Dukascopy Forex Trading Review 2012 - Ratings, Likes, Dislikes, Comparison, Demo, Open Account
Find latest review of Swiss Forex broker - Dukascopy Bank SA. Read their advantages/ disadvantages, compare it with others or share your experience.
Dukascopy Forex Broker Review
We believe Dukascopy is a professional Forex broker, recommended for active private and institutional traders, who are familiar with basics and are ready for advanced trading technologies.
Very Positive - Trading technology, ECN access, raw spreads and low commissions are something you should be very happy about when trading with Dukascopy.
Could do Better - Newbie's to Forex trading will miss simplicity, more educational materials and higher level of support.
Dukascopy is an exclusive Swiss Forex ECN broker which is mostly recommended for institutional clients, banks, hedge funds and other professionals, also active private traders. This Swiss Forex broker allows you to trade Forex and precious metals bullions through the same platform. Among most important features one could mention high security of funds, high trading liquidity provided to traders (between 100 and 200 million on major currency pairs), instant executions, no manipulations with price and executions, each client is provided same prices and liquidity, they provide advanced and stable trading technologies, support is there for you 24 hours a day, 6 days a week, they provide clients access to fresh news and analysis.
There are two most important principals Dukascopy is following since. First, they aim to provide equal trading rights to all clients when it comes to providing and consuming liquidity on the market, and second, they provide transparent trading environment (single data feed with same prices and liquidity for all clients).
It is the business model and technology that gives Dukascopy a unique position by combining liquidity of clients, biggest marketplaces and a number of Banks. Result of this module is huge trading capability with a single click (200 million EUR/USD) and effective spreads of 4-5 pips. When trading smaller amounts, spreads on majors can go as low as 0-1 pips.
Fees & Commissions
First of all it has to be said that Dukascopy does not markup on raw spreads. They charge per trade commission, which depends on net deposit, equity, and traded volume. Te highest commission starts at $4.8 for account under $5,000 and $100,000 volume trade (one way, both ways $9.6) and can decrease significantly if your net deposit, equity or trading volume increases. For standard accounts were $50,000 is required, the trade commission is only $1.8 one way, and the lowest you can get is $0.5 per trade for over $10,000,000 accounts. While there is a minimum amount required to open a live account, you won't face any maintenance fees afterwards.
Maximum leverage is 1:100 during the trading hours and 1:30 over the weekend.
Among most welcomed account features is the possibility of virtual trading via free demo account, which can help you test your trading strategy before trading real money. You can also join their online trader community or gain some extra knowledge in their investment education center.
If you are looking for prize contests, DS is the place to be again. They provide several contests: trader contest (most popular, paper trading, monthly prize fund for all the winners of Trader Contest is $15,000), strategy contest (automated strategies in JForex), FX article contest (Forex article writing), and FX trading award contest (for goal oriented traders driven by achievement, grand prize $5,000).
While Dukascopy does not provide Islamic (Swap-Free) accounts, they offer managed accounts (suitable for money managers, who would like to appoint a trader on the account), very reliable institutional accounts (Dukascopy is also a bank), and every client gets a segregated account by default. Hedging as well as scalp trading is allowed. Active traders will be pleased to have one-click orders and chart trading integrated in their apps, allowing them to trade as fast as possible.
You might find Dukascopy interesting partner not only for trading, but for regular banking services as well. With DS you can place your money safely in Swiss financial environment, which enjoys trust of many important international institutions because of its high level of security and confidentiality.
You can open a demo account and do some virtual trading first, and open a live trading account later. Procedure for opening DEMO account is very straightforward. You have to provide some of your basic contact data and setup some virtual trading account initial figures, like preferred language, base currency, and initial balance.
Opening LIVE trading account requires you to fill out the registration forms first. You can do that online or by printing and filling out PDFs. Regardless of the method you will choose, you will have to send originals by post, including certified copy of your passport. Once the documents are received and approved, the account will be opened for you and you will be provided its number and bank details for funding it. Initial payment has to be via wire transfer (Dukascopy Europe IBS AS clients will have the possibility to choose some credit and debit cards later as well) and you have to deposit minimum required amount, which is $1,000 for Swiss residents and $5,000 for all others. When account is activated and funds deposited you will receive your username and password to login to any of available trading platforms.
You can choose to open account in seven different base currencies. USD, CHF, EUR, GBP, JPY, CAD, AUD. Depending on the account size, you will be provided different services regarding SWFX technology, trading API, Bank guarantees, and third banks custodian services. Minimal order size is 1,000 units of the primary currency or 1 unit for gold.
Protection of client's funds is top priority of every client. DS has developed relationships with several international banks for custody purposes: Liechtensteinische Landesbank (Switzerland) Ltd., Barclays Bank (Suisse) S.A., Bank CIC (Switzerland), Merrill Lynch Bank (Suisse) S.A., EFG Bank S.A., BCP - Banque de Commerce et de Placement S.A., and CBH - Compagnie Bancaire Helvetique S.A. (for fresh list you should check dukascopy.com website).
By having separate custody account, clients can deposit their money at bank of their choice, while trading directly with the Dukascopy Swiss Forex Bank & Marketplace, the most liquid Forex marketplace.
Dukascopy offers their clients number of platforms for manual or automated trading. So called JForex platform allows users to develop and test automated trading strategies.
Java allows cross-platform interface and custom programming code. If you are more looking for manual trading, you will mostly choose among web and stand alone Java platform. First has low technical requirements and is optimized for quick access, while latest is offering detailed monitoring and advanced technical analysis.
If you are on-the-go you might find iPhone/iPad applications your best friend, since it will provide you access from anywhere.
You can also connect your MetaTrader (MT4) to the Swiss Forex Marketplace, if this is your favorite app.
Different applications provide different functionality, but overall you get some great technical analysis, news and communication tools, option to trade manually or automated, different order types possibilities, including place BID/ place OFFER and trailing-stop orders, slippage control, hedging support, market alerts, multi-lingual interface and many other customizations.
Dukascopy is currently offering trading with 32 currency pairs and 2 precious metals (gold, silver) in relation to USD.
Currency pairs: EUR/USD, USD/JPY, GBP/USD, USD/CHF, USD/CAD, NZD/USD, GBP/JPY, EUR/CHF, EUR/JPY, EUR/GBP, GBP/CHF, EUR/AUD, CAD/JPY, CHF/JPY, AUD/JPY, AUD/USD, AUD/NZD, EUR/CAD, EUR/NOK, EUR/SEK, USD/NOK, USD/SEK, AUD/CAD, AUD/CHF, CAD/CHF, EUR/NZD, GBP/AUD, GBP/CAD, GBP/NZD, NZD/CAD, NZD/CHF, NZD/JPY.
Precious Metals: XAU/USD, XAG/USD.
Dukascopy is expected to provide also CFD trading in the future, but no specific dates are known at this time.
Regarding the available types of orders, you can choose among classic order types: market, limit and stop orders, and they also provide trailing stop-loss orders and Bid/Offer orders. Bid/Offer orders are similar to limit orders with some clear advantages: they are placed directly in the marketplace and can be taken by other liquidity consumers, thus allowing the trader to avoid a spread cost; less time is needed to process the execution; traders can specify the time period (Good Till Canceled / Good For / Good Till). Another interesting type of order is MIT order (Market if Touch); MIT is a limit order with a specified slippage value. In comparison to limit orders, the MIT order may have a higher probability of execution within the slippage range.
Advanced users with their own trading algorithms and programs are able to take advantage of API programming module, allowing them to integrate existing methods in Dukascopy's trading facilities.
Tools & Research
Dukascopy is very reach in trading tools and research section. They have a special 'Market Info' section of their website dedicated to news and research, technical analysis, trading signals, economic calendars, movers and shakers, trade strategies, highs/lows, pivot point levels, and more. Probably one of the most interesting research sources is their Dukascopy Forex Television, providing you full market coverage with frequent updates of high quality market analysis in a video stream right on your computer's screen.
Dukascopy has no dealing desk, so all orders are executed via STP (Straight-Through Processing). You can request customer support via email, telephone or Skype 24/6. In case of lost internet connection you can even place a phone order through their emergency line +41 (0) 22 799 4848. Hopefully you will find their support satisfactory and prompt.
The information and opinions in this review are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency and/or opening of an account with Dukascopy Bank.
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Written by: Goran Dolenc