Forex Trade

Dukascopy Review by Vassilis

[In this review, one of our members, Vassilis, shares his experience with the broker Dukascopy. Vassilis (AKA Capsmart) is one of the resident Forex experts in our Forum.]

Dukascopy Review

Dukascopy Review

This is a Swiss broker. It is more than a broker. It is a bank. You can have a saving account and use web banking to pay your bills. It was my dream when I started trading. At the time to open an account with Dukas you needed at least 50.000 dollars and the spreads varied according to the account size.

With 250,000 or more you get the best possible commissions. Competition did it again and Dukas will accept much smaller accounts now (5,000 is the minimum). Since I had this opportunity I could not refuse it. The paperwork takes a little bit longer but nothing extraordinary.

My Dukascopy Experience

The platform is a custom java platform that offers lots of indicators and adjustable time frames. They also provide P&F charts in case you like them and a kind of volume information, Level II style is available but it moves so fast that you cannot really use it.

Entering the platform is a pain. No way to remember your password that you have to type it every time, plus a non-readable field, like the ones we use when registering in sites with words that you have to type but are hard to read. Dukas uses numbers instead of  letters but it is hard to distinguish a 3 from an 8.

I did not face any problems with re-quotes. Execution is fast and spreads are ok for the majors. Since it is not a metatrader broker you cannot use the EA’s but some systems have been developed for them. They provide a toolbox that (if you are a programmer) you could use to open and close trades without using their platform (not advisable). A forum provides solutions and some extra indicators are created from time to time by experienced traders. Well to be honest, competition did it once again and they provide a metatrader bridge but I would not suggest it. If you want to use Dukascopy you better learn to use JForex (their own platform).

They run contests (on demo accounts) every month and the winner gets a 5,000 dollars prize and a free trip to Geneva. Only manual trading is allowed. Starting amount is 100,000. For this month 1,064 are competing. The worst has 140 dollars in his account and the best 540,000

Plenty of info is available at their site if you like fundamental analysis or want to know what the big boys have to say about the markets. Dukascopy TV is also available if you prefer to have a pretty face reading for you what you usually find at forex factory.

Dukascopy – Conclusion

So if you look for a broker that is solid as a bank Dukas is your choice. You will have to learn their platform and it will not be easy to have robots trading for you.

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[In this review, one of our members, Alex, shares his experience with the broker Dukascopy. Alex (AKA Raa) is one of the resident Forex experts in our Forum.]

Dukascopy Review by Alex

Many of you know about this prominent Swiss broker. Recently, besides being a regulated Swiss FX broker, Dukascopy has became a Bank, by obtaining a banking license. Well, from a security of funds prospect it can hardly go any better, since all Swiss commercial banks are following strict banking regulation of Switzerland. So now it means not only you can trade with Dukascopy but also you can open an account directly with them and have your funds right there (it can be expensive though).

My Dukascopy Experience

Dukascopy has been notorious for a complicated opening process, however, in my experience it has been eased a lot lately. You need all your normal documentation, such as address verification, signed application and a notarized copy of passport, but it has to be sent to Dukascopy by a physical post. In my case it took only 1 day (from Czech Republic to Switzerland using ordinary post), and next day my account was open. It was faster than some “easygoing” brokers that don’t require much documentation but then don’t rush too much.

Deposit is done with a wire transfer, however, a new division of Dukascopy called Dukascopy Europe now allows credit card deposits, however at rather high cost. In any case, a minimal deposit now is just 1,000 USD or equivalent, so the entry is on par with most brokers out there.

So really it takes only 3-4 days to get your account open including a paperwork and a wire transfer deposit. If you live in Europe, at least. As far as I know, Dukascopy is not accepting US clients any more like many other brokers, due to US regulations and applied force.

Dukascopy offers you trading with 3 trading platforms: Java, JForex (also a java client), and Web. First and second are almost the same offering different layout, where Java is suited more for manual trading, and JForex for both manual with using technical analysis and algorithmic. Web one is good to use on the go.

Dukascopy has been experimenting with MT4 a while ago but finally dropped it. However, where Dukascopy has dropped, a company called Fair Trading Technologies picked up and now offers a fully-functional MT4 bridge to Dukascopy. FTT is being renumerated for its services with an additional fee you will have to agree to and post a limited power of attorney to Dukascopy. Currently this fee was lowered and stands as 10 USD per million traded. For currency pairs with quote currency being USD, it accounts to 0.2 pips per order (open and close).

Dukascopy itself is being renumerated in fees as well. If you are looking to open a small account and trade longer term shooting for 50 pips or more, it should not really bother you, however if you aim is scalping doing many transactions with a few pips profit, then it can be a show stopper. Dukascopy offers a progressive fee schedule based on a deposit size and volume traded per month:

==>  http://www.dukascopy.com/swiss/english/forex/forex_trading_accounts/commission-policy/

For small accounts fees can be quite substantial, as 48 USD per million will transform for example for 1 lot traded on EURUSD into 48*2*0.1*1.3 = 12.48 USD, or 1.25 pips. You may notice I use 2 as multiplier because volume of transaction consists of first opening a trade( for example buying EURUSD) and then closing a trade (selling EURUSD), and since we are buying and later selling 100,000 of euros, we are in fact transacting 130,000 USD each time (roughly) since volume is calculated in dollars.

If you are planning to use MT4 with FTT, then you have to add 10 USD per million for them, resulting for a small account into 1.5 pips commission.

However if you are about to invest 50,000 usd or equivalent then you are standing a commission of 18 USD per million, so for our example you will pay 18*2*0.1*1.3 = 0.468 or just 0.47 pips. With MT4 it will be around 0.65 pips.

Good news is you can open an account with Aslan Group, and receive a nice rebate of 33% of the commission back. Dukascopy pays rebates directly into your account so no need to worry about PayPal. This rebate does not apply to FTT comissions, but still it can be a nice option.

If you plan to use the renowned Million Dollars Pips EA  with Dukascopy via FTT, I shall worn you it does not work very well. While FTT MT4 is actually rather fast (faster than most brokers with native MT4), the way Dukascopy delivers its price feed (via FIX protocol that is notorious for bad backfilling) results in a lot of small chart gaps that influence MDP performance. I was running a live test with FTT/Dukascopy for about a month and found it unsatisfactory, as exactly the same configuration applied on other brokers with similar latency delivered much better results while Dukascopy result was negative.

Dukascopy – Conclusion

All that said, if you trade manually you will find JForex a relatively good platform to use (maybe slow on backfilling and few glitches here and there but still fast fills and much better for scalping than MT4), supporting many technical studies, and alternative charts like Renko, Range bars, Point and Figure, Heikin-Ashi.

Customer service is just fantastic, you will be assigned with a personal manager who will promptly assist you with your queries. Phone dealing is secure, just as a Java/JForex platform, that requires 2-factor authentication.

I personally like Dukascopy and feel safe with it, however due to my developments currently being tied to MT4 I am not using it at the moment, but I plan to re-develop my tools and strategies for JForex and move to Dukascopy.

There are few other brokers I feel as confident with as with Dukascopy and I will write later about them.

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We hope you enjoyed this review of Dukascopy

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