The Dukascopy project started back in 1998 under the tutelage of Dukascopy Bank SA, located at Route de Pre-Bois 20, ICC, Entrance H,1215 Geneva 15, Switzerland. Their European branch is Dukascopy Europe IBS AS, located at Lacplesa iela 20a-1, Riga, LV-1011, Latvia. The latter is an EU licensed investment brokerage company, which is 100% owned by Swiss Forex bank Dukascopy Bank SA. What is very important to note that we are dealing with a Swiss Bank, regulated by FINMA (Swiss Financial Market Supervisory Authority). The Swiss banking system is known to be the most solid in the world, so dealing with Dukascopy should be way safer than dealing with any CySEC regulated brokerage.
Is Dukascopy a Scam?
I sit in front of my laptop thinking how to answer this question in a professional manner. The first answers that come to mind are “LOL, are you kidding me?” and “Whaaat? How can you even think Dukascopy is a Scam?” but those are not very professional so I will try harder. We are talking about a company that has its roots back in 1998 (that’s another millennium, guys) and also about a Swiss Bank with all the required credentials so I believe it’s safe to say Dukascopy is not a Scam.
Editor’s Note – Why Dukascopy Doesn’t Suck In 50 Words?
I’ve been complaining about binary brokers looking the same, using the same old slogans like We Are The Leaders Of The Industry and then failing to show even an ounce of professionalism. This all stops when it comes to Dukascopy because in this case we are dealing with one of the giants of the industry – and I am not only referring to the binary world, but the trading world in general.
Why Dukascopy Sucks In 50 Words?
This is a big institution, with several branches and sometimes with complicated procedures. This means that things are not as straightforward as they are with, say, a SpotOption brand. I’ve had to spend a lot of time to understand all the structure and get all the information and this means they suck at user friendliness but don’t worry, it’s not a deal breaker.
Should I Open an Account with Dukascopy?
When it comes to the trading platform, it’s clear right away that we are dealing with a professional financial institution, not a slot machine provider. The star of the show is the chart, which is big, clear and shows candlesticks, bars or lines. Technical indicators can be used, time frames can be changed and overall it gives you the possibility to conduct proper technical analysis. Of course, the platform is more complicated than what most binary options traders are used to, but with a little bit of practice, it becomes easy to use (read full platform review here). And speaking of practice, they offer a free demo account – free as in you don’t have to deposit to get it.
All is great so far but there has to be a downside, right? Well, their minimum deposit is 5,000 USD and I’d say that’s a major disadvantage because most binary options traders are not willing to invest such a sum. Then again, if I think about all the stories where a client wants to invest 250 bucks and due to the pressure of the broker, deposits 10K total, just to lose it all because his/her account was traded into the ground by the account manager… maybe depositing 5K right from the start with a Swiss Bank is better. However, if you don’t have 5K, don’t despair because there’s hope: according to their rules, “The minimum deposit size in Dukascopy Bank SA is 5,000 USD, while in Dukascopy Europe you can open an account with 100 USD”. In other words, if you are from Europe, you can open an account with as little as 100 bucks; the rest of the world has to cough up 5K. If you are a client of a regular binary options brokerage – the “leaders”, the ones with the simplistic and limited platforms – you might think that using Dukascopy is more complicated because their platform is different and has more features. It’s not! Sure, it will take you longer to get used to it but I believe the extra effort is well worth.
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There’s an old saying that goes something like this: Who doesn’t work doesn’t make mistakes. If your client base is huge, surely some complaints will surface and this is also the case with Dukascopy. There are some complaints online but these are mostly aimed towards their Forex platform which according to some, can be a bit clunky and freezes at times. So far binary options traders that have used Dukascopy didn’t have major complaints.
The Bonus is 100% of the deposited amount and while under normal circumstances I would recommend to say away, this time I am not doing that. Here’s why: 1). You will receive the Bonus only if you specifically ask for it. 2). The Bonus will be added only after the turnover requirements are met (pending bonus structure). 3). The client CAN withdraw at any time but this will cancel the Bonus. In other words, you are not tied to the platform and this bonus is not a black hole for your money. However, the required volume is 40 times the bonus amount, which is pretty high, but you have one year to achieve it so there’s plenty of time.
To withdraw you will have to fill a form and then wait 1 to 3 days for the transaction to complete. Of course it’s faster than with other brokers (they are a bank after all) but more importantly, it’s safer. Also, there are no minimum withdrawal amounts so you can take out whatever you feel like.
Putting aside professionalism, charts, technical indicators and the fact that they are one of the biggest brokers on the globe, Dukascopy offers tons of contests, ranging from the Most Profitable Trader of The Year to Fashion to Miss Dukascopy 2016. I understand the trading contest, but the fashion and beauty pageant, not so much. Well, different strokes for different folks.
User Friendly 15/20
I have to admit that the entire website is kind of hard to navigate but this is mostly due to the huge amount of information available. It is well structured but it will take you a while to find what you are looking for. The platform is more difficult to use than a regular binary options platform, especially for a green trader.
Number of assets and expiry times 17/20
With Dukascopy you have the opportunity to trade more than 1,500 Daily Stock Options, currency pairs and indices. They also offer pair options but these are a bit different than you might be used to: the trader has to predict the performance of a stock against the index that it is part of. For example, BMW is part of German DAX. If by the end of the day BMW outperforms the DAX and the trader predicted that scenario, the trade ends up In The Money. Expiries for Up/Down options go up to the end of the day (in 1 minute increments) while Daily Stock Options have a fixed expiry duration of one full trading session.
Commissions, Support and Effective return 16/20
Dukascopy does not charge a fee for transactions, however their partner bank charges a 2.0% – 2.5% fee, depending on the currency of the transaction. Support is quick to answer and helpful; you won’t get any pressure from them to deposit and the information given is accurate. The effective return ranges from 70% to 90% and the client has the opportunity to choose a lower payout in exchange for a higher refund.
Deposit, Payment and Bonus 16/20
The minimum deposit for Europeans is 100 USD while for the rest of the world is 5,000 USD. Payments can be made through the majority of credit and debit cards and wire transfers but unfortunately no e-wallets are accepted. Withdrawals take up to 3 business days to appear in your account while deposits appear in 1 day. The Bonus goes up to 100% but you can withdraw at any time before the 40 times turnover is reached (however, this will cancel the bonus).
Website Extras 17/20
Apart from the things already mentioned above, Dukascopy offers the Pending Option. Traders can place pending entry orders that will be executed at a specific time and date but not further than the end of the current week.
Dukascopy Overall Rating (81) + Regulated (+3) = 84/100
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