What is Dukascopy Bank?
Why is this Forex broker so well known?
Well, because it is one of the pioneering brokers in the world retail Forex market. But not only that, it is also one of the most emblematic brokers in that market.
Dukascopy is a broker well known to veterans of the markets.
Many of us remember those days when opening a Dukascopy account required $ 50,000.
It was held by a prime broker where only professionals and people with a lot of money operated.
Over time things have changed a bit but the Dukascopy brand is still there, today not only as a Forex and CFD broker but as a bank as well. And not just any bank but a Swiss one.
In this review I am going to explain the conditions of this broker and what are its strengths and weaknesses, in addition to the opinions that there are in the market about it, and finally my opinion.
Let’s start with its characteristics
- Country: Switzerland, Latvia
- Regulation: FINMA
- Minimum deposit: 1,000 USD; 100 Dukascopy Europe (Estonia).
- Deposit methods: transfer and card
- Platform: JForex, Web, mobile, and bridge for MT4
- Leverage: 100: 1 maximum at Duka Bank and 30: 1 in Europe
- Products: Forex and metals, CFDs, cryptocurrencies and binary options
- Spread: typical 0.2 EURUSD; 0.30 Gold; DAX 1.1, Binary Payout up to 90%.
- Commissions: from 35 to 10 USD per million
Dukascopy broker: a bit of history
This broker was born in 2004 in Geneva, Switzerland, almost immediately becoming the leading Forex broker in the Swiss market.
This fact gave him enormous prestige, since being located in that country is considered a plus in the business world. Switzerland represents seriousness and security. And that is what everyone wants when they are going to put money in a place.
With the passage of time, he acquired a banking license in Switzerland, with which he began to offer financial and credit products.
It also expanded its activity with the opening of several offices in different countries : Dubai, Kiev, Moscow, Riga, Tokyo and Hong Kong.
As we can see, it is a group with a very strong presence in the European and Asian markets.
Dukascopy’s main regulation is that of the Swiss state’s FINMA, one of the strictest in the world. In addition, being registered as a bank in that country is insured for an amount of 100,000 Swiss francs per customer, although this is restricted for main accounts of more than 100,000 dollars of deposit and bank account.
Dukascopy customer service
The Dukascopy broker has the best customer service on the market.
On the web we have the physical addresses of all its offices, starting with the headquarters in Geneva.
However, the easiest way to contact is through the different methods available:
- Chat 24 hours
- Message by form
- Callback request
- Main phone: + 41 22 799 4888
- Trading phone: +41 22 799 4848
- Fax: +41 22 799 4880
- Dukascopy Europe Telephone: +371 67399 000
Of course, we can find customer service in Spanish in any of the modalities.
We must highlight a very important detail.
Dukascopy offers services to Europe, Spain and Latin America through two companies :
- Dukascopy Bank Switzerland
- Dukascopy Europe IBS AS
The first entity is in Switzerland and requires a larger minimum account.
The second entity is in Latvia and requires a minimum account of € 100.
Basically, the first will be for the most professional accounts and the second for the smallest traders.
Although Dukascopy Europe is a subsidiary, it is still part of the Dukascopy Bank group, being protected by the parent company. It is also regulated by the FCMC of that country.
Another important Dukascopy subsidiary is Japan, from where the group offers services to the gigantic Japanese market.
Dukascopy minimum deposit and open account
The main difference between the two main subsidiaries is the issue of the minimum deposit . It is the following:
- Dukascopy Bank Switzerland: $ 1,000 or equivalent
- Dukascopy Europe: 100 USD or equivalent
The process is the same for either of the two portals.
We must fill in the data in the online form.
Then they will send us two emails where we will have to accept the contracts.
Dukascopy asks us for an extra identification step, which we will have to do through its Dukascopy Connect application on the mobile and requires us to verify by video.
Then we will have to prove our identity with our own document and an invoice from our residence.
The deposit methods are: card or transfer.
Dukascopy is one of the forex brokers with the most different currency possibilities to open an account: USD, CHF, EUR, GBP, JPY, CAD, AUD, DKK, HKD, MXN, NOK, NZD, PLN, RUB, SEK, SGD, TRY and ZAR. It shows that we are talking about a Swiss bank.
As always, before opening a real account we can always open a demo account to test how to trade on Dukascopy platforms.
Open a free demo account with Dukascopy Bank Risk warning
Dukascopy Bank Services
Well, this broker is one of the most complex and complete on the international scene.
In a few you will find such a wide range of services and products.
The main ones are the following:
- Forex broker
- CFD Broker
- Binary options broker
- Cryptocurrency broker
- Banking service
- Market information
- Dukascopy TV
- Dukascopy Community
Dukascopy trading tools
The list of trading tools is very long. Let’s see the main ones:
- Online graphics that we can use as widgets on our personal pages or websites
- Economic news widgets
- Dukascopy TV, where they report the latest news in the markets with videos and on a regular basis. However, the Spanish channel is no longer updated, only English.
- Confidence indicators. Page where we can see the consensus of Dukascopy clients on the different pairs and instruments.
- Daily highs and lows
- Average spreads. Very interesting page where we can see the cost per spread on Dukascopy’s assets
- Economic calendars
- Currency converter
- Position calculator
- TOC charts provided by the United States CFTC
- Studies of supports and resistance of assets
- SWFX Market. Where we can see the daily characteristics of each instrument, from the spread, to the high and low prices, and the confidence data
- Historical data sources. Here we can download the old price data of Dukascopy’s assets. Useful if we want to use it in automated trading
Dukascopy bonuses and promotions
Few brokers offer such a large and varied amount of promotions as Dukascopy Bank. Let’s see the main ones:
- Forex deposit bonus up to 10% during the first month of the account. There are volume operated conditions
- 20% discount bonus on commissions generated the first month of the account.
- Sharing experiences. This is a kind of social trading or copy trading in which those traders who share their operations and have benefits can earn money based on the number of followers they have.
- Live Forex Contest. He has a prize of 1,500 dollars in total, with 500 for the first classified
- Binary options contest. Similar to Forex but with $ 200 total prize and 50 for the first
- Strategy contest. This is available for automated trading accounts, even demo accounts. The total prize is $ 15,000 and the first receives $ 5,000.
- Fundamental analysis contest. This contest is based on prediction of fundamental news and macroeconomic data. The first prize is $ 500.
- Community prediction. Downloading the duka application on the mobile and making predictions in it, which must be daily and at least 10. The one who is most successful will win up to $ 500. The total prize to be distributed is $ 2,000.
- MissDukascopy contest
The Dukascopy bank is one of the services that attract more clients to open an account with this broker.
It is not a traditional bank but it does allow the opening of a bank account domiciled in Switzerland, and it also offers the possibility of acquiring a credit card and making currency exchanges online.
The bank profile is more of an investment type. In this sense, Dukascopy offers the PAMM investment program, where the broker manages the client’s capital.
However, it is not the typical PAMM system of other Forex brokers where managers are private clients.
In this case it is the sole management of Dukascopy.
At the time of this review, the average annual return for this program is 11.15%, with an average Sharpe Ratio of 1.11.
Dukascopy has several platforms for trading the different assets.
- JForex desktop
- JForex web
- JForex for iOS
- JForex for Android
- Metatrader 4
These platforms provide access to SWFX, the Swiss Foreign Exchange Market.
This is one of the few global Forex brokers that bet on their own platform in addition to Metatrader 4.
Some consider JForex to be even better than the famous Metaquotes tool.
Here we have a video explaining the functionality of the JForex platform:
Markets to invest
Dukascopy is a broker that offers trading and investment in a large number of tools:
- CFDs on stocks, indices, commodities
- Binary options
In this sense, highlight the offer of binary options. Many traders will find this a bit strange because they have been banned from Europe. However, Dukascopy is a Swiss broker and is therefore outside the scope of European ESMA regulations , which rather affects the countries of the European Union.
Therefore, Dukascopy may still offer binary options to international clients (EU Europeans are in theory banned).
Similarly, the leverage it offers does not have the limitations of ESMA. In this case you can trade Forex with a leverage of up to 100: 1.
However, this is only valid for Dukascopy Bank in Switzerland, while Dukascopy Europe cannot offer either binary options or leverage greater than 30: 1.
The main Dukascopy market is undoubtedly the Forex market, although we can also trade CFDs of the other indicated products from the same platform.
This is one of the world’s leading ECN-type brokers.
Basically we will be able to trade the main Forex pairs in the world and the vast majority of exotic pairs.
The minimum contract sizes offered by this broker are:
- 01 lots in Forex (1,000 units)
- 1 ounce gold
- 50 ounces silver
- 2 Bitcoins
- 1 Ethereum
- Nominal of the indices
- 20 copper contracts
- 10 natural gas
- 500 coffee
- 10 sugar
- 600 cotton
- 100 for the Bund, T-bond and Gilt
An important detail regarding equity CFD trading is that it offers leverage of up to 10: 1, higher than that offered by its European rivals under the ESMA umbrella (5: 1).
The markets they cover are the world’s leading stocks with the largest capitalizations, totaling several hundred of the world’s strongest stocks, including DAX30, Wall Street, FTSE and other European markets.
In the IBEX 35 it offers approximately the 15 largest shares.
Dukascopy spreads and commissions
»Let’s see some of the current average spreads on the most important markets:
Keep in mind that these spreads, especially those of Bitcoin, vary greatly with time and market conditions. We can expect great variations in the market.
Dukascopy binary options
First of all remember that binary options are only offered by Dukascopy Bank Switzerland and not Dukascopy Bank Europe.
This is one of the few global brokers that still offer binary options trading.
After the ban in 2018 in Europe, most brokers in this niche closed, but a few international brokers, including Dukascopy, decided to continue offering binary options. European regulation only affects EU countries.
The binary options trading offered by this broker is on 18 Forex pairs .
To trade in these instruments, you need to use the specific web binary trader platform.
In addition to being able to open a real account, Dukascopy provides us with the possibility of opening a free binary options demo account.
The operations will have a minimum duration of 3 minutes and a maximum of 24 hours. As we can see you cannot do swing trading or long-term operations.
The types of options are: Touch, Up / Down and Chain type options.
The typical payout it offers is between 70 and 90%.
This is a broker with many opinions in the different national and international forums. This is normal considering that it is one of the most veteran and popular brokers in the world Forex market.
Starting in Spain we can find up to 3 threads on the Rankia website .
In one of the threads they answer this:
“He is one of the old Forex rockers with a very good reputation in general, I looked at him a while ago and if you move really large amounts in Forex the commissions are competitive because they decrease as the lottery increases, but for someone who moves amounts small / medium was expensive ”
Stay with the detail because it is important and then I will explain it to you.
As we can see, it is not a really popular broker in Spain, where more shares and other similar markets are traded, but it is one of the brokers to consider when trading Forex.
Market veterans know him very well.
In another forum like X-trader we can find more threads, since it is more focused on short-term trading strategies.
The last thread is one from 2019 in which a client of more than 10 years ago had a problem with positions that he had for a long time. The truth is that it is a bit confusing and rare to see how someone can have open positions for so many years. Apparently there was a discrepancy between Dukascopy and the client when accepting the continuation of these positions.
If you want to see the rest of the threads, simply search for “dukascopy” in the search engine and you will find a large number of them.
In the tradingunited.com forum we can also find some threads, although most of them from years ago. In some of them they talk about Dukascopy comparing it with FXCM or LMax, some of the most important Forex brokers.
In the English forums is where we find more information. If you don’t know English just use an online translator. It is easy and you can find useful information.
In the Elitetrader forum we can find various opinions for many years. In fact we can find many threads of American traders from many years ago, before the NFA regulation made that country’s traders unable to open forex accounts with foreign brokers, like Dukascopy.
In some new threads where there is talk of the possibility of escaping the ESMA problem, Dukascopy is named.
We can also find a large number of threads in the Forex forum par excellence, Forex Factory .
The broker appears in numerous conversations constantly. In 2019 we have many references, for example, in a thread asking about recommended brokers for Canadian citizens (see the thread here )
In another of the world forex reference forums, Babypips, we found several threads referring to many questions.
The number of threads in 2019 is very large.
In one of them ( source ) they talk about Pepperstone, the well-known Australian broker. In this case, they suggest Dukascopy as a good alternative but point to the fact that Metatrader 4 is not the best option in that broker, but its own platform, JForex.
In the English forum Trade2win we also find many threads.
In some old ones they always put Dukascopy out as one of the ECN brokers to consider.
One of the last threads, in 2019, talks about the possibility of using Dukascopy data to do algorithmic trading tests.
As we can see, the amount of opinions on the English forums is very large.
In truth, this is one of the brokers with the largest number of them on the market. This is normal because it almost always comes out in most threads where they talk about the best Forex or ECN brokers.
Dukascopy has always had a good reputation.
My Review For Dukascopy
I think it is obvious that we are dealing with one of the most popular Forex brokers in the world .
I myself have used Dukascopy accounts in the past trying to perform scalping strategies. In which case I failed with them. It was not the fault of the broker but of the systems.
In fact, one of the reasons that makes more traders choose Dukascopy is to carry out scalping , something totally allowed by this broker, being one of the main options in this regard.
The problem with scalping is that it is very difficult to apply in reality with the numerous problems that exist in real trading, both psychological and operational.
Their page and website is one of the most complete and informative in the world of online brokers. So much so much information can be a bit overwhelming.
Dukascopy Bank has positioned itself as a different global broker. It offers things that many others cannot:
- Greater leverage than ESMA
- Binary options trading
- Broker who is also a bank in Switzerland
- Good conditions in Forex trading
- Chat for 24 hours
This makes the broker have a fairly strong position.
However, I think there are some things that could be improved.
For example, they have many things and services that I think are not entirely necessary and that can cost a lot in terms of opportunity cost. The Dukascopy TV thing, for example, I think they could already have it all on their YouTube channel, and I don’t think it necessary to give it much preference either. After all, these types of broker channels are not popular at all and are more of a filler than anything else.
Another detail to improve could be the commissions for low-volume traders at Dukascopy Bank. The broker gives more discounts to those who operate large volumes, but these are not many.
At Dukascopy Europe we can find a round turn commission of 7 dollars, not far from the 6 charged by other similar brokers. It is an affordable difference.
Another instrument where I think they could improve their conditions is in Bitcoin, where the last time I saw it they had a spread of $ 100, for 55 or 60 of many other competitors. I hope you can solve this soon.
On the other hand, it is necessary to highlight the difference in the offer of Dukascopy Bank and Europe.
What do we want, more or less leverage?
Do we have a thousand dollars to open an account or do we have less?
Do you want to trade binary options or not?
This will depend on what you want to do. You will have to decide what you think is best for you.
As for the index or raw material markets, it is fairly even with the best brokers in the sector in the world.
Is Dukascopy a safe broker?
I think the answer is pretty clear:
yes,It is one of the safest brokers in the entire Forex market.
Let’s see, the fact that they have acquired a banking license in Switzerland gives them a higher status.
For the broker to fail, there would have to be many circumstances and it would be something in which the Swiss Central Bank itself should intervene. Not very likely, by the way.
So whether we have an account at Dukascopy Europe or Dukascopy Bank Switzerland, I think it is not the broker we should be most concerned about its reliability.
It is not a perfect broker.
You probably have a lot of direct costs in the form of offices and personnel that have to be passed on to your trading, but that also makes you more serious on the other hand.