Dukascopy Bank review: Unbiased Analysis & Expert Opinion
This comprehensive Dukascopy Bank review provides an in-depth look at the broker’s offerings, platforms, and fees. Dukascopy Bank is a reputable Swiss online bank and brokerage firm, known for its advanced trading technology and diverse investment options.
Dukascopy Assets and Investment Offerings
Dukascopy offers a broad range of investment instruments, totaling 653 symbols. This includes extensive coverage for both forex and CFD traders across multiple markets.
- Forex Pairs: Traders can access 60 different Dukascopy forex pairs.
- CFDs: A substantial 593 CFDs are available, covering various asset classes.
- Dukascopy Cryptocurrency Trading: Dukascopy facilitates cryptocurrency trading through CFDs on major crypto assets. Furthermore, it offers actual underlying (non-CFD) trading for its proprietary cryptocurrencies, including Dukascoin.
As of June 30, 2019, Dukascopy Bank reported over 148 million Swiss francs (CHF) in assets on its balance sheet. Clients of the Swiss entity also benefit from 100,000 CHF in insurance protection provided by the regulatory compensation fund esisuisse.
Dukascopy Dukascoin and Crypto Offerings
Dukascopy has actively embraced blockchain technology. In addition to CFDs on Bitcoin and Ethereum, the bank launched its own proprietary cryptocurrency, Dukascoin (DUK+). It’s important to note that crypto CFDs are generally not available to retail traders from any broker’s UK entity, nor to UK residents, due to regulatory restrictions.
Key Investment Features:
- Forex Trading (Spot or CFDs): Yes
- Tradeable Symbols (Total): 593
- Forex Pairs (Total): 60
- U.S. Stock Trading (Non CFD): No
- Int’l Stock Trading (Non CFD): No
- Social Trading / Copy Trading: Yes
- Cryptocurrency (Physical): Yes
Dukascopy Fees and Commissions
In terms of trading costs, Dukascopy stands out among forex brokers, especially for those involved in automated and active trading programs. This Dukascopy Bank review highlights its competitive fee structure.
Dukascopy offers a single account type for FX trading, the Forex ECN account. While spreads are consistent across all ECN clients, the commission rates vary based on trading volume, account balance, and net deposits. This tiered commission structure allows for more favorable rates for high-volume traders.
For instance, average EUR/USD spreads during Q3 2019 were 0.30 pips for the US trading session. When combined with a default commission rate of 0.70 pips per round turn, the all-in cost amounts to 1 pip. This pricing is comparable to other commission-based brokers like Saxo Bank.
Swiss vs. EU Entity Differences:
Traders can choose to open an ECN account with either Dukascopy Europe or Dukascopy Bank in Switzerland. Key differences include:
- Regulatory Jurisdictions: Different Dukascopy regulations apply to each entity.
- Investor Compensation Limits: These vary according to the regulatory body.
- Minimum Deposit: The EU entity has a lower minimum deposit of $100, while the Swiss entity requires $5,000 (or $1,000 for Swiss residents).
Dukascopy Trading Platforms
Dukascopy excels in providing sophisticated trading technology, offering traders the tools necessary for success. This Dukascopy Bank review emphasizes their proprietary platform.
The flagship platform is JForex 3, available as both a desktop and web-based application, compatible with Windows and Mac. While some traders might prefer MetaTrader 4, JForex 3 is highly regarded, earning “Best in Class” in 2020.
The JForex 3 desktop platform is feature-rich and user-friendly, particularly beneficial for technical traders. It offers 24 drawing tools, 291 technical indicators (67 for the web version), and supports custom indicator imports. A minor drawback noted is that chart zooming on the desktop version could be smoother compared to other platforms.
Advanced Platform Features:
- Algorithmic Trading: JForex 3 rivals MetaTrader in supporting algorithmic trading and custom indicators. Users can also access cloud storage and VPN services for 24-hour trading system operation.
- App Store: Dukascopy provides an app store with hundreds of applications compatible with the JForex 3 platform.
- Advanced Order Management: Beyond the common “close all” button, Dukascopy offers a “cancel all” button, allowing quick cancellation of all pending orders. This feature, often seen in high-frequency trading via API, is a significant advantage.
Platform Availability:
- Virtual Trading (Demo): Yes
- Proprietary Platform: Yes
- Desktop Platform (Windows): Yes
- Web Platform: Yes
- Social Trading / Copy Trading: Yes
- MetaTrader 4 (MT4): Yes
- MetaTrader 5 (MT5): Yes
Dukascopy Regulations
Dukascopy Bank operates under strict regulatory oversight, providing a secure trading environment. The Swiss entity is regulated by FINMA (Swiss Financial Market Supervisory Authority), offering investor protection up to 100,000 CHF. Dukascopy Europe IBS AS is regulated by the FCMC (Financial and Capital Market Commission) of Latvia within the EU/EEA, adhering to MiFID II directives. These robust Dukascopy regulations ensure client asset safety and operational transparency.
Verdict
This Dukascopy Bank review concludes that Dukascopy is an excellent choice for experienced traders seeking advanced technology, competitive pricing, and a wide array of trading instruments. Its JForex 3 platform is a strong contender against industry standards, and the availability of Dukascopy cryptocurrency trading, including Dukascoin, adds significant value. The firm’s strong regulatory framework further solidifies its position as a trustworthy broker.
