Pros / This is a well-regarded Swiss institution with the ability to support custodial banking services (segregated banking). It is an ECN-type broker with a reputation for transparency and fairness.
Cons / You can only use MetaTrader with this service with a third-party adaptation. In addition, Dukascopy does not accept U.S. clients.
Verdict / If you are an experienced forex trader looking for equal trading rights, transparent pricing and ECN liquidity, Dukascopy can satisfy your requirements. It can handle large volume trading, even up to two million USD in one click.
Editor's Note: This review has been removed from our side-by-side comparison because it no longer ranks as a top 10 product. The original review is below, but check out our current top 10 about Forex Brokers here.
Dukascopy, as Swiss banks are known for, is efficient, fair and supports client privacy. This forex broker is headquartered in Geneva and has representative offices in Honk Kong, Ukraine and Latvia, with offices soon opening in Malaysia and Russia. This well-reputed Swiss forex broker provides excellent client services globally. This ECN broker is a wise choice for experienced, large-volume traders and those who desire to manage forex trades using a custodial banking service utilizing another Swiss bank. Although this service allows a minimum first-time deposit of 100 USD (Dukascopy EU), rate incentives are more beneficial on higher-volume orders.
This foreign exchange broker strives for optimal transparency. Dukascopy provides the same price feed to everyone without exception and combines individual bids/offers of all SWFX market participants in one place. It also provides accurate information in terms of market liquidity and whether there is sufficient volume of liquidity available at any given moment. Dukascopy also has a good reputation for releasing funds in a timely manner.
Dukascopy Bank SA is a member of l'Association Romande des Intermédiaires Financiers (ARIF). It obtained a banking license with the Swiss Financial Market Supervisory Authority (FINMA) in the past few years. Dukascopy is a financial intermediary in compliance with Swiss regulations on money laundering. Dukascopy supports a large, global client base with clients trading from Dubai, Munich, Cairo and beyond. However, the company is not regulated by the U.S. Commodity Futures Trading Commission (CFTC) and does not accept U.S. citizens as clients.
Platform & Tools
Dukascopy is a low-price option for volume traders. With a net deposit of $10,000, you can trade for a commission price of $30 per one million currency pairs. In other words, you can trade 0.1 of a lot (10,000 currency pairs) for 30 cents. The more money you have deposited, the lower the commission prices are. Accounts with a net deposit of over $10,000,000 USD are only charged a $10 volume commission for one million currency pairs compared to the highest rate of $35 for accounts with a deposit of $5,000 USD. Dukascopy supports small spreads down to .1 pip, giving experienced volume traders more opportunity for profit. Dukascopy Bank SA only opens accounts with less than $5,000 USD for Swiss residents. Dukascopy Europe accepts new ECN accounts with a minimum deposit of $100 USD.
Because Dukascopy is a non-U.S. bank, it supports leverage transactions up to 100:1, provided you meet the bank's margin requirements. Dukascopy Europe offers leverages up to 200:1 (upon special request). In the United States, the U.S. Commodity Futures Trading Commission (CFTC) forces a limit of 50:1 leverage for major currency pairs. However, Dukascopy does not accept U.S. clients.
This powerful forex broker has a share capital of 22 million Swiss francs. It is part of the Swiss Foreign Exchange Marketplace and a member of ARIF (Association Romande Des Intermediaires Financiers). The FFA (Federal Finance Administration) regulates this forex broker, and its license is from FINMA (Swiss Financial Market Supervisory Authority). ARIF and the FFA work with their members to prevent money laundering.
A wire transfer is the quickest method of payment with Dukascopy. Nevertheless, you can also deposit funds by credit card (maximum $10,000 USD), bank guarantee (minimum $100,000 USD) or debit card (Maestro, Visa, Electron). It should be noted that conversion fees do apply if the base currency is other than CHF, EUR, USD or GBP. Dukascopy also supports Swiss custodian banking services with six banks, including Barclays, Merrill Lynch and Liechtensteinische. The minimum deposit size for this option is $250,000 USD.
Education & Support
Once you are ready to trade, Dukascopy provides many platforms to access the Swiss Forex Marketplace. Swiss Forex Trader for iPhones and Androids replicates quite a few of the features available on the larger platforms. The smartphone application supports placing orders. It also has analytical tools and news feeds. There is also a web platform.
If you are interested in automated trading or in building trading strategies based on Java applications, you'll want to use the JForex platform. JForex users rave about the platform because it provides a tool that lets you program your own forex trading platform by piecing together prefabricated application blocks. If you want to use MetaTrader from your PC, Dukascopy doesn't support it directly. However, there is a third-party application that will connect you from MetaTrader to the Swiss Forex Marketplace.
Though Dukascopy can support market dabblers, it is most suitable for experienced, high-volume traders. Better discounts, platforms and services are available to clients with account balances over $100,000 USD. For those who can easily manage volume trading, Dukascopy provides excellent client services and opportunities for active traders, hedge funds, banks and professional traders.