Dukascopy Review

May 26, 2020 05:49 AM ET
Dukascopy Review

Review Summary 

Dukascopy Bank is both a licensed bank as well as an online broker, providing over 600 trading instruments to users through the JForex as well as MT4 trading platforms. They provide sophisticated trading platforms and access to trading forex, stocks, indices, ETFs, options, Bonds, commodities and even cryptocurrencies. 

 

Dukascopy

RATING

7.5

YEAR FOUNDED

2004

LOCATION

Switzerland

REGULATION

JFSA(Japan),  FINMA (Switzerland), ...

US AVAILABLE

No

TRADING INSTRUMENTS

Currencies, Commodities, Cryptocurrencies, Shares, Stocks, Indices, Energies, Metals, Options, ETFs, Bonds, CFDs 

TRADING PLATFORMS

JForex, MetaTrader 4 , Web, Mobile

MINIMUM DEPOSIT

$100

DEPOSIT METHODS

Wire Transfer, Credit and Debit Cards, Bitcoin, Skrill, Neteller, Bank Guarantees

Base currencies

24

Inactivity fee

Yes

Withdrawal fee amount

$0

Max. Leverage

Up to 1:200

Min. Spread

0.1 pips

Currency pairs

60

Demo account

Yes

Social / Copy trading

No

 

Dukascopy Pros and Cons

Pros

Cons

  • Regulated
  • US clients not allowed
  • Multiple Trading Tools Available
  • High commission rates
  • Expert news and analysis
  • Restricted Leverage
  • Trading platforms are flexible
  • Does not support MetaTrader 5 
  • PAMM accounts and multiple currency Accounts available
  • Demo account is only for 14 Days

 

In-depth Dukascopy Review

As mentioned before, Dukascopy was founded in 2004 as an online Swiss bank and CFD/forex broker. It is headquartered in Geneva Switzerland, with other offices located in Tokyo, Moscow, Kiev, Riga and Hongkong. Dukascopy offers instruments across categories such as stocks, indices, forex, ETFs, options, bonds, commodities and cryptocurrencies. It promises DMA or Direct market access, along with instant executions and low spreads. The broker has stated on its website that it does not in any way manipulate trade executions or prices. ECN liquidity is offered to client orders through the Dukascopy bank. It is connected to other world banks, where large orders are hedged instantly within the network, allowing millions to be traded in a matter of seconds. With a useful collection of trading tools, daily analysis and training resources Dukascopy has already won about 21 accolades because of its ECN trading services and brokerage operations. 

  • Regulations: Dukascopy has several regulations in place. In Switzerland, Dukascopy is regulated by the Swiss Financial Market Supervisory Authority or FINMA and licensed as a broker and a banker. The Japanese branch of Dukascopy is regulated by the JFSA(Japanese Financial Services Agency). Additionally Dukascopy is also a member of the International Swaps and Directives Association or ISDA. This organisation promotes integrity and high standards in the derivatives market. Alternatively, it is also a part of the Swiss Bankers association, adding to the broker’s credibility. 

Account Types and Opening 

There are three main account types available at Dukascopy. These are explained in brief below. 

  • Binary Options Trading Account: The Binary Options trading account is exclusively meant for digital options traders.  Users aren’t charged any commissions when using this account. 

  • Forex ECN Account: The Forex ECN account is meant to be used on the JForex trading platform. The minimum opening balance for this type of account is $100 for Dukascopy Europe Clients and $1000 for Dukascopy Bank SA clients. The maximum Allowed leverage is 1:200, with spreads starting from 0.1 pips. Spreads are variable and users have the options of choosing any one of 24 currencies in which they can open the account. Commissions tend to vary according to the trading platform used, the trader’s trading volume and the type of assets traded. 

  • Forex MT4 Account: This account works only with the highly efficient MetaTrader 4 platform, and can be used for trading forex and CFDs. Options for base currencies include USD, GBP, EUR, CHF and PLN. The maximum leverage allowed is 1:100. MT4 also charges an additional commission  of $1 per lot for using the platform.

How to open a live account at Dukascopy?

Opening a live account is very simple as users have to follow some simple steps to complete it.

These steps are mentioned in brief below. 

  • When opening an account, users have to carefully fill in the electronic registration form 

  • Users will receive the Dukascopy account opening documentation which has to be printed out after filling out the electronic registration form. 

  • Users are requested to carefully read and then sign on the Dukascopy account opening documentation. They have to sign and enter the place of registration and date of signature. 

  • Before sending, users should always double check their documents. 

There are some special criteria when uploading documents to open an individual account or a corporate account. 

For legal entity (corporate account)

  • A copy of a utility bill: It should not be more than three months old to be used for verification. It can be any bill, such as electricity, gas and phone bills. 

  • Original certified copy of a valid ID card or passport:  It should contain a clearly visible photo and signature of the account holder. Certification in some countries are required to be performed by a public notary or public entities such as the ministry of justice. 

  • Corporate Documentation: Several pieces of documentation are required, such as an extract from companies register, a certificate of incorporation, memorandum and articles of association, a corporate power of attorney and evidence for the nomination of the first director and for further directors. 

  • Corporate Resolution: This piece of document authorises the opening of an account for forex trading. 

For Individual Account

  • A business Card: if possible or available

  • An original certified copy of a valid ID card or passport: This should contain a clearly visible signature, photo of the account holder,  and all authorised signatories. 

  • A copy of a utility bill: This should not be older than three months for verification of the addresses.

Deposits and Withdrawals

Dukascopy provides numerous methods for both deposits and withdrawals, in order to cater to all the requirements of different types of customers. 

  • Credit/Debit Cards: Deposits and withdrawals can be done by using almost all major credit and debit cards. Deposits via cards are charged with a 2% fee, while a €1.5 +2.5% fee is charged for withdrawals. However, fees are not charged for both deposits and withdrawals when using Dukascopy’s Bank cards. 

  • E-Wallets: Skrill and Neteller are the only online payment processors allowed by Dukascopy. Deposits and withdrawals made via Skrill are charged at 2.5%. For Neteller, deposits and withdrawals  which are of or under $40 have a  €1 fee, while amounts over $40 are charged at 2.5%.

  • Bank Wire Transfers:  Transfers between Dukascopy accounts via bank wire transfers are free of charge. Deposits made using bank transfer to trading accounts also do not have any fees. However, there is a $50 withdrawal fee for international withdrawals. 

  • Bank Guarantees: Users Depositing funds from $100,000 can use bank guarantees to do the same . 

  • Bitcoin: Bitcoin, the most famous and largest cryptocurrency can be used for both deposits and withdrawals on Dukascopy. The USD is the base currency. 

Commissions and Fees

Dukascopy charges no performance fees or management fees. A Client’s account is only subjected to volume commissions and overnight fees that are charged for the automated execution of the trades. The volume commission rate is 5 USD per 1 million USD  of traded volume. It is applicable on all currency pairs. The volume commission rates for CFDs on bonds, Commodities, cryptocurrencies, and indexes as well as for precious metals is 1.5 times higher than the basic volume commission rate. This makes it around $30 per $1 million of traded volume. 

  • Volume Commission Rate: Dukascopy charges a volume commission fee in the trader’s primary currency for each opening and closing trade. The rate is expressed in USD per 1 million USD traded. 

 

For Self Traders

Dukascopy Trading Commissions

  • Trading Commissions for Trading on the MetaTrader 4 Platform: Dukascopy charges a $1 per 1 MT4 lot fee for trading on the MetaTrader 4 platform, in addition to the standard fees.
    Trading commissions for the following single stock CFDs and ETF CFDs are given in the table below. 

Market

Volume commission

Min. commission

Austria

EUR 0.10% of trade value

EUR 8.00

Belgium

EUR 0.10% of trade value

EUR 8.00

Denmark

DKK 0.10% of trade value

DKK 60.00

Finland

EUR 0.10% of trade value

EUR 8.00

France

EUR 0.10% of trade value

EUR 8.00

Germany

EUR 0.10% of trade value

EUR 8.00

Netherlands

EUR 0.10% of trade value

EUR 8.00

Norway

NOK 0.10% of trade value

NOK 80.00

Portugal

EUR 0.10% of trade value

EUR 8.00

Spain

EUR 0.10% of trade value

EUR 8.00

Sweden

SEK 0.10% of trade value

SEK 80.00

Switzerland

CHF 0.10% of trade value

CHF 8.00

UK

GBP 0.10% of trade value

GBP 7.00

US

USD 0.02 per share

USD 10.00

It should be noted that Dukascopy has the right to change the Basic Volume Commissions amount at any time according to their own discretion. It can change between 0 USD and 25 USD.

  • Rollover Rates for Overnight Policy: Dukascopy applies different rollover rates, ensuring that a client’s overnight conditions are good by allowing higher trading turnover. The Overnight policy is aimed at providing highly competitive rollover conditions to Dukascopy users. Dukascopy's rollover policy is dependent on the trading activity level of the user. The Rollover policy of the different trading activity levels are mentioned below. 

    • Premium Policy: >90% Trading Activity

    • Advanced Policy: >20% Trading Activity

    • Regular Policy: <20% Trading Activity 

  • Fees for Binary Options: All clients are required to pay a premium which corresponds to the contract size in order to enter into binary option contracts. This premium is automatically debited from the client account by the broker before any option contract is opened. If the client’s account has insufficient funds, the broker can adjust the contract size or can reject the client order. 

  • Currency Exchange Rate: Dukascopy users require currency conversions for on-line money exchange, withdrawals, deposits, transfers(internal and external), fees, compensations and adjustments.  The currency conversion is executed at Dukascopy Bank SA’s current spot rate, adjusted by a fee as given below. 

 

      Amount to converted(In base currency )

Fee

< 10'000

1.00%

≥ 10'000

0.75%

≥ 50'000

0.50%

≥ 100'000

0.20%

≥ 500'000

0.10%

≥ 1'000'000

0.05%

 

  • Fees for Bank Guarantees: The fees for Bank Guarantees is 1.25% per year and maybe issued only in relation with a Standard Current Account. 

  • Fees for Credit Cards: Credit Cards require a bank guarantee to be issued by Dukascopy SA in favour of the credit card issuer. The fee depends on the type of card being used. 

  • Dormant Account Fees: CHF 500

  • SafeKeeping Fees: This fee is only applicable on Bitcoin. It is charged automatically in equal amounts of 1% of each Bitcoin deposit placed. The fees are charged on a weekly basis starting from the second week. 

  • Fees for DukasCoin: The various fees, commissions and transaction limits applied to services related to DukasCoin are mentioned in a simple table below. 

Fees for DukasCoin

 

Trading Instruments and Markets

When it comes to available trading instruments, Dukascopy offers over 600 on its platform. Its offering consists of currency pairs, indices, commodities, bonds, ETFs, stock CFDs and Cryptocurrencies. 

  • Currency Pairs: 60

  • Indices: 19

  • Commodities: 11

  • Bonds: 3

  • Stock CFDs: 520+

  • ETFs: 43

  • Cryptocurrencies: 2 

Trading Platforms and Tools

Dukascopy offers multiple trading platforms for both desktops as well as mobile devices, along with some useful tools. The Full list is explained in brief below. 

  • JForex Trading Platform:  JForex is the advanced trading platform created by Dukascopy, offering several tools for trader’s analysis. The platform offers clients access to the Swiss Forex Marketplace or SWFX. Since it is developed using the JAVA programming language, the platform is available for Windows, MAC and Linux computers. Some of the standout features of this platform include the following

    • Provides Economic Calendar 

    • Provides over 25 analytical tools and 65 technical indicators 

    • Automated Trading Support available 

    • Supports 12 languages

    • Includes Account management options such as account funding

    • News and Calculators available on the platform

J Forex also provides a web version of the platform. One of the major advantages of the web version is that it works across all operating systems and requires no additional downloads. It works on all modern browsers including Chrome, Safari and Opera. However, it does not provide the automated trading and net position functions. 

 

Dukascopy JForex Trading Platform

  • MetaTrader 4: MetaTrader 4 is arguably one of the most popular platforms used by brokers and traders alike, offering a simplistic yet useful way of trading. Dukascopy MT4 is available on mobile devices as well as for Windows PCs.

Some useful features  of this platform are highlighted below. 

    • Provides customisable market watch window, charts, interface and templates

    • Provides 30 inbuilt technical indicators. These indicators can be extended through plugin apps

    • Clients can automate their strategies using EAs

    • Provides live quotes on market watch and charts. Users can conduct technical analysis using multiple chart types. They are provided with up to 9 timeframes

    • Supports multiple order types

    • Alert notifications are provided via SMS, email and platform

    • Users can access MetaEditor,  which allow users to develop EAs, scripts and indicators in the MQL programming language 

Dukascopy MetaTrader 4

Trading Tools

Dukascopy also provides a selection of trading tools which offer additional functions. 

  • JForex API: This API is designed for developing software applications for the JForex platform. 

  • Fundamental Analysis: Dukascopy provides traders with trading information based on all the major economic releases and financial news. 

  • Technical Analysis: Technical analysis is prepared daily on different assets, using the price action of the selected instrument for predicting the next price movement. They can also be used to analyse the charts of the instruments. 

  • Dukascopy LP PAMM Accounts: LP PAMM Accounts are managed by Dukascopy bank, requiring a minimum investment capital of $1000. Dukascopy does not charge any management or performance fee. The investor funds earn from the spread because it acts as liquidity providers on the Swiss Forex Marketplace. 

  • PAMM Account: PAMM Accounts are accounts managed by other traders on the user’s behalf. A trading manager trades the account on the user’s behalf. They are provided with all the necessary technological tools to trade properly. 

  • Trading Ideas: This section provides users with ideas on which instruments to look out for. They base these ideas on the history, technical analysis and other relevant information. 

  • Dukascopy TV: Dukascopy TV provides automatic, high quality updates which cover a range of topics. Users can install it as a widget on any blog or website. 

  • SWFX Sentiment index: The SWFX sentiment index shows the ratio of long and short positions that traders have opened. It represents all the most popular assets and is often used as part of a contrarian trading strategy.

  • FX Market Signals: Dukascopy provides their users with FX Market Signals which are frequently updated on selected currency pairs. They are mainly based on support and resistance levels, intraday level, figure level and sharp moves. 

User Experience

  • Mobile Trading: Apart from the MetaTrader 4 mobile platform, users can also use the JForex Mobile Trader app for trading on the go. The JForex trader is available for both Android and iOS devices (iOS 7.0 or later). It provides identical features as available in the desktop version. It allows users to monitor the price of all assets, during which they can close or modify trade positions. It also allows them to conduct fundamental and technical analysis. One of the important features of this app are provided below. 

    • Provides live connection to currency quotes, servers and charts

    • Provides Important forex market news which can be important for conducting fundamental analysis. 

    • Provides risk management and order management

    • Provides Push notifications

Research

  • Economic Calendar: Dukascopy provides a calendar that provides information on economic events that have impacted the world market. Clients are allowed to filter news from the economic calendar by country, impact and currency. 

Education

  • Demo Account: Dukascopy provides a demo account with a virtual balance of up to $1 million. The Demo account is available for all platforms and can provide beginners with a useful tool for experiencing real-time trading activity without the risk of losing any real money. Experienced traders can also use demo accounts for testing out new strategies on the platform. Unfortunately, the demo account provided by Dukascopy is limited to 14 days. 

  • Educational Resources: Dukascopy provides a separate wiki section which contains all the necessary tools and tutorial videos required by new and intermediate traders. The training section offers multiple insights on forex. CFD trading, development of platform tools as well as managed accounts. 

  • Webinars: Dukascopy has an official YouTube channel where they upload webinars every weekday. Topics normally focus on expected price action and daily market movers. 

Customer Service

Dukascopy offers multilingual customer support to cater to every type of trader on its platform. The tea can be reached via email, web chat and telephone. There are also several contact forms including a “call back “ request, a “send us a message” form and a ”Report and Issue” form. There is also a support form where users can interact with each other and exchange information on trading strategies, automated trading resources and others. 

Safety and Security

Apart from meeting the regulatory compliance enforced by several international  regulatory bodies, Dukascopy also takes measures to protect its investor’s funds. 

  • Dukascopy protects investor’s deposits by Esisuisse, which is a deposit insurance scheme for Swiss Banks. Under this program, the funds of  eligible clients are insured up to CHF 100,000 if the bank becomes insolvent. 

  • Dukascopy is also a member of the ISDA or International Swaps and Derivatives Association. 

  • Dukascopy’s financial records are audited by the reputed KPMG law firm which ensures that the Bank as well as the investor’s funds are in safe hands. 

Conclusion

Dukascopy provides a powerful brokerage service which is both regulated and reliable. The award winning JForex platform provides the necessary tools for executing trades. The selection of trading instruments offered by Dukascopy is also impressive. However,  some of the drawbacks of this platform include the limited number of online payment options available, as well as the demo account which can only be used for 14 days. Additionally, the fixed leverage rates can be an impediment to some of the user’s needs, while withdrawal fees are considerably high as compared to others.


Best Forex Robots