Hosted at www.dukascopy.com is the website of what is known as the Dukascopy forex broker. Althown known simply as Dukascopy, it’s actually a financial group, composed of Dukascopy Bank SA and Dukascopy Europe IBS AS.
According to their site, Dukascopy Bank SA offers direct access to the Swiss Foreign Exchange Marketplace, that provides the largest pool of ECN spot forex liquidity available for banks, hedge funds, other institutions and investors.
Dukascopy EUROPE IBS AS is an EU licensed investment brokerage company which is 100% owned by Dukascopy Bank SA, providing to its clients an access to the Forex Marketplace on the same conditions which are available to the clients of Dukascopy Bank SA.
That means, from the trader’s point of view it’s quite indifferent with which entity of the Dukascopy Group one opens a trading account. However, opening an account with the Dukascopy Bank allows having a real swiss bank account. However in the light of recent swiss government agreements with the IRS and possibly some European counterparts, the swiss banking secret has weakened, leading to the collapse of bank Wegelin& Co, in January 2013. Still, the funds security in swiss banks is still high compared with the EU, as the EU is still eyeing countries with oversized banking sectors, such as Luxembourg, for a possible “haircut”. We remind readers that the Cyprus crisis in 2013 was presented as a bank failure only in itsaftermath ; from the very beginning, the deal was presented as “taxation”, going to affect all accounts, including the ones guaranteed, below 100000 euros. The problem of guaranteed funds appeared pretty late in the end, as the EU realized it was hitting too hard regular Cyprus citizens, in total disregard of banking regulations and principles. However, the moral hazard risk regarding bank accounts in EU is still very high, and therefore is beneficial to have a swiss bank account.
- FINMA regulation : clients are being insured up to 100.000 CHF (Dukascopy Bank) or 20.000 EUR (Dukascopy Europe)
- ECN accounts from 100 dollars (can be opened only by Dukascopy Europe; Dukascopy Bank opens such accounts only for swiss citizens; otherwise the amount required for Dukascopy Bank is 5000 USD); Minimal acceptable order size is 1000 units of the primary currency, 1 unit (ounce) for gold and 50 units (ounces) for silver
- Largest ECN network: that meansevery client is able to trade 100 million EUR/USD in One Click with effective spreads of 1.5-2.0 pips.
- Account can be opened in one of these currencies : USD, CHF, EUR, GBP, JPY, CAD, AUD, SGD, PLN and HKD
- Instant account opening
- Leverage 1:300. Default is 1:100, but it can be 1:300 by request. However, different than for other brokers, the leverage falls to 1:30, therefore posing a Margin Call/Margin Cut danger.
- Islamic swap-free accounts for muslims
- Transparent trading, tick history publicly available
- Equal trading rights :All clients have equal possibilities to provide and consume liquidity within the ECN – Marketplace.
- No sl and limit limitations
- Automated trading
When it comes about trading platforms, Dukascopy has a large offer:
- Simple trading platforms for discretionary traders: web platform and java platform
- An universal, automated trading platform : JForex
- A visual tool for building JForex content: Visual Jforex
The Jforex platform comes with a java editor inside. The user can write his own strategies and indicators, using the JForexapi.
JForex is vastly superior to both MetaTrader 4 and MetaTrader 5, as it features:
- Event based trading, barely introduced in MetaTrader 5, but lacking in MetaTrader 4
- Order-based trading, like MetaTrader 4, with the possibility to use also the positional system, like Metatrader 5
- Tick level backtester , while MT4/5 minimum time granularity is one minute
- Portfolio backtesting on as many instruments as available, that exists, to a certain extent, just in MetaTrader 5
- Server run of the automated strategies, when they are included in the contest.
- Visual Jforex, however, can be pretty hard to understand. It’s actually recommended to start programming using Visual Jforex, because it accesses the strategies in the contest and it translates them to JForexcode, that can be used as a template for your own Strategies.
- Dukascopy does not provide a MetaTrader implementation of its own, however it provides a MetaTrader bridge to be used with a 3rd party MetaTrader station, in order to have access to the Swiss Forex Marketplace.
- SWFX Trader for APPLE iOS
- SWFX Trader for Android
- Data export service for history (including tick data) to .csv or MetaTrader .hst formats
In conclusion, Dukascopy has a redutable offer to accommodate all kind of traders: from the micro to the institutional, from the mobile to the most automated trader running systems on the server.