Are you considering Darwinex for your trading and investment needs? In this detailed review, we will delve into the unique features of this brokerage and provide insights into key aspects such as spreads, fees, leverage, and more. Discover whether Darwinex is the right fit for your trading journey.
Established in 2012 under the banner of Tradeslide Trading Tech Limited, Darwinex is headquartered in the financial hub of London. It operates under the strict supervision and regulation of the Financial Conduct Authority (FCA) in the United Kingdom. Over the years, Darwinex has witnessed impressive growth, boasting a team of more than 40 professionals serving a global clientele spanning 80 countries. In 2017, the brokerage experienced a significant surge in revenue, primarily attributed to the success of its proprietary asset, the DARWIN (Dynamic and Risk Weighted Investments).
Darwinex offers a diverse range of tradable assets, encompassing forex, indices, commodities, US stocks, and cryptocurrencies. You can access these markets through DMA (Direct Market Access) platforms like MT4 and MT5, as well as FIX API technology.
- DARWIN API: Developed by Darwinex Labs, this unique software enables copy-trading of DARWIN assets on the broker's proprietary marketplace, the DARWIN Exchange. The DARWIN API empowers investors to engage in algorithmic trading, backtest assets, employ trading robots, create custom statistical indicators, and access historical data.
- MetaTrader 4: For self-directed trading enthusiasts, Darwinex offers the robust MT4 platform, featuring advanced charting capabilities, automation tools, and access to a plethora of technical analysis indicators. It also supports algorithmic trading via expert advisors.
- MetaTrader 5: The MT5 platform, tailored for seasoned traders, provides an extended range of indicators, advanced order types, various execution modes, Depth of Market (DOM), and an economic calendar.
Algorithmic Trading Plugins
Darwinex goes the extra mile by offering supplementary libraries that enhance MetaTrader and FIX API platforms. These plugins allow traders to implement non-MQL strategies using languages like Python and Java. Additionally, features like Tick Data and VPS service are available to enhance your trading strategy.
Darwinex presents a selection of over 300 tradable instruments, including 41 forex pairs, 10 major indices such as the FTSE 100, over 230 US stocks from NASDAQ and NYSE exchanges, 5 cryptocurrencies (including Bitcoin and Ripple), and 4 commodities (gold, silver, natural gas, and crude oil). The company also provides HighFive Derivatives (HFDs), synthetic assets mirroring their provider's performance.
For self-directed traders, Darwinex offers competitive spreads, with live spreads around 0.3 pips for EUR/USD and 0.7 points for FTSE 100, among others. FX commissions stand at 2.5 currency units per contract order, while index commissions vary from 0.275 to 2.75 currency units. Stock trades incur a flat fee of 0.02 USD per contract, and swap rates apply to overnight positions.
For DARWIN investors, there's a 1.2% annual commission on invested equity and a 20% performance fee on profitable DARWINs. Providers receive 15% of performance fees, while Darwinex earns 5%.
Leverage ratios vary, with major forex pairs offering a maximum of 1:30, minor pairs up to 1:20, and commodities up to 1:10. Margin requirements for each instrument can be found on the company's website.
Darwinex provides a proprietary mobile app for investors to replicate traders or diversify their portfolios with DARWINS. Additionally, MetaTrader mobile apps cater to self-directed traders, offering advanced features and tools adapted for smartphones.
You can fund your account in EUR, USD, or GBP through bank transfer, bank cards, and e-payment services like Trustly and Skrill. The minimum deposit requirement (after the initial 500) is 100 currency units. Deposit methods have varying processing times.
Darwinex does not impose withdrawal fees but may pass on applicable costs to traders. Withdrawal methods include cards and Skrill, with a minimum withdrawal amount of 10 currency units. Bank transfer fees depend on the bank and processing times typically range from 1 to 3 business days.
Both MT4 and Darwinex platforms offer practice accounts, allowing traders to refine their strategies without risking real capital. Investor demo accounts are funded with a virtual $10,000 and have no expiry date.
Regulation and Security
Darwinex is regulated by the FCA and adheres to stringent standards, including negative balance protection and segregating client and investor funds. The company is also a member of the Financial Services Compensation Scheme, providing coverage up to £85,000 per claim.
Darwinex offers educational resources such as training videos, copy-trading research, a blog section (Darwinex Ideas), and a community forum for discussions on trading topics.
Darwinex offers live trading accounts for self-directed traders, investor accounts for DARWIN copy-traders, and professional accounts for eligible clients. The brokerage boasts tight spreads starting from 0.0 pips and commissions as low as $1.5 per order, with a 100% margin call threshold.
Trading hours vary depending on the asset class and MetaTrader server, with forex markets open from Sunday at 17:05 to Friday at 16:55 (NY time).
Customer support can be reached via email at email@example.com or through the contact number +44 20 3769 1554. Notably, live chat support is not currently available.
Pros and Cons
- Transparent fee structure
- Competitive spreads
- Compensation for successful traders
- Multiple trading platforms
- Segregated accounts
- No live chat support
- Not available for US residents due to regulatory restrictions
- Minimum initial deposit of $500
- Limited trading tools
In summary, Darwinex presents an appealing option for experienced traders, especially those interested in social copy trading and FIX API functionality. The brokerage offers competitive fees and a diverse range of assets. However, it may not be suitable for beginners due to the relatively high minimum deposit requirement. Before deciding, consider your trading preferences and goals to determine if Darwinex aligns with your needs.
Darwinex Broker Details
Disclaimer: - We at forexoverflow do not endorse neither refer anyone to trading broker websites. The information is for educational purpose and source of information is from the broker website.