Darwinex Zero: new subscription service – what is it and how it works?

Darwinex has been helping traders to attract investor capital for the last 11 years, and now our new offering, Darwinex Zero, builds on that success. Even for extremely talented traders, the evolution from trading as a hobby to serious revenue generation can be difficult if they don’t have adequate trading capital. Darwinex has always provided a solution to this, but now with Darwinex Zero, you don’t need any trading capital at all. In this article, you’ll see:

• Why Darwinex Zero – A letter from the founders
• What is Darwinex Zero
• What is a Virtual Trading Account
• Darwinex Zero Sign-up Process
• The Training Phase
• How traders attract capital in Darwinex Zero
  • DarwinIA SILVER: The first stage of the Seed Capital Allocation Programme
  • DarwinIA GOLD: The second stage of the Seed Capital Allocation Programme
  • Investor Capital
• Pricing

The reasons behind Darwinex Zero

Our clients know that innovation and evolution are in our DNA. Darwinex Zero was created to enhance our offering in areas where we believed we had room for improvement. We are convinced that D-Zero reinforces our vision and the ecosystem we have created over the years.

You can read more about the founders’ view here.

What is Darwinex Zero

Darwinex Zero (also referred to as D-Zero) is a monthly subscription service that enables traders to build their track record and raise investor capital from a virtual trading account, with zero risk. D-Zero provides you with a virtual trading account that you can use to attract investment to your trading strategy. If you generate a profit on those investments, you’ll receive 15% of that to reward you for your skills. That’s real money for you to withdraw and use as you choose.

Whats is a Virtual Trading Account?

Darwinex Zero virtual trading accounts have virtual funds and are hosted on a real server, simulating real market conditions such as latency and market depth. Darwinex Zero does not offer demo accounts as they don’t provide the real and professional environment we want our traders to develop in.

Darwinex Zero Sign-up Process

Because you’ll be trading with a virtual account, the sign-up process is more straightforward and quicker than applying for a standard brokerage account. You can click on any of the numerous ‘Get Started’ or ‘Sign up’ buttons on the Darwinex Zero website. They will bring you to the beginning of the registration process:

You’ll start by providing some personal details and next, you’ll choose the type of virtual trading account you’d like:

• Forex & CFDs on MT5
• Forex & CFDs on MT4

After choosing your account and checking the Terms & Conditions, you’ll need to fill out the complete form: The top half of the form asks for additional personal details, and you can enter your credit card details underneath:

After making the payment, verifying your D-Zero account, and setting your passwords, you will have already received your login and password details for your MetaTrader MT4 or MT5 account.

The Training Phase

Everyone starts their journey with D-Zero at what we call Stage 0: the ‘Training Stage’. During this phase, all you need to do is trade in your virtual account in the same way you’d normally trade. We’ll ask you to accrue a number of trading decisions over a minimum of 10 trading days, enabling our risk engine to analyse your trading style and perform an initial assessment of how you manage risk so that it can calibrate accordingly.

Basically, the trades you place in your signal account produce trading signals that are then analysed by the Darwinex risk engine. The engine then generates your DARWIN Index which is based on your trades, but with an adjusted level of risk, so that risk is comparable with all other DARWINs on the platform.

Even though at this stage your DARWIN isn’t yet created, you’ve already been allocated a 4-character DARWIN Ticker. This is unique to you and is what will be used to identify your DARWIN in the future.

You’ll be able to see your progress towards your DARWIN being created on this panel on the right:

Once both of these reach 100%, the training stage is complete and the risk engine has all the information it needs for your DARWIN Index to be created (bear in mind that there is a maximum of 90 days period for you to complete the training phase). We’ll just need you to give us permission to read and copy your trades which will then underpin your DARWIN Index. You’ll see this “Become a Signal Provider” panel appear on the platform:

To give us permission you need to click on “Accept Terms & Conditions” and then confirm that you have read and agree with them. Following this, your DARWIN will be created the following weekend.

Note that DARWINs only get created when all markets are closed and so this will happen on the first weekend after you meet the criteria, and then the DARWIN will become visible on that Monday. You’ll be able to see the status in the green countdown panel.

Following this, you’ll soon be participating in the first tier of the Capital Allocation Programme – DarwinIA SILVER

How traders attract capital in Darwinex Zero

Once you have your DARWIN, you’ll participate in our monthly Seed Capital Allocation Programme, DarwinIA, where traders participate to get capital allocations.

You can think of these allocations as Darwinex investing in you and your trading talent. If you manage to grow those allocations for us, by employing good solid trading decisions and risk management, you get to keep 15% of the profit you generate. DarwinIA has two tiers: DarwinIA SILVER and DarwinIA GOLD:

DarwinIA SILVER: The first stage of the Seed Capital Allocation Programme

In DarwinIA SILVER, allocations are determined by your “rating”. The higher the rating, the higher the ranking. There are 3 criteria that are assessed to calculate a DARWINs ‘Rating’:

• The current month’s return
• The return over the previous 5 months
• And lastly, the historic drawdown, also from the previous 5 months + the current month. If you don’t have a full five months, that’s fine, we’ll use whatever history is available since the inception of your DARWIN.

If your DARWIN meets the required rating, you’ll secure the minimal allocation (currently €25K). If in addition to the minimum rating, you perform better than the rest, you can receive bigger allocations (currently up to €250K). In this stage, allocations are committed for three months without additional conditions, and you can manage up to three allocations simultaneously as they are cumulative.

DarwinIA GOLD: The second stage of the Seed Capital Allocation Programme

As you build up your track record, and your DARWIN progress you’ll qualify for DarwinIA GOLD, giving you a chance to participate with other elite traders for higher allocations (currently up to €500K) and for a six month period. In the same manner, you’ll be able to manage up to six allocations simultaneously.

An additional benefit of the GOLD tier is that you can start to attract 3rd party capital from investors, which will help you increase your earning potential with 15% of the profits you generate for those investors.

Consult the website for the exact current criteria as these may change over time.

Investor Capital

Upon reaching DarwinIA GOLD, your DARWIN index opens to external investors. This means that investors can buy your DARWIN to replicate its underlying strategy. If you build a solid track record that investors can trust, you open a new door to leveraging capital beyond our seed capital allocation programme and therefore, limitlessly.

The top traders at Darwinex have already attracted millions and get hundreds of thousands of euros in performance fees. For example, the THA index currently has more than $21M under management and has earned over €500K in performance fees.

Pricing

Note that your first payment (the sign-up fee of €95) will be higher than the subsequent ongoing monthly subscription costs (€38 a month) and this gives you a number of things. Firstly, it provides you with your Darwinex Zero account, and your trading platform of choice, throughout the whole duration of your training stage. This usually takes about two and a half weeks but can sometimes be longer or shorter depending on the frequency of your trading.

But most importantly, this initial fee also pays for your first month’s participation in DarwinIA SILVER. Only after this, will we take a subsequent subscription payment, regardless of how long the training phase takes for you. The monthly subscription payments are cheaper than the initial sign-up fee and are always available for you to check on the pricing page of the Darwinex Zero website.

Thank you for taking the time to read about Darwinex Zero. We’re excited to bring it to you and can’t wait to hear your feedback!

Your Darwinex Team.