April 23, 2021


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Dukascopy Review 2020: Forex/Binary Broker review

10 min read

Dukascopy: Professional Broker for Demanding Traders
Dukascopy is an ECN broker, connecting customers to the SWFX marketplace, which combines the liquidity of the largest global liquidity networks. Even though traders can open a trading account starting at $100 minimum deposit, most traders who have experience with Dukascopy are advanced or professional users. The commission model in forex trading favors larger accounts. All customers have access to professional trading platforms including automated trading as well as a demo account.

Dukascopy Europe IBS AS is based in Riga, Latvia, and is a subsidiary of the Swiss Dukascopy Bank SA. The broker was founded in 2011, is regulated by the Latvian regulator FKTK and has a broker license.

Advantages and disadvantages in the Dukascopy review
Access to one of the world’s largest liquidity networks
Over 500 tradable underlyings available
CFDs traded on US equities and ETFs
Genuine ECN trading (identical for all traders)
Professional trading platforms including automated trading
Only $ 100 minimum deposit
Swiss Dukascopy Bank as the parent company

Dukascopy Europe is regulated in Latvia
The customer funds are hedged up to a maximum of $20,000

The market model is one of the most important plus points in the Dukascopy review. All customers have access to the SWFX Swiss FX Marketplace. It is a “centralized-decentralized” market model: Dukascopy brings together the liquidity of the world’s ten largest networks in a single marketplace.
For small investors, the Dukascopy review is only relevant because of the surprisingly low capital requirements: The minimum deposit is only $100. Retail investors who have had experience with (real) ECN brokers such as Dukascopy, however, also know about degressive commissions, which penalize small accounts and neutralize some of the cost advantages.
In contrast, there is no difference between large and small accounts in terms of access to trading platforms: all customers can choose between the JForex platform, which enables both manual and automated trading, as well as simplified web-based and mobile access. The only major weakness in the Dukascopy review is about the concerns of their regulatory environment. Unlike the parent company, Dukascopy Europe IBS AS is based in Riga, Latvia. Experience gained so far with the Latvian authorities is manageable; the customer funds are hedged to 90 percent and up to a maximum of 20,000 US Dollars.

The most important facts at a glance:
EU Headquarters and Regulation Dukascopy Europe IBS AS is headquartered in Riga; regulated by the Latvian regulatory authority FKTK
Minimum deposit of 100 US dollars
Multi-language Support: Yes [reachable via e-mail, telephone, post, fax or in person, additionally 24/7 chat is available]
Webinars, introductory seminars, webinars, video lessons, and written guides are available
Demo account Yes, free of charge and with a term of 14 days. On demand, can be longer.
Over 500 trading instruments, including Forex, CFDs, & Binary Options
1-click trading: Yes, possible.
Deposit bonus: Various bonus offers are available. It will depend on the net deposit, trading volume, and the capital
Platform/Mobile Trading: JForex, WebTrader, JForex Web 3 platform for live trading, external trading software and mobile applications
Spread for EUR/USD: Variable from 0.1 pips
Maximum leverage: 1: 300 for forex, 1:100 for CFDs
Hedging Allowed

1.) Dukascopy and the security
Dukascopy Europe IBS AS, headquartered in Riga, Latvia, is a wholly owned subsidiary of Dukascopy Bank SA, headquartered in the Swiss city of Geneva. The subsidiary covers the European market; Compared to the parent company, the minimum deposits required to open an account were reduced. There is a white label agreement between the parent company and the subsidiary.
The construction was realized in 2011 through the acquisition of an EU broker and its renaming. Dukascopy Europe IBS AS is regulated by the Latvian Financial Market Authority FKTK. Client funds are kept in segregated individual accounts and, in the event of bankruptcy, are protected by Latvian deposit insurance; per investor, this covers 90 percent of deposits, a maximum of $20,000.

Conclusion: Customers of Dukascopy Europe also enjoy a reliable regulatory environment and trustworthy deposit insurance: The regulation of the company is taken over by the Latvian Financial Market Authority FKTK, the deposit insurance is also under Latvian law and secures the customers’ capital by 90% up to a level of $20,000 before no-fault losses.

2.) Trading Conditions: How Expensive is Trading at Dukascopy?
The broker generates its income via commissions. The minimum deposit of $100 was set at near Cypriot levels, allowing traders with a lower budget and less trading experience access to the SWFX. The size of the commission depends, among other things, on the net deposit and trading volume. The assignment is based on the most favorable for the customer level. The commission amounts to at least one dollar per traded lot in the Forex trading. The commissions are thus in combination with the spreads also for small accounts a positive aspect in the Dukascopy valuation, even if large accounts – as well as with the competition – are favored. The spreads are extremely narrow and already starting at 0.1 pips: The average spread in EUR/USD, according to the broker, is usually only 0.2 pips.

The conditions in the CFD and Forex area, however, differ; traders can see the respective fees of the corresponding website. Since October 2017, the commission for equity CFDs has been at least $4 (or equivalent currency.)

Conclusion: At Dukascopy, the customer only incurs commissions, which he has to pay to the broker after paying the minimum deposit of USD 100 for opened trades. This is, depending on the net deposit of the customer, at least one US dollar/traded lot. Spreads for EUR/USD start at 0.1 pips.

3.) These financial products are available at Dukascopy
The platform has numerous currency pairs, two types of oil, and gold and silver. In total, traders can trade 12 index CFDs. Traders also have an even wider choice for CFD trading since June 2017: since then, Dukascopy has provided share CFDs from countries such as Switzerland, Austria, Belgium, and Norway – all in all, traders can choose some of the most liquid equity CFDs from different countries, and also CFDs on ETFs are part of the deal.

Conclusion: At Dukascopy, customers have numerous currency pairs available, as well as gold and silver, which is traded on the spot market. An additional offering of indices, stocks or commodities based on CFDs is also available from this broker.

4.) Does Dukascopy offer a free demo account?
Free and no-obligation demo accounts can be of use to both novice and experienced traders as they allow the novice to gain trading experience with a broker such as Dukascopy and venture the first steps in the trading business with virtual capital risk-free. However, professional traders benefit from the ability to test new trading strategies and scrutinize different trading platforms without investing real capital. Also at Dukascopy, the demo account is free and non-binding, but it is initially limited to a term of 14 days. On demand, the demo account can be extended indefinitely.

Conclusion: At Dukascopy, both novice and experienced traders can benefit from a demo account with virtual capital. This demo account is initially limited to a 14-day period, designed to allow traders to engage with the company’s trading platform. On request, however, support is also an indefinite term possible.
If you want to familiarize yourself with their trading platform, you can use the free demo account.

5.) Little extras for good customers
Many brokers use deposit, promotional, or new customer bonuses to attract customers, encourage them to open an account, or consolidate loyalty to existing customers. This is no different with Dukascopy, but the trader here expects a particularly wide range of different bonus offers, from which he can benefit in everyday trading: In addition to the capital bonus also includes a jubilee bonus, an advertising bonus, and the trading fee discount program.

Here is a short overview of all available bonus programs:
Capital Bonus
Here, customers receive a 10% bonus on their account balance, which they can apply for within 30 days of their last deposit. In order to receive the bonus, the customer must achieve a certain volume of trade within one year after the bonus has been credited.

Trade Fee Discount Program
With the Retail Discount Program, customers can receive a 20% discount on their trading fees; you can also claim the bonus up to 30 days after your last deposit. Again, the customer must implement a specific trading volume within one year of the bonus being credited.

Anniversary bonus
To celebrate the 10th anniversary of the online broker Dukascopy, the broker offers its customers a bonus of 100% of their account balance, which they can also apply for up to 30 days after their last deposit. Again, the customer must implement a specific trading volume within a year to be able to withdraw the bonus.

Traders receive the advertising bonus from Dukascopy if they recommend the company to their friends and they also open a live account with Dukascopy. In this case, the advertiser will receive a discount of $50 on his trading fees.

Conclusion: Dukascopy offers customers four different bonus models, including a 10% capital bonus, a 20% discount on trading fees, a 100% bonus on the balance, and an advertising bonus with a $50 discount on trading fees. In order to receive these bonuses, the customer must in principle implement a trading volume of a certain amount.

6.) Which platforms are available?
The broker offers several trading platforms to choose from. Jforex is a full-fledged trading platform that can be used for manual trading as well as for the import and development of automated trading systems (including backtest.) Here, a complete charting tool is integrated. In addition, the trading account can be reached via a web-based version as well as via optimized apps for various end devices. The mobile and web-based accesses are limited in their functional scope.

Dukascopy has introduced a new version of its flagship platform, JForex 3. In development, the broker has focused on improved performance and user experience, as well as a new design. Traders can also use a web-based trading platform for live trading at Dukascopy, the JForex Web 3 platform. This is reminiscent of the software JForex 3, so that broker customers are well cope. Traders can also open a free demo account to familiarize themselves with the platform and get a first impression.

Conclusion: At Dukascopy, customers expect various trading platforms. In addition to JForex for manual and automated trading, traders can find WebTrader and mobile trading apps for practical mobile trading via smartphones and tablets.

7.) The account opening explained step by step
With Dukascopym, it is not difficult to open a trading account as fast as possible and without any delays. To help inexperienced traders to open, here are the basic instructions, which should facilitate the account opening at Dukascopy. Basically, the whole process is not that difficult, as our overview proves:

  1. Customers need to register and complete an application.
  2. A copy of the ID card and a proof of address will then be sent to the broker (scanned documents will suffice, which can be sent to the broker by mail or uploaded to the server.)
  3. Now the account is opened.
  4. At best, customers can deposit their money after just a few hours and log in with the access data sent via email.

Now, the whole thing in a little more detail:
No documents have to be printed out or signed.
After the online form has been completed, the customer will receive a link to the contract documents via e-mail, which he signs online with the tick “I agree.”
Then the documents (ID + consumer invoice) are uploaded. Alternatively, these documents can also be uploaded through a dedicated app for smartphones and tablets, also available on the company’s website. If these documents have been accepted by the broker, the customer will receive an account number and other details, whereupon he can make his first deposit. In the last step, the customer now receives his access data by email, with which he can log in to his trading platform.

Conclusion: Opening an account is basically easy at Dukascopy. First of all, new customers must register with the company and fill in the opening application. Subsequently, a passport copy, or any other proof of identity document, and an address proof are sent to the broker. The account is opened in the fastest case after just a few hours.

8.) Support
The customer service is available by phone, by chat, and email and in multiple languages. Deposits to the trading account can be made by bank transfer and credit card.
Noteworthy in a positive sense is the wide range of seminars and webinars as well as the community; both help not only beginners, but also advanced, to gain additional experience and deepen expertise. Traders can also use the FAQ section on the website to learn about specific processes.

Conclusion: Dukascopy also offers customers a comprehensive service and support offering that includes multi-language customer support, which can be reached by phone, chat, and e-mail. Numerous seminars and webinars make it easier for beginners to trade via the Latvian online broker, as confirmed by our Dukascopy review.

9.) The most important tips for depositing on the trading account
Although Dukascopy has few deposit options available as it only allows transactions via bank transfer or credit card, there are some important tips customers should follow when making a deposit on Dukascopy’s trading account.

Tip 1
Pay attention to applicable fees! Bank deposits are free of charge on the merchant account, but credit card deposits may incur transaction fees of up to 2.5 per cent! About the deposit fees, the customer should inform himself in advance. Outgoing transfers are subject to a transaction fee, which is currency-related and amounts to ~10 USD per payment at Dukascopy. For deposits via credit card in the currencies Euro, British Pound, or Swiss Francs, the fee is 1.2 percent instead of 1.5 percent. All information can be found on the broker website.

Tip 2
Please note with regard to deposits by bank card on the trading account that a maximum of $4,000 can be paid per transaction; the number of transactions is not limited.

Tip 3
Pay with the right credit cards!
Deposits are only possible via bank and credit cards such as Maestro, Visa Electron, MasterCard, or Visa cards. If the customer has another credit card, they can either contact the company’s customer support or opt-in for bank transfer.

Conclusion: Traders should pay attention to three valuable tips when making their payment to the Dukascopy trading account: They should both ask about fees incurred by banks and credit card operators, pay attention to the maximum deposits with Dukascopy and, last but not least, check their credit card for the deposit Dukascopy trading account is suitable.

10.) Dukascopy media coverage
Dukascopy has good media coverage with market analysis and assessments. However, the broker itself has also been tested several times – so Dukascopy received several awards, including for its trading platforms.

Conclusion: The experts of Dukascopy are quite active in the media market analyzes and assessments and the broker has already received several awards, such as the available trading software.

Overall rating: 8.9/10

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