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Dukascopy Review

Dukascopy rating: 3 votes, average: 4.33 out of 53 votes, average: 4.33 out of 53 votes, average: 4.33 out of 53 votes, average: 4.33 out of 53 votes, average: 4.33 out of 5 (3 votes, average: 4.33 out of 5, rated)
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dukaskopyWhen you regularly use a particular forex trading platform you tend to run into some problems which are the result of your broker causing the forex price to move in the opposite direction of the trade you make. For example let us assume you opened a forex trade and then set a stop loss and the profit level at which you would like to exit the trade. You will find more often than not the price tends to move in a direction not anticipated by you. Generally it could be the result of a natural outcome. But some brokers simply let the price run in the direction of the stop loss. The result is you could loose the trade. This could happen only if the broker you deal with is the type that makes money on the spread. But then most brokers make money on the spread. Where does that leave you? Look out for a broker who doesn’t operate on the width of the spreads. Admittedly there are very few brokers that operate that way. But the fact remains that they exist. Dukascopy is one such broker.

The brokers that operate differently like Dukascopy are the ones that make their money from a commission that is charged per trade. Ideally this is the type of broker you should deal with (but these type of brokers are few), and not one that makes money on the spread, because what if the spreads widen too much? These are ECN (Electronic Communication Network) type of brokers, and Dukascopy for example is an ECN broker in the form of a limited company based in Geneva, Switzerland with share capital of CHF 22 million.

Although Dukascopy launched its forex trading platform in 1999 it was only in 2004 that it became a full-fledged Swiss Brokerage House through the creation of Dukascopy (Suisse) SA which is located in Switzerland and is in conformity to Swiss laws. For example Dukascopy is regulated by ARIF, which is a self regulatory body recognized by the Federal Finance Administration in Switzerland and exercises controls in the area of money laundering.

Surprisingly Dukascopy is headed by a physicist Dr. Andre Duka, and the entire operational structure of the company is well-laid out on their website. The Dukascopy site is accessible in eight different languages namely English, Spanish, Russian, Japanese, German, French, Arabic, and Chinese,

In 2006 Dukascopy (Suisse) SA launched the SWFX Swiss FX Marketplace through which it offers direct access to the Swiss Foreign Exchange Marketplace. You got to remember that this marketplace is the largest pool of interbank spot forex liquidity available for professional traders and institutions worldwide.

Company’s Market Position

Dukascopy combines access to the Swiss Foreign Exchange Marketplace with an enhanced trading platform coupled with strong banking partnerships it has put in place. For example, Dukascopy – SWFX Swiss FX Marketplace (Dukascopy’s proprietary technological solution and registered trademark) continues to set industry standards in forex trading, especially for large players. Why is that so?

For each trade executed over the Dukascopy Trading Platform, SWFX – Swiss Forex Marketplace, there are offsetting over-the-counter transactions: between the buyer and Dukascopy as the seller, and transactions between the seller and Dukascopy as the buyer. This is a unique way of ensuring the genuineness of the forex transactions conducted over the Dukascopy trading platform.

Types of Services Offered

The trading type is ECN which means Electronic Communications Network. 19 currency pairs can be traded and you could do hedging as well, but there is no provision for trading in precious metals and oil. The minimum deposit is $ 50,000 and the minimum trade size is $100000, and the leverage offered is only 100:1. You will not find any fixed spreads with Dukascopy, but only variable spreads. The spread on majors is 0.5 to 1 pips. But the spread will sometimes get as high as 4 pips for GBP/USD.

You are given interest on unused balance in your account and there is no facility for Islamic swap free accounts. You can only deposit money through wire transfer and not through PayPal or credit card.

Setting up a demo account with Dukascopy is easy .You can choose to run either Java or Web-based software platforms of Dukascopy and that’s your choice. The demo is good and comes along with a good PDF tutorial. For starting a real account you will have to download the application, fill it up and mail the documents direct to Dukascopy. For the documentation part, what they ask you normally is a certified copy of your passport or any utility bill showing your residential address.

Once you have set up a real account and funded it, get ready to trade with low spreads, slippage control, real time tick charts, and great customer service whenever you need it.

But remember Dukascopy will charge you a commission at the rate of $20 USD per one million USD traded.

Since Dukascopy is meant for the most serious forex trader with large capital it is a certainty that some of them would prefer Dukascopy Managed Accounts. These managed accounts are handled by professional traders with years of experience in institutional foreign exchange trading. These large managed accounts can even be funded by bank guarantee, and Letter of Credit. If you have a managed account, then you will be charged an additional commission of $20 USD per one million USD traded.

Trading Platform

The Dukascopy trading platform is a MetaTrader 4 platform that gives you absolute control over the order execution process and that’s why traders with large capital prefer it. For example clients could trade billions of dollars in an absolutely secure “one-click” trading environment. This platform has the facility of trailing stops but remember you cannot do mobile trading.

Dukascopy platform gives you full depth of the market in terms of real time interbank rates. Besides you have the choice of using either the Web or Java Platform versions. You get the usual limit orders, take profit and stop loss features, plus added slippage control. You could even do hedging, and you always have 24/6 access to the Trade Desk Support. Other features include advanced charting, technical analysis, and streaming news from different sources.

One of the important features of this platform is the fact that it is designed to operate efficiently even with higher lot sizes say over 5 million for instance.

Trader Support

Trader support is one of the excellent features of Dukascopy. For example they have an emergency phone line through which you could connect with them during trading hours. Live chat facility is available. In other words, support is provided by a 24/6 trading desk if clients need to get their doubts on trading cleared. Skype connection is an available option.

Site Design and Ease of Navigation

There are hardly any advertisements in the site and therefore you don’t get distracted, and so you could easily get whatever information you were looking for. This site is certainly designed for the most discerning forex trader.

Advantages

Dukascopy have a good platform with good features to protect the clients, they provide good service and they have enough liquidity.

They have low spreads and great slippage control too.

They are well regulated within the Swiss legal system and opening an account is not very cumbersome although it takes a reasonable period of time.

The real account provides the same performance as demo account, and that would mean no surprises when switching from demo to real account.

Outstanding customer support is the key to their functioning.

Disadvantages

Since you need a minimum of $50,000 to open a trading account with them, it may unfortunately shut many people out from the experience of trading with Dukascopy. In other words there is no service for small retail clients

The platform does not have enough exotic currency crosses for traders interested in currency crosses.

Another negative is they only allow 100:1 leverage.


On the whole, Dukascopy is one of the most reliable brokers around in terms of execution speed, slippage, and spreads. It is worth remembering that a broker with some of these on the good side is probably a good broker to be dealing with.

Perhaps Dukascopy is the right broker for you if you intend to invest a large capital in forex trading. The vital point to remember is, if you have a good ECN broker, and if they in turn have many liquidity providers, then you could be rest assured of getting the smallest spreads and the best fills on your orders. That’s what forex trading is all about.

Write your own review of Dukascopy

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6 Comments»

Comment by pamela
2009-08-17 11:11:45

Dukascopy is a big ticket trading platform. I tried the demo and setting it up wasn’t difficult. I discovered they were ECN kind of broker charging commissions on trades effected. Commissions I was told was $20 for every USD 1 million traded. As I was with demo platform the question of commissions also didn’t arise. But I felt even with the demo, that they were totally different kind of broker.

I couldn’t of course open a real account with them as it meant putting in $50,000 at one go at the minimum. That surely puts it beyond the reach of curious forex traders! Not many would want to start off with that kind of money. With the demo you can trade several currency pairs and hedge as well. Leverage offered is 100:1 and spreads are variable. For majors spreads are in the range of 0.5 to 1 pip but could climb to 4 pips or so when market gets volatile.

The trading platform was meta trader 4 with trailing stops, but yes, there wasn’t any option for mobile trading. I checked up with them, and they told me that was there was no mobile option in real platform too. But you can choose between web and java platform, but that’s when you go in for the real account. Charting, technical analysis and streaming news are all top class.

As I said at the outset, this is a big ticket trading platform, meaning it is for the big guys in forex trading who would be trading in hundreds of thousands of dollars in an absolutely secure one-click trading environment. May be if you are working in the forex dealing desks of major banks and financial institutions you should try out Dukascopy. Its got everything that an ECN broker should have and much more!

pamela ratings for this post: pamela gives a rating of 5pamela gives a rating of 5pamela gives a rating of 5pamela gives a rating of 5pamela gives a rating of 5
 
Comment by Ronald Subscribed to comments via email
2009-08-22 21:35:16

I’ve been trading at them for half year. And since then I had no big problems, all other was fastly resolved by Dukascopy support. Yes, the technology they use is quite difficult, but after few days you can enjoy the data that is available.

The other thing I enjoyed very much – they have many IB which started a war who will give highest rebates. I started with forextradingchoice.com and now my profit rate is much higher.

Ronald did not rate this post.
 
Comment by olivia
2009-08-25 12:51:55

ECN brokers are far and few, and when they come its great stuff.

olivia ratings for this post: olivia gives a rating of 4olivia gives a rating of 4olivia gives a rating of 4olivia gives a rating of 4olivia gives a rating of 4
 
Comment by Oswaldo Swanick
2010-11-30 04:17:11

Important data and Terrific design you got here! I would like to thank you for sharing your thoughts and time into the things you post! Thumbs up

Oswaldo Swanick did not rate this post.
 
Comment by Mathe Szabolcs
2010-12-08 03:33:33

Unbelievable, but:
Ducascopy’s min account is 1000 usd now, not 50000 as a few years before.
The minimum trade size is 1 microlot (= 1000 units) !!!
So practically they become an ideal retail forex brokers for me, and not Market Maker, but ECN.
A very big difference for me.

Leverage only 1:100, but if is available to trade micro lot too, than who cares about (high)leverage…I will use still around 1:10-1:20 That is why I am moving from Oanda to they.

I think still Oanada is the best MM broker or if you have under 1000 usd, and if you don’t want to trade at news releases,( than they have 10 pip spread, else usually 0.9 on EUR/USD). At ducascopy demo account I see variable spreads, but on EUR/USD , after NY and London close is around 1-1.2 Pip now ( at Oanda 1.2 now)

I am not interested of the platform type, because in 2-3 weeks practice I can press 2-3 button in any king of platform and I can use any other preferred platform for analyse, but I care about the execution time, slippage, spread and they politics vs traders (scalpers).

I can’t give yet a reviews about the live accounts

Mathe Szabolcs did not rate this post.
 
Comment by Mathe Szabolcs
2010-12-08 03:35:10

I want to give 10 for they in a scale of 1-5 :)

Mathe Szabolcs did not rate this post.
 
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