Dukascopy Review 2023
Dukascopy is an online bank based in Switzerland. Besides conventional banking, the company has been offering retail forex trading services for over a decade. The firm is well-known for its advanced trading platform JForex, dynamic trading tools and in-depth market research. However, the company struggles to offer a rich product portfolio and the best customer support. In this piece, we discuss the broker in detail.
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Regulation and Security
Dukascopy is fully authorized and regulated in two tier-I jurisdictions, including Latvia and Japan.
- Latvia: Financial and Capital Market Commission of Latvia (FCMC)
- Japan: Financial Services Agency of Japan (JFSA)
Operating as a full-fledge bank and a brokerage firm, the company doesn’t compromise on security parameters. The firm employs advanced security protocols, such as SSL web encryption, two-step authentication and biometric logins.
Moreover, the company offers indemnity insurance based on a self-regulation agreement. According to the agreement, the company protects investors’ deposits of up to CHF 100,000 per client in Switzerland. European clients have the protection against a financial loss of up to EUR 20,000 if the bank becomes insolvent.
Negative Balance Protection
Dukascopy clients don’t incur negative balances in their accounts irrespective of the market conditions. That means there is a limit to your liabilities. The maximum amount you could lose is your capital and nothing beyond it.
The company keeps clients’ investments separated from its capital, ensuring clients have real-time access to their funds.
Is Dukascopy available worldwide?
Dukascopy is a part of Duckascopy Group, headquartered in Switzerland. The company facilitates clients in major parts of the world through its regulated subsidiaries;
- Dukascopy Europe IBS AS
- Dukascopy JAPAN K.K
However, the bank doesn’t accept clients from fewer jurisdictions, including but not limited to Iran, Japan, Myanmar, North Korea, Syria, Cuba, and the USA. We would recommend you to check your nation’s eligibility before signing up.
Dukascopy is knowledgeable in trading technology and gives its clients the resources they require to be successful. The company offers a custom-built ‘JForex’ and the industry’s most renowned trading platform MT4 across all channels, including web, desktop and mobile. Although some forex traders would choose MetaTrader 4 over a bespoke platform developed in-house, JForex 3 has shown to be the best in its class for 2020. Let’s quickly go through some features offered under each channel.
Online trading: Clients who prefer trading online can either use JForex web-based version or explore trading opportunities using the MT4 web terminal. The sleekly designed JForex web version looks somewhat similar to the MT4 web terminal, with various tools and features available to help clients trade seamlessly.
For instance, the market watch on the left side allows clients to access real-time price quotes for different tradable assets. Beneath the market watch, there is a dialogue box for investors to define their trading preferences, such as order types and risk management (slippage, stop loss, etc.). On the right side, clients can open up to four charts simultaneously. Below the charting options is a summary window displaying the number of positions with time stamps. Overall, the online trading experience with Dukascopy seems satisfying.
Desktop trading: The JForex 3 desktop trading platform comes with many trading tools and is simple to operate. With 20+ drawing tools and 250+ technical indicators, it offers excellent grounds for technical traders to analyze the market in-depth. Additionally, the possibility of importing custom indicators is mesmerizing. However, it is essential to point out that the desktop chart zooming experience isn’t seamless compared to the web version. Notably, clients might prefer using Dukascopy JForex dues to its algorithmic trading option customization with indicators.
Further, the VPN service allows them to run their trading systems around the clock. Clients can use the cancel all trades button to revoke all orders immediately, but it is only accessible through the application programming interface (API). Although some forex traders would choose MetaTrader 4 over a bespoke platform developed in-house, JForex 3 has shown to be the best in its class for 2020.
Mobile trading: Dukascopy facilitates on-the-go clients with its custom-built mobile trading app Jforex. However, the company also allow traders to download the MT4/MT5 mobile-based platforms on their mobile phones and tablets. The proprietary mobile trading app has advanced capabilities, such as level-two quotations and multiple order types. Also, the app’s built-in repository tactics allow traders to select strategies well suited to their trading needs.
The JForex smartphone app’s research tools are outstanding. Clients can use the pre-defined panels and the customizable display of marker movers to fit four-time frames, i-e, H1, D1, W1, and M1. The pattern recognition tool for exchanging ideas is also accessible through the mobile trading app. With its simple design and powerful features, the company’s in-house-built mobile trading app will likely attract clients more than the industry standards MT4/MT5 mobile platforms.
Dukascopy offers only one account type for FX trading, and the execution mode can be either agency or dealing desk. For all ECN accounts, the spreads are the same, but the company charges additional commission depending upon clients’ traded volume, account balance and net deposits.
Dukascopy’s signup procedure is simple though a little lengthier. The bank asks for multiple documents for ID verification and needs you to confirm your address before allowing you to get started. You can use your National ID Card, Driver’s license, or Passport for ID verification. Moreover, a bank statement or a utility bill will work fine for address confirmation. You can follow the given below steps to complete your registration with Dukascopy.
- Provide your details on the signup page, such as email ID, prefered account type, etc.
- Complete the KYC process by uploading supporting documents to verify your ID and address and provide details about your employment and income.
- Select your prefered trading platform and account’s base currency and accept terms and conditions.
The whole signup process could take 2-3 working days or more. Once your account is successfully verified, you are good to add funds to your account and start placing trades immediately.
Clients can only access the company’s dashboard after having their accounts verified. Keeping things simple, the broker doesn’t offer too many options on the dashboard to explore. While the setting option enables you to configure your account, users can refine their trading parameters using the avatar icon displayed on the top right corner of the dashboard. The’ My Account’ button lets clients switch between live and demo accounts.
Deposit and Withdrawals
Dukascopy supports multiple payment methods for deposits and withdrawals, including debit cards, credit cards, Skrill, Neteller, bank wire, and cryptocurrencies.
The minimum deposit to open an account with Dukascopy is $100 for European clients. The rest of the world may get started with the company for a deposit of $1000. Clients can fund their account with a maximum of $100,000 a month while there is no set limit for minimum or maximum withdrawals.
Deposits made via debit or credit cards instantly reflect in your account, while bank transfers may take several days to process. The lead time for e-Wallets payments and cryptocurrencies is 24 hours.
The company facilitates withdrawal requests via the same methods used for deposits. All withdrawals are typically processed on the same day, except for wire transfers that may take a little longer. If you’re looking to invest in Dukascopy, you must analyze their withdrawal policy to avoid any monetary fraud.
Dukascopy product portfolio does not include a vast selection of financial instruments. Despite this, it offers access to a considerable variety of tradable assets that can be bought and sold. For instance, customers can trade more than 60+ currency pairs and access 19+ stock indices, 6+ commodities, and 3+ bond types.
In addition, the bank gives customers access to its own cryptocurrency (Dukascoin – DUK) besides other major digital currencies. Customers have the choice to either purchase them or trade them via CFD contracts.
Binary options trading is also accessible via the Dukascopy platform enabling traders to make quick profits from small shifts in prices. Binary options operate somewhat similar to CFDs but with increased payout ratios and reduced holding periods. Notably, the company supports only 18 currency pairs for binary options trading.
Not to mention, the product selection is also different based on the country where the customer resides. For instance, clients in the UK cannot trade cryptocurrency CFDs amid FCA bans on trading crypto derivatives.
Commissions and Fees
Dukascopy trading costs and charges are significantly lower than those of its competitors. However, its non-trading pricing structure might appear more significant to some traders. For instance, the company doesn’t charge any fee on deposits via bank transfers. However, a deposit fee of 1% to 2.5% applies to card deposits and e-wallet payments. Clients must also pay a withdrawal fee depending on their selected payment method. The company also employs a 0.5% currency conversion fee and charges CHF 500 inactivity fees from dormant customers.
Regarding trading costs, the fee depends on the deal’s volume and the type of underlying financial instrument. While the company charges an average spread of 0.6 pips on major currency pairs like EUR/USD in the standard account, clients can trade individual stocks, indices, or CFDs for a commission of 0.10% w.r.t the position’s value. The trading spreads can vary significantly based on currency pairs; click here to find more details regarding spread on forex. Further, the broker charges a standard cost of $0.5 for every 1 MT4 lot traded, amounting to $5 for each $1 million transacted.
Leverage refers to margin-based trading where clients borrow funds from their respective brokers to open large positions for a marginal investment. While the company offers maximum leverage of up to 1:100 for trading FX pairs, clients can trade precious metals using a leverage of up to 1:50. On the other hand, CFDs on Stocks, commodities, and indices are available for maximum leverage of up to 1:30.
It is worth mentioning that leverage carries excessive risk exposure. While it maximizes your profit-making potential, it also magnifies the risk of loss. It can be detrimental in a high-moving market, especially if you are new to trading.
Analysis and Education
Dukascopy provides its clients with exceptional research and educational resources. Thanks to the expansive collection of research tools offered by the JForex3 trading platform, which is accessible via desktop, online, and mobile devices.
While live news streaming from Marketpulse and Reuters helps clients stay updated on market movements, the economic calendar lets clients track upcoming major economic events. Technical pattern analysis and market sentiment indicators enhance clients’ charting experience.
Located in Geneva, Dukascopy TV studio transmits news and market analysis from in-house correspondents. The broadcast holds relevant and insightful information for both newbies and professional clients. Although there are enough research and educational resources, we believe a glossary section would have been a super addition to its academic library.
After contacting Dukascopy through phone, email, or live chat, we weren’t much excited about our interactions with this broker. The average response time for phone calls is 3 minutes. However, the company facilitates clients via live chat instantly. Correspondence via emails can take a couple of days. Clients can also reach the company on social media channels like Twitter, Facebook, and Youtube.
Tel: +41 (22) 799 48 38
+41 (22) 799 48 48
Reputation amongst Traders
Unfortunately, Dukascopy is among the few underrated brokers we’ve reviewed. Surprisingly, about 77% of the people reported this broker unsatisfactory on the Trustpilot. Only 15% of clients believe it to be a good choice for trading forex and CFDs. About 8% of clients remain neutral concerning their experience with the company.
The company has housed several prestigious awards in recognition of its services over the years.
- Best ECN Broker for Beginners 2021 Awards by Brokers Tested
- Best Bank Broker 2020 Awards by Traders Union
- Best FXResearch 2020 Awards by Technical Analysts UK
- Best Technical and Analysis Platform 2020 Awards by Technical Analysts UK
- Best ECN/STP Broker 2018 Awards by London Forex Show
Can beginners trade with Dukascopy?
Although Dukascopy offers excellent educational material with enough research tools to help clients learn and grow, the company’s trading platform can still appear confusing for newbies. However, there is an option of a virtually funded demo account that beginners can use to practice their trading skills and become proficient before committing their real funds with Duckascopy.
Dukascopy has been in the business for over one and a half decades. Its robust regulatory framework, advanced trading platforms, excellent research and educational resources make it a competitive choice for skilled professionals. However, the company costing structure isn’t appealing, which can become a limiting factor for clients looking for a budgeted trading experience.