Dukascopy Review South Africa – Unbiased Pros & Cons Revealed ( 2020 )

Dukascopy Review South Africa

Dukascopy Review South Africa

 

WHAT IS DUKASCOPY?

 

According to research in South Africa, Dukascopy is a Swiss online forex and CFD broker and subsidiary of Dukascopy Bank SA, which is officially registered as a Swiss bank with the Swiss Financial Market (FINMA) authority.

Dukascopy Bank SA offers both personal retail Forex trading and binary option accounts and has extensive business interests.  Dukascopy Bank itself was only founded in 2004 in Geneva, Switzerland but already originated in the 1990’s.

Having been in business since 2004 Dukascopy prides itself on the security of its funds, no price manipulations and speedy executions. In 2006 the company started up its Swiss FX Marketplace, which operates as an ECN and has since grown and expanded internationally.

Dukascopy has offices in Zurich, Riga, Kiev, Moscow and Hong Kong, and employs over 200 people. In 2015 Dukascopy acquired Alpari Japan and operates it as Dukascopy Japan Co.  out of Tokyo.

The two subsidiaries are regulated by the financial regulators in their respective countries and trading conditions therefore vary depending on which local entity a trader signs up with.

 

SAFE OR SCAM?

 

One of the best means of determining the safety of a broker like Dukascopy, is to establish which regulating authorities are watchdogs over its actions.

​Dukascopy is regulated as a bank and a securities dealer by the Swiss Financial Market Supervisory Authority FINMA and as a bank is also subject to stricter regulations than forex brokers in other legal jurisdictions.

All forex brokers in Switzerland are required to be licensed as a bank.

Dukascopy maintains capital reserves consistent with FINMA’s regulatory requirements and client deposits of up to CHF 100,000 are protected by the Swiss government, in case of the company’s bankruptcy.

This protection extends to all of Dukascopy’s clients, regardless of whether they live in Switzerland or not and to deposits held in any currency.

Dukascopy also decided to pardon negative account balances resulting from the SNB Swiss franc fiasco in 2015 at great cost to the company itself, even though they were not required to do so.

Dukascopy clients participate in the company’s ECN “Swiss FX Marketplace” and its main liquidity providers include Barclays, Currenex, Deutsche Bank, JP Morgan, Goldman Sachs, Citibank, HSBC Bank, and others.

Clients are protected from any conflicts of interest with the same price guaranteed, with price history made public for verification by clients.

 

DUKASCOPY REVIEW OF PRO AND CONS

 

PROS CONS
1. Numerous platforms and features 1. Somewhat overwhelming website
2. Both demo and Islamic accounts 2. Educational resources and products are limited.
3. Good customer support 3. Inability to close chat
4. 600+ tradable assets include Forex ECN trading 4. Higher min. deposit of $1,000
5. Strong regulation under a Swiss banking licence and by Japan’s FSA and European FCMC.
6. Access to high leverage of 1:200
7. Professional proprietary trading platform, JForex
8. Wide range of market research tools, trading contests and bonuses.

 

LEVERAGE

 

Leverage is a facility that enables you to get a much larger exposure to the market you are trading than the amount you deposited to open the trade. Leveraged products, such as forex trading, magnify your potential profit – but also increase your potential loss.

Leverage 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.

Margin is the amount of collateral to cover any credit risks that may arise during your trading operations. It is expressed as the percentage of position size (e.g. 5% or 1%), and you have to have funds in your trading account to ensure sufficient margin.

As for Dukascopy, according to its obligations towards its regulatory requirements, the standard allowed level set by FINMA is 1:30 for Forex instruments.

The Latvia-based subsidiary is also subject to the new EU regulations, which cap trading leverage at 30:1, but it is still possible for EU-based traders to sign up directly with the office in Switzerland, thus bypassing the EU restrictions.

 

ACCOUNTS

 

A forex account at Dukascopy is a trading account that you will hold and that will work similarly to your bank account, but with the difference that it is primarily issued with the purpose of trading on currencies.

Forex Islamic accounts are also known as swap-free accounts as they imply no swap or rollover interest on overnight positions, which is against Islamic faith.

Often, the number and type of accounts that a trader can open with a broker company differs depending on the country in which it operates and the regulation authorities under whose jurisdiction it falls.

In the case of Dukascopy its account types vary according to the client type. It offers an individual account, a joint account (designed for two individuals) and a corporate account.

The different trading accounts include a standard live trading account, a demo Forex/CFD account, demo MT4 Forex account, demo Binary account and MCA current account.

Traders can open the ECN account with Dukascopy Europe or Dukascopy Bank in Switzerland.

Apart from regulatory jurisdictions and related investor compensation, which limit the main difference between these two entities, the minimum deposit at the EU entity is just $100. The Swiss entity requires $5,000 but for Swiss residents it is only $1,000.

 

MARKET INSTRUMENTS

 

Dukascopy offers a total of 653 symbols to trade across multiple markets covering forex and CFD traders with 60 forex pairs and 593 CFDs.

Dukascopy also offers cryptocurrency trading with CFDs on significant crypto assets, and the actual underlying (non-CFD) across its own launched cryptocurrencies.

In addition to forex, Dukascopy offers trading for indices, metals, stocks, cryptocurrencies and binary options. They offer the following:

  • 60+ currency pairs for FX trading, based on major and minor world currencies
  • two crypto pairs based on Bitcoin and Ethereum
  • 18 Indices CFDs based on baskets of different blue-chip stocks and US Dollar Index
  • three Metal CFDs based on gold, silver and copper
  • four Energy CFDs based on Crude Oil (WTI, Brent), Gas Oil and Natural Gas
  • two Bond CFDs based on UK and German government securities
  • five soft CFDs based on Coffee, Cocoa, Sugar, Cotton, Orange Juice
  • 500+ Stock CFDs based on shares of US, UK and EU companies
  • 40+ ETF CFDs based on exchange-traded funds containing various tradable assets

 

Read the CrescoFX Review here

 

FEES

 

Due to its presence in different countries Dukascopy may offer various account types that may differ according to the regulation entity to which it complies, therefore clients may experience different fee structures too, according to their country or place of residence.

Cost depends on different factors, like spread and margins.

Dukascopy’s commissions are fairly reasonable, starting at $3.50 per 100,000 lot per side for the smallest accounts. Commissions decrease for larger account sizes or higher trading volumes.

Account balances greater than $25,000 are charged $2.50 per lot per side and account balances greater than $50,000 are charged $1.80 per lot per side. For very large accounts greater than $10,000,000, the commissions drop to $1.00 per lot per side.

In terms of these costs, Dukascopy competes with the top forex brokers that support automated trading and active trading programmes.

 

DEPOSIT AND WITHDRAWAL

 

Clients of Dukascopy can open and fund new accounts via wire transfer, debit and credit cards in a wide choice of currencies.

Dukascopy’s partner bank however charges a commission of between 2% and 2.5%, so this method is not recommended for large transfers. Dukascopy does not charge for incoming wire transfers but charges an outgoing transfer fee according to currency.

Minimum deposit amounts vary depending on the account type but starts from USD 100 (Dukascopy Europe) and from USD 1000 (Dukascopy Swiss).

Since client deposits of up to 100,000 CHF are protected by government regulation, Dukascopy allows clients to keep their deposit with their own bank if it is greater than $100,000 USD. Dukascopy charges an annual fee of 1.25% to use this option though.

Transaction fees may be charged by partner banks that vary depending on the currency, ranging from 1.2% to 2.3%. Withdrawal options are the same as deposit options.

 

TRADING PLATFORMS

 

The forex trading platform is in essence the software provided by Dukascopy to its clients to carry out their trades.

Dukascopy trading platforms provide access to the Swiss Forex Marketplace (SWFX). There are several different platforms that all support a wide range of trading orders.

 

Java Platform  

This platform is designed for manual trading and simultaneously displays all necessary trading information without switching between different windows.

Traders can benefit from various technical analyses, market research tools and instant communication with a live trading support team.

 

JForex Platform

This platform is recommended for manual and/or automated trading and ideal for traders interested in automated trading and/or developing and testing trading strategies.

The company also offers a web trading platform with instant market access and a mobile platform for smartphones.

 

The Web Binary Trader

This is the binary options trading platform with many features of its own where trading can be done securely online through a one click trade to an unlimited number of accounts.

Although Dukascopy doesn’t provide direct access to the Metatrader4 platform they allow connectivity to it through third party providers.

Dukascopy also allows access to its API, to connect to Dukascopy servers with a customised software solution.

 

HOW TO OPEN AN ACCOUNT

 

The Dukascopy review is simple and easy.

Similarly to a bank, if you want to register a forex trading account with Dukascopy for the first time, you will be required to go through a basic “know your customer” process.

This will allow Dukascopy to make sure that your submitted personal details are correct and the safety of your funds and your account details are ensured.

Dukascopy’s accounts can be opened by both retail and professional traders easily from its homepage.

You can open a demo account that can be used for 30 days by filling in the featured form and your login information will be sent to the registered email address.

Once you are ready for live trading, you can open a live trading account in three steps:

  • Complete a simple online registration form.
  • You will get the instructions to verify your identity vie email or you can opt for video identification, which takes around 15 minutes with the help of the Dukascopy Connect app on your mobile device.
  • Fund your account

 

CUSTOMER SUPPORT

 

Potential traders need to make sure the broker they choose will offer support and help whenever they may need it, in order to help customers easily find the exact answers to their questions and offer them the best user experience.

Dukascopy offers customer service via email and phone six days per week. Chat support is available during working hours and users can contact the company via Skype instead of international calls.

Clients can submit a call back request through their website, and will receive a call back from the Dukascopy customer service department.

 

EDUCATION

 

Before starting to trade, potential clients of Dukascopy should avail themselves of all possible information and trading skills to be successful in the world of forex and commodity trading.

If Dukascopy’s website does not provide enough means, a trader should explore other informative websites and means to obtain that knowledge.

Dukascopy offers a series of educational video tutorials that explain the various aspects of its trading platform, live webinars in several different languages and seminars are sometimes available in different parts of the world.

Dukascopy TV has about 20 different stations in several languages with interesting programmes such as Market Glance, Building Blocks, Crash Dummy Dollar and more.

Dukascopy also offers others the opportunity to incorporate this section into their own websites.

 

RESEARCH

 

To be able to trade with confidence and success, potential traders should do as much possible research about this kind of speculative trading before commencing, but also preceding every daring deal.

This will ensure that they don’t lose money unnecessarily and on the other hand to trade as profitable as possible.

Adequate market information is provided to Dukascopy clients in the form of updated economic news, charts, trading signals, technical indicators and forex trading calculators for accurate decision-making.

Research tools also include streaming market news from Reuters and MarketPulse, a live economic calendar, market sentiment indicators, technical pattern analysis and charting.

 

AWARDS

 

Since being an awarded company instils extra confidence in traders, Dukascopy has garnered 21 industry awards accumulated during its years in business, including:

  • ForexBrokers Best Platform and Tools (2018)
  • ForexBroker Best Mobile Trading (2018)
  • China (Shenzhen) Forex Expo’s Best Forex Bank (2018)
  • London Forex Show’s Best Forex ECN/STP Broker (2018)
  • IAFT Awards’ Best Provider of Liquidity (2017)
  • China (Shenzhen) Forex Expo’s Best Global Professional Trading Platform (2016)

 

CONCLUSION

 

Dukascopy can be summarily described as a worthwhile company for potential traders, knowing that it is able to offer a host of features that are often unavailable with other Forex or binary options brokers.

New traders will find many different features available and both new and experienced traders should have no trouble using them.  Customers can benefit from all the information available on the site before they invest.

All information is available in many different languages and all types of trading are allowed, including scalping.

Dukascopy is well established and operates in a strict regulatory environment, with client deposits protected by Swiss bank regulations.

 

Read the BP Prime Review here

 

DISCLAIMER

 

Dukascopy warns all potential customers that Forex and CFDs trading always carries a high level of risk and may not be suitable for all investors.

Before deciding to trade the products offered by Dukascopy, potential traders are advised to carefully consider their investment objectives, financial situation, needs and level of experience before investing money they cannot afford to lose.

Dukascopy warns that margin trading involves the potential for profit as well as the risk of loss and that movements in the price of foreign exchange and commodities are very unpredictable, hence Dukascopy cannot guarantee a maximum loss that a trader may suffer, according to research in South Africa.

 

Regulated By FSB-SA

Your money is safe with us  |  Enjoy fully segregated accounts