Dukascopy Europe Review
Dukascopy Europe provides a single account type with leverage up to 1:300, 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.
PAMM (Percent Allocation Management Module) services are also available with this broker.
The Company. Security of Funds
Dukascopy Europe Europe IBS AS
Dukascopy Europe is the EU subsidiary of Dukascopy Bank – a well-respected Swiss forex broker. Obviously, Dukascopy Europe comes with most of the perks offered by its parent company: ECN trading through the Swiss Forex Marketplace (SWFX) ECN dealing model, which is extremely transparent; streamlined and flawless operations; secure payments to and from the trading account; seminars and webinars, various trading and other forex-related contests, and so on. There are, however, quite a few differences between the two companies.
For starters, Dukascopy Europe does not hold a banking license like Dukascopy Bank; it is very well regulated, though, so there is nothing to be concerned about. The broker is located in Latvia and falls under the jurisdiction of the Financial and Capital Market Commission there. Furthermore, it complies with EU regulation (MiFID) and offers additional investor protection.
FCMC Forex brokers are required to hold client funds in segregated accounts, protect investors through investor protection funds, offer insurance against broker insolvency, and provide detailed information about their financial transactions to the FCMC through independent audit reports generated by certified experts.
In addition, Dukascopy Bank, which is regulated by the Swiss Financial Market Supervisory Authority (FINMA) both as a bank and a securities dealer, exercises consolidated supervision over its Group entities, ensures adequate liquidity, risk diversification and capital adequacy at a group level. The Group also has a Japan-based unit (as a result of acquisition of Alpari Japan in the beginning of 2015.
Minimum initial deposit
Clients of Dukascopy Europe’s European subsidiary can open accounts with just $100, which is average for the forex market. In comparison, Dukascopy’s clients are required to invest $5000.
Average Spreads & Commissions
The spreads offered by Dukascopy Europe 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 Europe (EU subsidiary of Swissquote Bank), offers variable spreads starting from 0.9 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
Dukascopy Europe provides its clients with maximum leverage of 1:300, which is considered average for the market. In comparison, Swissquote Europe and Dukascopy both over leverage up to 1:100.
Keep in mind, however that higher leverage involves greater risk of losses.
Ducascopy offers its proprietary Forex trading platform JForex, which provides access to Swiss Forex Marketplace (SWFX). It is available as desktop, web and mobile versions.
JForex platform is designed for traders interested in automated trading and/or developing and testing trading strategies based on the JAVA programming language. 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
Unlike most brokers, Dukascopy Europe does not support the popular MetaTrader 4 (MT4) platform. However, customers are able to use a third-party provider’s MT4 bridge.
Besides, this broker also offers the possibility of API integration for professional traders (who deposit a minimum of USD 100.000). The Dukascopy Europe 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.
Methods of Payment
Clients of Dukascopy Europe 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 Europe does not support e-wallets, such as Skrill & Neteller.
With a minimum initial investment requirement of $100 and leverage of up to 1:300, Dukascopy Europe is a lot more suitable for beginning traders (compared to the Swiss broker). Its clients are able to make their first steps in forex, get in touch with other traders on the designated community page of the broker, benefit from the various educational resources available, and trade with a true ECN via the broker’s own platforms.
Dukascopy Europe Review Conclusion
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