Opinion about Dukascopy

Dukascopy it is an online broker, or rather an online bank that offers broker services, with a good offer of investment possibilities. As it is not very well known in New Zealand, it is common for users who come across it to wonder if it is a scam. The truth is that it is not and that, on the contrary, it is an absolutely recommended financial services provider.

we present our analysis of this financial platform, which in our opinion has more than enough security guarantees to trust our money in one of its accounts. Here you can read about their investment offer, customer service and other details that will help you get an idea of what binary options investing is like on this website.

Our experience with Dukascopy

The truth is that Dukascopy far surpasses our methodology to analyze online brokers . The experience can only be positive, because from the interface of the website itself, to its complementary sections, passing of course through the pure and hard investment, they are excellent. As for security, this company is licensed as a bank in Switzerland and is regulated by the financial authority of this country. Therefore, in our opinion, an absolutely reliable entity.

Throughout this review, you will see that here you can investing in CFDs online and in binary options. Due to its popularity, the offer pays special attention to the forex market, but it also has stocks, indices and other underlying.

Is Dukascopy a scam?

The questions about whether we are facing a scam or a fraudulent website, are due to the fact that the name of this bank is not very well known in New Zealand. However, if we investigate the guarantees it offers us, we will soon realize that it is not a fraud.

The company was founded on November 2, 2004 in Genoa and is regulated by the Swiss Financial Market Supervisory Authority (FINMA). It has offices all over the world, specifically in Zürich, Riga, Kiev, Moscow, Kuala Lumpur and Hong Kong. As a curiosity, it should be noted that it has its own registered TV channel.

The fact of being a Swiss company with a license, means that the deposits of its customers are guaranteed by the government of the country, up to a maximum of 100,000 Swiss francs. For the most detailed, the Swiss protection system declares directly and without a doubt that the funds of non-resident foreigners are also covered. The coverage includes deposits made in any currency, but yes, the government will pay the corresponding equivalent in Swiss francs.

Another possibility to operate with them is to do so through Dukascopy Dollarpe, which is a subsidiary of the entity. It is based in Riga and although we think it is equally safe, it should be borne in mind that in that case the amount covered, by the compensation scheme in case of insolvency of the company, is only $ 20,000. The difference is that while Dukascopy Dollarpe accepts deposits of only $100, Dukascopy Bank only accepts deposits of $5,000 or more. In the case of opting for the Dollarpe branch, the license belongs to the Latvian Financial authority Financial and Capital Market Commission of Latvia, therefore it is a company that must meet the requirements of the MiFID directive.

Investment offer

With this bank you can invest in CFDs and binary options. In both cases, the amount of underlying is good when it comes to indices, stocks, commodities and forex. But it is not possible to invest in ETFs, something that for a service of the average quality that we have here would have been desirable.

In addition, there is an explanatory section on the different financial instruments, a television platform where you can watch investment-related news, a complete section with 22 tools to invest, where you can find an economic calendar, charts to carry out technical analysis on securities, a forex calculator so you can calculate the profits or losses of a hypothetical operation and much more. On the platform, which uses the JForex software, you can develop your own apps, to carry out automatic trading.

As you can see in the image, you can also open a demo account for a period of 14 days. The account will allow you to trade CFDs and will give you the option to activate a demo account for binary options. You can select a balance from 1,000 to 1,000,000 in the currency you want and start investing without risk to better know the possibilities that are on the platform.

In short, an entity that offers everything necessary for both amatNZD and professional traders.

CFDs

Through this broker you can invest in CFDs on oil: UK Brent and US Crude, 12 indices among which the IBEX 35, the Dollar Stoxx, the DAX, the CAC among the dollar and 34 German stocks stand out, but they do not include dollar stocks from anywhere else. Therefore, although the number of possibilities is decent, it is true that the offer is too focused on Germany, because this is the market that most interests its customers.

The fees for holding positions overnight depend on a formula they call trading activity. It will be the result of the trading volume, multiplied by 100 and divided by the trading volume plus the volume of overnight positions. The more trading activity, the better the conditions will be for the client.

Forex trading

As for the forex offer, it is undoubtedly the most complete. More than 100 currency pairs are offered that include all the important currency pairs and with which most New Zealand investors usually trade. Only traders who like exotic combinations may have trouble finding what they are looking for.

Limit orders can be placed and, of course, with stop loss. Commissions depend on the deposits made. The least advantageous would be $35 per million dollars in the operation. Usually the leverage is 1/100, but a leverage of 1/200 can be requested that the entity should study. The minimum margin required is 100 Swiss francs, but for operations that they consider more risky, the margins they work with range from 1 to 10%.

Binary options trading

As for binary options, you can carry out operations on underlying within the categories: stocks, indices and forex. Traditional binary options and option pairs are offered, in which what matters is the performance of the asset relative to another asset. The returns range from 50 to 70% for daily stock options and option pairs, and from 70% to 90% in traditional binary options trading.

They have no associated commissions and a minimum investment of only one dollar can be made, so it can be a good possibility for those who want to start trading with this instrument.

Welcome bonus

The broker has bonuses on offer regularly and in fact it is not necessary to be a new client to get it, because it is enough to make a deposit. However, the conditions to be able to withdraw the money are really hard and we don't think it's very interesting.

For your deposit you can get a 10% bonus. This means that if you enter $1000, they will give you $100. The problem is that to withdraw them you will have to trade a volume of 30,000 times your balance at the time of obtaining the bonus. Which in the example would mean operations worth NZD 33 million. It's just not interesting.

Dukascopy payment methods

In this section the entity is closer to a traditional bank than an online broker and therefore the payment methods are the traditional ones: bank transfer and credit or debit card. The minimum income must be $100. You can have an account in a large number of currencies, but commissions can vary from one to another. It is important that the details of your account or credit card exactly match the data on your identification document and the ones you use to register. Otherwise you could have a lot of problems due to security policies and identity verification.

Dukascopy Safety and regulations

Dukascopy is licensed both as a bank and as a securities broker. The FINMA license is obtained by demonstrating financial liquidity, sufficient organizational capacity to carry out the activities of the services offered safely, having a good reputation and sufficiently informing about the organizational structure of the company. In addition, the fact of obtaining the license implies that FINMA supervises the behavior of the entity, to promote the safety of its customers.

Swiss regulation obliges banks and financial intermediaries to keep records on all transactions. This ensures that entities cannot offer different prices to different customers. In other words, it is a guarantee that the price offered by the broker is not the result of the obvious conflict of interest that exists in cases such as binary options, where when you win, the entity loses. The realization of all CFD or binary options operations with this bank is carried out automatically, without the intervention of human personnel. The exception to this would be the possibility of investing by phone, but the operator is obliged to limit himself to entering the order as you have transmitted it to him.

If you opt for the Dukascopy Dollarpe branch, the application license will be from Latvia (Financial and Capital Market Commission of Latvia). It is registered at the address Lāčplēša iela 20a-1, Rīga, LV-1011, with the BIC JSSILV21XXX.

Customer service

You can communicate with the platform through traditional mail, email, fax or phone. You will have to do it in English, as they do not have a service in New Zealand. Although this may be a problem, it is compensated by the fact that customer support is available 24 hours a day. Although it is not easy to find, if you are not registered, it also has a live chat service. You will find it on the page that you will access when you try to open an account.

Functionality of the website

The website of this company is of high quality. Its investment platform allows the integration of APIs. In any case, it should be borne in mind that we are talking about a company that, as we have already said, has more in common with a traditional bank than with an online broker. Therefore, the aesthetics may be somewhat less attractive, but we can assure that it is 100% functional and intuitive. The same goes for the trading platform itself, although in this case it does have an absolutely Moderna attractive appearance.

Mobile application

The entity has an Android mobile app and iTunes. They can be downloaded from the official websites so that there is no doubt about the legitimacy of them. The price evolution graphs can be seen perfectly from the mobile with two large buttons, in green for the call and in red for the put, which leave no room for confusion. We will also be able to consult the economic calendar, the television channel, technical analysis and in short a large part of the functionalities of the web version.

Finding

A very good broker that guarantees us that it is not a scam thanks to its license in Switzerland. If you want to deposit less money, you can do this at its subsidiary in Riga. There is no danger of fraud because in the last case it is protected by the head of the group based in Genoa. The difference will be the amount of money you want to deposit and the leverage you want to assume when you carry out your operations.

The offer is excessively biased towards the German market, but if your main concern is to find a safe place to keep your money invested, our opinion is that this bank is an excellent place to do so.