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Inside forex – broker incentives

5 March 2015

DMA, STP, NDD – if you trade forex, you know the broker choice alphabet soup. Our take? Don’t miss the wood for trees: ignore acronyms and focus on incentives instead. (If you’re feeling like a more in depth session on this, our FXStreet Brokernomics webinar that’s gotten quite a few hits). Broker incentives You go long […]

The House Always Wins #1: Loss Aversion

2 March 2015

Scores of retail traders lose money systematically – i.e. strategies replicating exactly their opposite trades, offer guaranteed pay-offs, given a statistically speaking representative time horizon, and sufficient capital to withstand the occasional loss. The question is: how does this come about? The answer is a cornerstone of behavioral economics. To understand the mechanics in detail, please refer to a fantastic […]

Introducing Long Tail investing

24 February 2015

The most re-assuring lesson Darwinex founders have learnt is that traditional investment firms will never “steal” our concept. Reading would have saved us anxiety: smart innovators actively encourage start-ups to disclose everything… if it’s really an innovation people think you’re nuts! “Institutional” asset managers seem to agree: when they hear about DARWINs listing independent traders, two objections invariably come up: Retail […]

Inside Forex – MT4 and Interbank Liquidity

10 February 2015

A bit of background 10 years ago independent traders could not trade Interbank Liquidity. Just as ALCOA doesn’t sell aluminum by the gram, Goldman Sachs doesn’t make markets in micro-lots! But then, some smart Russian engineers realised: sure, GS won’t do it, but how about we: Observe the price at which GS and say, UBS, trade EURUSD […]

Inside Forex – Darwinex DMA explained

28 January 2015

As a trader, you can choose to place your bets with: A broker – who trades with you, against an independent 3rd party (“the market”). This is what Darwinex does and always will do. In brokerage jargon, brokers operate an A-Book A dealer – who trades against you and thus plays the role of “the market” A broker-dealer, […]

DARWIN instead of PAMM? – the trader view

27 December 2014

You already manage friends & family money via PAMM or MAMM schemes, and legitimately ask: DARWIN instead of PAMM? Granted – if you’ve traded for long enough, listing a DARWIN is hardly inventing the “managing investor capital / healthy leverage” wheel. Here’s our take: listing a DARWIN is fully compatible with managing capital elsewhere, because your listed DARWIN […]

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71 % of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.