1.7 pip on EUR/USD
Standard  $5 0.01 1:500 1.7 pip on EUR/USD
Zero  $100 0.01 1:500 0.1 pips on EUR/USD + $7 / lot (round trip) 

 

XM offers its clients three types to choose from: Micro, Standard and Zero. You may choose from commission-free trading (in Micro and Standard accounts) or tighter spreads, involving commission fees and higher initial deposit (Zero account). The broker offers high leverage levels and floating spreads. Beginners can sign up for Micro accounts with as little as $5, and micro lots are available for trade on all accounts.


What is more, swap-free (Islamic) accounts are available, designated for clients who are not willing to earn interest for religious reasons.


The Company. Security of Funds

 

Company Country Regulation
Trading Point of Financial Instruments Ltd. Cyprus  CySEC
Trading Point of Financial Instruments UK Limited UK FCA
Trading Point of Financial Instruments PTY Ltd. Australia ASIC

 

Based on the sunny island of Cyprus, XM offers great trading conditions for trading in a wide range of instruments, including currency trading, CFDs on commodities, indices, precious metals, energies and stocks on two trading platforms (MT4 and MT5). What is more, XM provides ultra-fast execution (99.35% of all trades executed in less than 1 second), as well as awesome bonuses & promotions.

 

XM is a brand name of Trading Point Holdings Ltd, which wholly owns Trading Point of Financial Instruments UK Ltd (XM UK), Trading Point of Financial Instruments Pty Ltd (XM Australia) and Trading Point of Financial Instruments Ltd (XM Cyprus).

  

FCA, CySEC and ASIC apply certain rules and requirements to regulated firms, which are not as stringent as those in the US, for instance, however they provide a good level of credibility. Besides, licensed brokers are required to keep customer funds in segregated accounts, separated from the company’s operating funds.

 

As a further guarantee to clients’ funds, all companies regulated in UK and Cyprus are covered by compensation schemes as additional guarantee to clients funds. All deposits with a UK regulated forex broker up to £50,000 per client are guaranteed by the Financial Services Compensation Scheme (FSCS) - UK’s statutory compensation scheme for clinets of authorised financial services companies. Similarly, Cypriot Investment Firms are members of the Investor Compensation Fund, which is able to pay compensation up to 20,000 EUR, If the company is in default.

 

Currently, however, Australian forex brokers are not covered by any compensation scheme.

 

Trading Conditions


Minimum Initial Deposit

In order to open an account with XM, traders have to invest just $5. Such low minimum initial amount is rather attractive, as typically brokers require $100 - $300 as a start.


Spreads & Commissions

This broker offers variable spreads. The typical ones on commission-free accounts amount to 1.7 pips on EUR/USD. According to us, the conditions on the Zero account are better: spreads averaged 0.1 pips on EUR/USD and commission $3.5 per standard lot traded (per side). So, basically trading costs on the Zero account amount to around 0.8 pips, commission included, which is a great offer. What is more, you can open a Zero account with just $100.


Leverage
XM offers flexible leverage between 1:1 to 1:500. Using leverage means that you can trade positions larger than the amount of money in your trading account. Leverage amount is expressed as a ratio, for instance 50:1, 100:1, or 500:1. Assuming that you have $1,000 in your trading account and you trade ticket sizes of 500,000 USD/JPY, your leverage will equate 500:1.


Trading Platforms

 

When trading with this broker, you will be offered both MetaQuuotes;s platforms - the Metatrader 4 (MT4) and MetaTrader 5 (MT5).

 

MT4 is an internationally acclaimed trading software, offering a full array of trading tools and features: more than 50 built-in technical indicators, advanced charting package, a wide range of Expert Advisors (EAs) and extensive back-testing options for them. Traders can download ready-made or create their own EAs and let the program do all the work, no human emotions involved. The MT4 with XM is availavle in all forms and shapes: desktop, web, and mobile.

What is more, XM provides MT4 MultiTerminal, which offers a practical and convenient way to manage multiple accounts simultaneously from a single interface (PAMM).

 

Recently MetaQuotes has been putting a stronger emphasis on the MT5: the hedging function was finally added to it and all versions of the platform have been ehanced. As a result, the number of brokers that support the platform has been on the increase. XM also followed suit and added it to its offerings. 


Besides, free Virtual Private Server (VPS) hosting is offered to both new and existing customers of XM who deposit a minimum of $5,000 and trade at least 5 round turn lots per month. VPS hosting allows the execution of orders 24 hours, 5 days a week.


Promotions

 - Free VPS for clients who maintain a balance (Equity-Credit) USD 5,000 or currency equivalent. No end date for this promotion;

 - $30 Non-Deposit Trading Bonus for new clients only. No end date for this promotion;

 - The two-tier deposit bonus offers 50% deposit bonus up to $500 and 20% deposit bonus up to $5,000. No end date for this promotion;

 - The XM Loyalty Program offers the clients XM Points (XMP) per lot traded. These XMP can be redeemed at any time for credit bonus which can be used for trading purposes only. No end date for this promotion.

 

*Clients registered under Trading Point of Financial Instruments Ltd are not eligible for bonuses. 

 


Deposit/Withdraw Methods


XM accepts the most commonly used Local Payment methods today including Credit/Debit Card, Neteller, Skrill, Bank Wire Transfer, etc. Their coverage is quite extensive and adds more flexibility on adding funds into the account


XM covers all deposit and withdrawal transfer fees for payments made via Neteller, Moneybookers and all major credit cards (including VISA, VISA Electron, MasterCard, Maestro and China UnionPay). Additionally, all deposits and withdrawals above 200 USD processed by wire transfer are also included in our zero fees policy.


Conclusion


XM is a EU award-winning broker that offers wide range of trading products and account types on two great platforms under competitive conditions. What is more, it provides Negative Balance Protection, as well as lucrative bonuses to its clients. To sum up the above, here are the advantages and drawbacks with regards to this broker:

 

Pros  Cons
Well-regulated (FCA, ASIC and CySEC licenses) No significant disadvantages
Negative Balance Protection  
Low trading costs on the Zero account  
MT4 and MT5 available  
Attractive Promotions  
Fast execution speed  

 

Why XM?

- Licensed in UK and Australia
- Tight Spreads from 1 Pip
- Leverage up to 888:1
- Deposit bonus up to 5000 USD
- 24 Hour Support
- No Requotes
- Personal Account Managers
- Automated Trading
- Loyalty Program
- Phone Trading
- Hedging Allowed
- Islamic Account

Registered with

- FSA, UK 
- BaFin, Germany 
- CNMV, Spain
- AFM, Netherlands
- FI, Sweden
- FIN, Finland
- PSZÁF, Hungary
- CONSOB, Italy
- ACP, France
- KNF, Poland

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