Dukascopy Review

Dukascopy Review By A Trader | A Helpful Read Before You Sign Up

Forex, Indices, Energies, Metals, Cryptocurrencies, Soft Commodities and Stocks

  • EU regulated ✔
  • EUR/USD spreads from 0.1
  • Bitcoin CFD trading
  • JForex 3 and MT4
  • $100 minimum deposit
  • Automated trading
  • 60+ Forex pairs
  • 500+ markets
ECN Trading on JForex 3 and MT4 • Dukascopy

Dukascopy EU Review

This is an EU regulated ECN broker, which provides traders access to liquidity pools, for a relatively low minimum deposit of $100. It charges competitive commissions which vary depending on a number of factors, including volume traded. To trade, it provides JForex 3, an advanced trading platform with a wide range of indicators and tools, including support for automated trading as well as manual trading and additionally provides MT4.

Dukascopy has no restrictions on trading styles and is a no dealing desk broker, offering STP (Straight-Through-Processing) order execution. Irrespective of account size, all traders have access to the same spreads, liquidity, platform and tools.

MT4 Offered

Dukascopy now provides the MetaTrader 4 (MT4) online trading platform. Currently it offers 40+ Forex pairs including Gold (less markets than JForex). MT4 provides MQL4 Expert Advisors, allowing the trade to trade using automated trading strategies in the Swiss FX Marketplace. For traders who wish to make their own trading decisions, 50+ technical indicators are provided on the platform.

Bitcoin and Ethereum CFD trading

Dukascopy now offers trading in Bitcoin (BTC/USD) and Ether (ETH/USD) CFDs. The trader does not own the underlying cryptocurrency, rather speculates on the movement of its prices (thus no wallet is needed to store it). Dukascopy

Briefly, what does Dukascopy do ?

Dukascopy EU is is a subsidiary of Dukascopy Bank SA. It provides ECN trading conditions, by offering access on JForex 3 to liquidity pools in the SWFX Marketplace (operated by Dukascopy Bank). This allows it to provide low spreads, with a commission charge added. Dukascopy provides services to all kinds of traders, including private clients and institutional clients, hedge funds and banks.

What is the SWFX Marketplace ?

It is a centralised marketplace composed of decentralised combined liquidity from the Interbank market. It is operated by Dukascopy EU's parent Dukascopy Bank SA as it is itself a participant in the Interbank market (since it is a bank). Combining liquidity into a single marketplace helps ensure speed of order processing and a range of prices to help keep costs low (like a marketplace). Both Dukascopy Bank SA and Dukascopy EU provide direct access to this marketplace for retail traders. Orders from clients are sent anonymously with an identifier that they are coming from Dukascopy. This helps to ensure that Interbank participants do not know the identity of the trader.

In more detail, what does Dukascopy do ?

Dukascopy Bank SA is a Swiss regulated Bank. In common with other banks it provides liquidity. As part of this process, it operates the Swiss FX Marketplace. This enables it to access multiple providers to trade with. As well as providing services to other banks, institutions and so on, it also offers services to retail clients, as does its EU regulated subsidiary, Dukascopy EU. Via JForex 3 and MT4, it provides direct market access to the Swiss FX Marketplace, to retail and other clients.

The advantages of this to retail clients are speed of execution and prices (since there is an active marketplace for orders). It offers STP execution in no dealing desk conditions, with variable spreads. Many brokers operate A and B (order) books. A Book is outside liquidity providers and B Book is the order book of their own clients. There is no 'B Book' trading (according to Dukascopy), all trading is 'A Book'. ECN brokers may have a hybrid model where they use B and A Book, as this can reduce slippage (i.e. they try and net trades with their own clients). However Dukascopy uses its marketplace to ensure swiftness of order execution, which is another way of reducing slippage. The trader may limit the amount of slippage when placing an order, but if they do so, the order may be rejected.

Dukascopy can be seen as bringing clients into the liquidity pools to some extent, offering them the same conditions as others, rather than separating them from the pool. However orders are sent anonymously, identified only as coming from Dukascopy.

Is it possible to trade as a discretionary trader, as well as with robots ?

As Dukascopy does not restrict trading styles, both discretionary and automated trading is possible. Dukascopy provides JForex 3 and MT4. JForex 3 has a wide range of charting tools on its platform, which is visually attractive. In principle, it is as suited to discretionary as automated trading (the tools are on the platform to analyse markets). MT4 can be also used for both discretionary and automated trading.

High speed access to liquidity and no dealing desk conditions mean that a range of automated trading styles are possible at Dukascopy. JForex 3 is optimised for ECN conditions, with Level II quotes, showing depth of market. MT4 has automated trading strategies called Expert Advisors. For all traders, it should be noted that while spreads may be very low, there is a commission charge added. Thus the full cost of the trade is not the spread, it is the spread plus the commission charge.

Awards

Dukascopy EU was voted Best Forex ECN/STP Broker at the 2018 London Forex Show.

Minimum deposit

The minimum deposit is $100. There is no maximum deposit.

Minimum Forex trade size

The minimum Forex trade size is 1000 units of the base currency. There is no preset maximum lot size.

ECN trading conditions

Dukascopy EU offers ECN liquidity by providing access to the Swiss Foreign Exchange Marketplace which is a pool of liquidity for hedge funds, banks, institutions and pro traders, operated by Dukascopy Bank. Dukascopy EU charges a commission and makes its money from this charge.

There is also a bid/ask spread, but Dukascopy EU does not make money from this as the bid/ask spread is used to buy or sell in the Marketplace. Dukascopy EU does not act as the counterparty to the customer's trades (but Dukascopy Bank does). Traders can also act as a liquidity provider, placing bids and offers to the marketplace, thus avoiding the bid/ask spread, if they are matched.

Account opening

Accounts can be normally be opened by completing an online application form and sending ID scans and proof of address. After the account is funded, the trader receives their login details. Dukascopy.

Platforms

Dukascopy uses JForex 3. JForex has a relatively large number of indicators, over 200 and supports automated as well as manual trading. Time frames are from tick to 1 month. As well as time based intervals, it also allows for price based intervals, including Range, Renko, Line Break, Kagi, Point & Figure and Tick Bars. JForex 3 has a visually attractive sleek design.

Dukascopy now provides MT4 as well. There are currently less markets on MT4 than JForex, with 40+ vs 500+. MT4 allows the trader to use and create automated trading strategies called Expert Advisors.

JForex supports automated trading and allows trading strategies to be developed and tested in the JAVA programming language. The platform provides messages about such events as an upcoming webinar, with links to join it.

As well as a desktop download, Dukascopy provides JForex Web 3 (a web trading platform) and JForex 3 apps, for mobile and tablet use. MT4 is available on desktop and mobile and tablet.

Markets

Dukascopy offers 500+ individual markets, covering Forex, Indices, Energy, Metals, Cryptocurrencies, Soft Commodities and Stocks, including 60+ Forex pairs on Jforex. The metals offered are Spot Gold and Silver and Copper. On MT4, 40+ FX pairs are provided including Gold.

Spreads and leverage

  • Spreads are variable. The minimum EUR/USD spread is 0.1 (average 0.2), the minimum spread for UK100 is 1, the minimum spread for Gold is 0.10 and the minimum spread for US Crude Oil is 0.02.
  • For higher volume traders, spreads will tend to be higher, but Dukascopy can offer to all traders 100 million GBP and 200 million USD with effective spreads of 4-5 pips.

Maximum leverage at Dukascopy is .

Commissions

  • The platform automatically charges a commission for trades, depending on the volume traded, the initial deposit and equity in the account. The traded volume is the volume of executed trades over the past 30 days.
  • For Forex commissions range from $35 per million USD per side, to $10 per million USD traded per side.
  • For other markets except Stocks, commissions range from $52.5 per million USD per side, to $15 per million USD per side.
  • Commissions are also charged for Stocks from 0.2 cents for US Stocks and from 0.1% of trade value for other markets.
  • By clicking on 'Commission Policy' under the 'Account' tab on JForex, the trader can see the commissions table and where they currently are (and what they need to do, to get a lower commission charge).

Islamic accounts

Swap-free account are available, which incur an additional commission of USD 5 per 1 million USD for currencies and USD 7.5 per 1 million USD for other markets.

Funding

Deposits can be made by wire transfer or debit and credit cards and bank guarantee. The maximum transaction for credit and debit cards is USD 5000, EUR 4000, GBP 3500, CHF 5000, AUD 5000, CAD 5000, SEK 35,000, NOK 35,000, DKK 30,000, JPY 500,000, RUB 250,000 and PLN 17000. Bank guarantee is for deposits from USD 100,000. Dukascopy does not charge a fee for deposits, but its partner bank does (1.2% for transactions in GBP and EUR, 2% for transactions in USD).

Regulation

Dukascopy EU is based and regulated in Latvia, in the European Union.

Summary

This broker provides, for a minimum deposit of $100, JForex 3 with over 500 individual markets and MT4 with 40+ markets. It offers ECN trading in the SWFX Marketplace and provides access to this Marketplace to the trader via JForex, on desktop, as a web trader and apps and MT4 on desktop and apps.

Pluses and minuses

  • Dukascopy offers JForex 3 and MT4
  • It has a competitive minimum deposit of $100
  • It provides access to liquidity pools
  • Dukascopy makes money only from the commission charge
  • It does not restrict trading styles
  • Dukascopy offers the same conditions and tools to all traders
  • It has a competitive commission charge
  • For an ECN broker it offers a relatively wide range of markets on JForex
  • JForex 3 and MT4 support both manual and automated trading

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