Why Darwinex will change the forex industry forever.

Before you read this blog post, I would like to invite you to take a look at Darwinex to see everything for yourself. This is my invitation for every forex trader that is talented and is looking for a way to live of his trading.

If by reading the title of this post you get the idea this will be a declaration of love to my broker, you are right, because it turned out to be one. Why dedicate an entire blog post just to please a broker? Well, most will agree that the internet is full of scam broker warnings, people complaining about their broker ripping them off,… That is the reason I think it would be appropriate to spread the word about those brokers who actually give the service they promise and stick their neck out for their clients. My broker is one of the few that, in my opinion, truly deserves it.

Darwinex is a broker, established in 2012. My story with them also starts around that time. In those days I was already trading currencies for a while, and I was making a consistent return. But some percentages on a few thousand dollars just don’t really make you a living. So I was searching for a way to maximise the profit of my trading strategy. Professional traders will agree there is only one safe way: backing your strategy with investors’ capital. So I started searching the internet for forex trader jobs, social trading platforms,…

After browsing for a while, my eye fell on a project called Tradeslide. At first sight, they had a pretty fancy website and their promovideo really got my attention. Basically it was telling exactly what I needed. They offered a way to certify my trading skills and the possibility to prove investors my strategy was worth their capital. I send them an e-mail I was interested to hear more about it and almost immediately they came back with an invitation to have a conversation at Skype. The story I was told in that conversation, the power of their arguments, the ideas, basically the entire project,… almost immediately convinced me: these guys really mean it. Soon it became clear that there was a young team of motivated people behind it who only had one common goal: break up the existing retail forex trading business and create a unique platform that empowers those traders who really deserve it.

So what is it that makes them stand out from thousands of other brokers?

The launch of their broker Darwinex was the next step in the journey. I can almost hear you think: ok, a broker can have an excellent client service, offer great execution with outstanding low commisions / spreads, but what else can there be? In this case: the business model. Darwinex has been introduced to the public as a profit exchange. It means that traders can trade currencies and indices with them as with any other broker (with excellent execution and most of the times, low and variable spreads). Ok, that’s like many other brokers in the business. But at that point Darwinex takes it to the next level. They offer traders the possibility to transform their strategy (all the trades they open and close in their own live trading account) into an asset called a ‘DARWIN’. This asset is put on an exchange with all the other DARWIN’s. Darwinex measures every DARWIN on several investable attributes (experience, consistency, risk management, timing and performance). All these DARWIN’s are offered for sale to investors on this exchange. It means investors can buy any DARWIN and add it to their portfolio, just like with stocks, bonds,… On top of that, Darwinex has a monthly contest where they distribute a certain amount of cash (€ 550.000 at this moment) amongst their best traders.

So, this is just another social trading platform?

Aaaaand, it’s not :). Perhaps there are three big differences with other platforms:

  1. The way Darwinex compensates its traders for offering their strategy on the exchange. Traders don’t get paid based on the investors’ volume behind the trade or the amount of traders, but only a percentage on the money they make for them. This diminishes the chance of traders ‘over-trading’ just to increase their revenue.
  2. Underlying trades are not disclosed to anyone. This means that traders’ intellectual property stays protected along the way. In their words: do you really think George Soros (famous for making a billion dollars by breaking the bank of England…) would give away his trades on a regular social trading platform…?
  3. How risk is managed. Except from the score a trader receives for his risk management, Darwinex has build-in algorithms to detect whenever a trader exceeds certain risk limits and they will (partly) close any underlying trade on behalf of the investor to protect investors’ capital.

So, to sum up, there are at least 20 reasons why you should prefer this broker over any other broker in the world.

  1. Darwinex is an FCA regulated broker and asset manager (this also means a trader can legally receive performance fees without any obstacles, as Darwinex is the asset manager, not the trader).
  2. Their business model makes sure there is no conflict of interest: everything is build in a way capital can grow for all parties (traders, investors and Darwinex).
  3. The way they treat their customers. Of course this is subjective, but I did not had one e-mail unanswered in 2 years.
  4. They are out in the open and allow people to critize them in every way: on their blog, social media,… They always respond to critics with well funded arguments.
  5. Since their inception they have constantly improved their platform and services, based on insights of both their traders and investors.
  6. Darwinex is build on a young and dynamic team. Evolution needs some fresh ideas and open minds, right?
  7. The youtube channel of Darwinex is full of webinars where the CEO goes into discussion with both traders and investors.
  8. The investable attributes show a trader where the weak points of his strategy are.
  9. A trader’s intellectual property is protected at all time, as he will always be the only one to know which trades he takes.
  10. Funds can always be withdrawn, whereas many other investments are locked away for a certain amount of time.
  11. Darwinex offers traders the chance to get millions of assets under management even by starting with a small account. Basically a good trading strategy is the only requirement.
  12. Darwinex invests a lot of cash in their best traders every month. Isn’t that the ultimate proof they believe in their own business model?
  13. Your money is safe as it is kept in a segregated account. So in case of any insolvency of the company, you will never lose your money.
  14. Only strategies with a trader’s real money behind it can be transformed into a DARWIN, which of course will increase the chance of a trader not doing crazy things in his account while investors’ are investing.
  15. I litterely could not find one bad review about this broker. (If you might find one, please let me know).
  16. Investors only can invest in traders who put their own money on the line. So if a trader loses money for his investors, he loses his own money too.
  17. They have no team of marketeers. They believe so much in their product, word will spread itself.
  18. Darwinex is working hard to get access to the US market, which will increase the pool of both investable traders and investors.
  19. Every trader with a good trading strategy doesn’t need to put himself in a risky situation to make trading worth it.
  20. It’s just so much fun to to trade and compete with other traders.

Looking forward to your feedback!