Darwinex Review

Darwinex Review

Darwinex Review

Today we have something completely different from your ordinary Forex and CFD brokers. Meet Darwinex, a social trading platform whose main asset is your strategy! Developed by a group of trading enthusiasts way back in 2012, this London-based company enables clients to profit by offering their successful trading strategies to other traders. Although it may seem a bit far-fetched, the system works flawlessly by introducing a total of 12 metrics called Investment Attributed that fully defines pros and cons of each available trading strategy. That way, you’ll always be able to filter out the exact strategies you wish to apply to your future trades. But there are many fantastic features hidden under the Darwinex’s innovative approach to trading. Ready to discover all of them? Our thorough analysis of this platform has resulted with an extensive Darwinex review article. Here we will explain all the vital features of this platform, and state out our personal experience with it. If you want an honest and the most detailed Darwinex review, seek no more!

Darwinex Review | What is a DARWIN?

The best possible way to start off our Darwinex review is by analyzing the platform’s main asset – DARWIN. It is an acronym that stands for Dynamic Asset and Risk-Weighted Investment. Usage of DARWINs divides clients into two categories – traders and investors. Traders are responsible for creating and submitting DARWINs, so that investors can buy the ones that best suit their trading needs. Buying and executing each DARWIN will execute trades that are tied to its underlying strategy without showing them to the investor. This unique feature is implemented to keep the trader’s intellectual property safe, and also enabling them to earn some extra money from successful strategy as a reward for the efforts required to create a DARWIN. Darwinex serves merely as a mediator between traders and investors by forming asset prices, thus freeing traders of the burdens of bureaucracy – if traders were to define DARWIN prices, they must be regulated by the governing agency.

Darwinex DARWIN Asset

Darwinex DARWIN Asset

Each DARWIN passes through a protocol called the risk manager, which protects investors from trader’s excessive leverage and adjusting risk of all DARWINs to the same amount. Basically, each DARWIN investment carries a risk of 10% value, 5% of the time. To put it simpler, let’s say that your DARWIN strategy will last for 20 months. This means that it will lose 10% of its monthly value only in one month, while in other 19 months it will gain 10% or more of its monthly value. Naturally, by diversifying your portfolio, your chances for loss drop even more, so it is generally advised to invest in more than one DARWIN. Bear in mind that, as completely liquid assets, DARWINs can be bought and sold at any time. These are the basics when it comes to DARWIN as a main asset on this platform. We’ve seen how you can buy it, but how does DARWIN get created? Keep on reading our Darwinex review and learn all there is!

Darwinex Review | Creating your own DARWIN

In the previous part of this Darwinex review, we’ve mentioned that there are two types of clients here – traders and investors. The latter ones use their deposits to purchase DARWINs from the Darwinex platform, in hope that their strategy will multiply their initial investments. Less experienced clients are sure to stick to the investor role, while those with higher trading skills are destined to become traders. Let’s discover what traders have to do in order to create their own DARWIN and offer it to investors worldwide.

Darwinex Login Page

Darwinex Login Page

First of all, all traders who want to create their own DARWINs must be owners of a live account. The main platform used for trading with Darwinex is a well-known MetaTrader 4 interface, which we’ll be analyzing later on. Traders have two options here – either opening a brand-new live account with Darwinex, or migrating their existing MT4 trading account opened at another broker. Here, migrating stands for transferring all existing history of executed trades from a third-party trading account to a newly one opened at Darwinex. This serves as a basis for creating unique strategies that can be transformed into DARWINs. However, in order to create one, some other criteria must be met. First of them states that Experience score of a strategy that applies to become a DARWIN must be above 0,5. To clarify, Experience score denotes the success this strategy has experienced over a predetermined time span. The higher the score, the more probable it is to result in successful trades. Secondly, trading account that provides the strategy has to be active at least a month. And finally, 50% or more trades on the account have to have a time span longer of 10 minutes or longer. If all these requirements have been fulfilled, you’ll notice the “Create DARWIN” button on your strategy’s statistics page. Hitting it will trigger the DARWIN approval procedure, which often takes place during the weekend, outside of market hours. Upon receiving an email confirming your new DARWIN, it automatically becomes eligible to receive investments from other clients.

Darwinex Key Attributes

Darwinex Key Attributes

We should also mention that the traders which provide DARWIN earn a 20% performance fee from each of the investor’s earnings. This fee is paid on a quarterly basis, depending on the date of the initial investment, with each investor having unique end date of investment. That way, successful traders that managed to provide top-notch DARWINs can earn a whole lot. Naturally, each trader can close any DARWIN he has submitted at any time, no questions asked. This makes all the open trades close instantly, and the sole procedure is executed in up to 2 business days. Bear in mind, however, that the process cannot be reversed – if the DARWIN gets deleted, it can’t be restored and put back on the market. And that’s about it when it comes to DARWIN creation. We believe that now you see all the perks of this intriguing concept of trading with intellectual property. However, do you know what you have to do in order to enter this market? The next part of this Darwinex review is supposed to clarify all facts regarding banking options and trading requirements, so keep on reading!

Darwinex Review | Deposits and Withdrawals

Since we have given a thorough explanation of the concept of DARWIN, prior to analyzing key factors that distinct one DARWIN from another, this section of Darwinex review will focus on banking methods. That being said, we should state that the minimum initial deposit amount is set at 500 currency units (USD, GBP and EUR are currently supported) for individual accounts and 10 000 for corporate accounts. Funds are automatically transferred to the wallet, where they can be re-distributed to the appropriate trading or investor accounts. Keep in mind that this minimum restriction is applied only to the initial deposit – all further deposits are not limited in minimum amount by any means. As for the available methods, they include bank wire transfers, credit cards including Visa and MasterCard, as well as Union Pay wallet. Although Darwinex doesn’t charge any additional fees regarding deposit processing procedures, some fees might be imposed by your bank if you happen to deposit using wire transfer. Processing time also varies – credit card deposits and Union Pay deposits will be processed in a matter of a single business day, while wire transfers can take up to 3 business days to complete. These are pretty standard time frames in the industry, so it’s nothing to worry about. Furthermore, we have tested all the available methods multiple times, and we’re happy to state that all of them are working flawlessly, just as you would expect from a broker this good.

Darwinex Deposit Methods

Darwinex Deposit Methods

The same methods can be applied to withdrawals as well. The important thing is that owner of the bank account that is to be credited with the withdrawal is the same as the owner of Darwinex trading account. This applies to all withdrawals regardless of the preferred method. We should also note that, prior to making your first withdrawal, you’ll be asked to submit some personal documents in order to prove your identity. These documents include a color copy of your ID document such as passport of personal ID, as well as proof of residence in the form of utility bill. Verification procedure requires Darwinex staff to verify your documentation, which can take up to 1 business day. However, this is a one-time procedure, so the moment your documents become verified, you’ll be able to withdraw as much as you want, as many times as you like. Corporate accounts, on the other hand, require some additional documentation since they are a subject of higher transactions, but the procedure stays the same. We have thoroughly tested the withdrawals as well, and we can honestly state that no issues were found at all, regardless of the preferred withdrawal method. However, before we wrap up the whole banking part of this Darwinex review, let’s take a closer look at yet another unique feature – the wallet. Stick around!

Darwinex Review | Using the wallet

All deposits and withdrawals are processed from the central part of your account balance called wallet. Funds that are virtually held in the wallet are physically kept at Barclays, a world-famous bank based in London. Wallet can be credited by owners through deposits, or by Darwinex when you become eligible to receive performance fees from your successful DARWINs. All the money that is allocated to your wallet instantly becomes available to you, and you can do with it whatever you want.

The main purpose of a wallet is to transfer funds to your trading or investor account, each of them being opened at the same time the moment you register for a live account. Doing this is fairly easy – just go to one of your available accounts, hover over your current balance and click on “Manage Funds”. From here you can choose where to transfer your existing funds. And that’s about it – using the wallet is really simple, and everything works as designed. This wraps up our overview of money management on Darwinex platform. Now, let’s see how this company stands in terms of business regulation, which is considered as one of the main indicators of company’s reliability. Stay with us and learn the honest truth!

Darwinex Review | Regulation

As we have stated numerous times before, regulated broker is numerous times more secure and trustworthy than the broker without regulatory agency that monitors its business. Reason for this statement is simple – if the broker is registered with a regulatory agency, it has to implement strict security protocols and various measures to protect the identity and funds of its clients. Becoming a regulated broker is a laborious effort, but we are more than thrilled to announce that Darwinex succeeded in becoming a fully regulated company.

Darwinex Regulation

Darwinex Regulation

As a London-based brokerage company, Darwinex is registered, regulated and monitored by FCA, a leading UK-based regulatory agency, under the license number FRN 586466. A regulatory body performs periodical check-ups regarding the broker’s solvency, customer data management, personnel qualification, safety of deposits and other features vital for the overall security. Also, this means that all funds belonging to clients are being held in separate accounts, without mixing with the company’s funds. This ensures that clients’ deposits and earnings remain intact and secure in the possible event of company’s insolvency. Furthermore, all accounts are eligible to enter the FSCS, or Financial Services Compensation Scheme. This procedure protects you from the possible insolvencies of brokerage company and mediatory bank, compensating your losses with the amounts of 50 000 and 85 000, respectively. Finally, the already mentioned identity verification procedure is yet another regulatory process known as Anti-money-laundering procedure. This prevents creation of fake accounts that serve as a way of injecting “black money” back into the system. And that’s about it when it comes to regulation of Darwinex. Now, let’s take a closer look at the broker’s unique trading interface – although it’s based on MT4, it has some truly unique features. Keep on reading!

Darwinex Review | Trading Interface

As we have mentioned earlier in this Darwinex Review article, the broker’s main trading interface is MetaTrader 4. Since we’ve already made a series of thorough analysis of a platform itself, we’ll just state that this is the most popular interface for accessing global markets in the world. Aside from slick, user-friendly interface, it features advanced analytical tools and graph charts, ability to track multiple assets simultaneously, in-depth market research, cross-platform support and much more. Each newly registered trader can either open a new account or import an old one opened at another broker. By developing your trading strategy on this platform, you can create a DARWIN, offer it to other traders and earn some extra money from performance fees of successful DARWINs.

Darwinex Webinars

Darwinex Webinars

The interface for trading DARWINs lets you browse all available DARWINs and filter out the very specific ones (high yield, good scores, top investments, etc.). A quick glance over the DARWIN’s preview gives you the information about its current price, overall investment, ROI and drawdown over 2-years period, and an overall Darwinex score. The latter one is the most important index of DARWIN’s success, and is defined as a combination of 12 key attributes. Those attributes are: experience, market correlation, risk stability, risk adjustment, open strategy, close strategy, positive and negative return consistency, duration consistency, loss aversion, performance and capacity. By combining scores of each key attribute, an overall score which takes any value between 1 and 100 is created. Naturally, higher score means higher winning chances. Apart from these information, clicking on any DARWIN will open a series of dynamic graphs showing data regarding returns, risks, timeframes, divergence, correlation and underlying strategy. All of these can be used in predicting the strategy’s future success, and data is presented in a highly sophisticated manner. After you’ve selected your ideal DARWIN, just hit the big green “Trade” button, and a new pop-up will appear. Here you’ll be asked to define if you want to buy or sell, set order type and, optionally, add conditional orders (Stop Loss and Take Profit). And that’s virtually it.

Darwinex Trading Platform

Darwinex Trading Platform

Keep in mind that Darwinex enables you to have a full tour of the platform by adding a full-fledged demo account the moment you complete the registration process. With 10 000 virtual dollars, you can freely roam through the vast amount of available DARWINs, searching for the strategy that best suits you without risking your own money. This is not a common practice among brokers, so having this option is a huge plus. Naturally, when you feel that you’re ready to invest some real money, just switch back to a live account and start trading. And that would be all when it comes to trading interface. We can state that our rigorous tests conducted on this trading interface found no suspicious behavior – everything works smoothly, prices are in accordance to global markets, and order execution is incredibly fast. Yet another huge plus for Darwinex! But that’s not all, we still have one hidden feature to analyze, so stay with us in the next part of Darwinex review and learn all about it!

Darwinex Review | Darwinia

Before wrapping up our extensive Darwinex Review, we still have to take a look at DarwinIA, a monthly tournament that rewards traders with notional allocation of funds to their winning DARWINs. The idea is to encourage traders to commence trades more frequently, therefore all Live account owners who own at least one DARWIN can participate. Bear in mind that, in the event of high correlation between two DARWINs, only the one with higher Darwinex Score can participate in the event. Participating DARWINs are being ranked by the D-Score (average of all 12 key attributes), return rate and trader’s activity in the past month. At the end of every month, top 48 DARWINs receive a 6-months-long fund allocation, while traders also receive 20% performance fee for all wins made using one of the rewarded DARWINs over the course of 6 months. This is a great way for traders to earn even more money by using their skills to provide top-class trading strategies. And now, after the extensive review of each vital feature, we believe that this Darwinex review is coming to its end.

Darwinex DarwinIA

Darwinex DarwinIA

Darwinex Review | Conclusion

Today we’ve encountered a truly specific broker that aims to disrupt the market as we know. By replacing traditional assets with intellectual property in the form of trading strategies, Darwinex has created a platform where each client can earn as a classic trader, or as an investor in existing strategies. The concept of DARWIN is truly a much-needed refreshment on the market – although the whole trading process might seem a bit complicated, it is actually pretty simple and self-explanatory. Virtually everyone can find their ideal DARWIN, or create its own by trading from a scratch or importing existing trading portfolio. Banking methods are also working flawlessly, and the same can be said for trading interface as well. On top of all, DarwinIA tournament guarantees even more money to the top DARWIN providers, meaning that this broker truly values knowledge of its clients. All in all, we strongly believe that, regardless of your approach to trading and previous knowledge, you can’t fail if you register your trading account here. Of course, you can always take a tour using demo account and decide for yourself, but you shouldn’t let this opportunity slip through your fingers. Go on, open a free trading account and see why this broker has a steady increase of new clients!

Author's overall rating:
Author: Ben Prescott
Updated:

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