CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 66 % 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.

500k deposit protection

https://www.darwinex.com/deposit-insurance

In my opinion, this is one of the most anticipated killer feature to have graced Darwinex (Juan had talked about such insurance since quite some time), to compliment the recent technological advancements. I hope that it helps your growth and attract larger investors for everyone…

When I see recent investors dipping their toes between $500k to $1M on a single shot,

I can only think that the safety brought up by this protection is a massive smart step forward for all sides (traders + investors) !
Even if prospects choose to keep their capital at minimal level by disposing of leverage 2 on Darwins, it seems we could potentially enter a new era with that degree of confidence gained.

As well only aware of the £50k/75k FCA guarantee until now. I’m wondering if you can handle official information (link/documentation) coming from the “emitter” of this scheme for reference ? Or is there a webinar out yet ? (I left for some time)
Also wondering if that coverage is special to Darwinex or also hit other retail brokers established in the UK ? I’d guess so ? Tell me not and I’ll jump from happiness.
Anyway, it seems to really better suit the vision happening at Darwinex - a serious client would be quite daunted to deposit massive capital amounts at the many miscellaneous (famous) bucket shops around, who don’t offer as many great incentives as risk:reward opportunies as Darwinex delivers !

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ActivTrades (UK) has £1M deposit insurance. I have been trading with them for many years as they offer Spreadbetting accounts with pretty much the same costs as normal accounts.
But please note, migrating a Spreadbetting account into Darwinex does not work, so if you want to build up a trading track record for Darwinex I suggest you mirror trades from another broker to a live Darwinex account, rather than migrating an existing track record.

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Thanks for feedback ! I am about spreadbet taxation level on all instrument classes already (my residence country has a regular income/capital gains threshold at less than 10%, even 0% if operated accompanied with a local holding)

Just a thought, since you’re a british citizen, could you not consider setting up a temporary company in Gibraltar to free you ? You’ve got non-residency companies as well as LLC status, both are very cheap and easy no maintain (no audit on accounting below £500k annually for the later). Don’t pay yourself dividends and at a later time move there for 183+ days to break it. Not only you could switch gears but also you’d escape ESMA rules (not that it’s a quest) at some brokers since Gibraltar is outside UE + could achieve pro status / leverage at other brokers

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So went around the table, here’s a summary of the industry on funds protection at the moment

Note: I don’t mention the banking coverages specific to country, like the FCA coverage (£85k) if the bank blows instead of the broker - not the topic

(Correct if wrong info / add info if missing)


AAAFx / ZuluTrade

  • HCMC (Greece) regulation : 30k EUR

ActivTrades

  • FCA (UK) : 50k GBP + excess insurance from Bahamas up to 1M USD, custom higher amount on request
  • SCB (Bahamas) : insurance from Bahamas above 10k USD up to 1M USD, custom higher amount on request

Alpari

  • FSA (Saint Vincent & the Grenadines) : none

AMP Global

  • CySEC (Cyprus) : none

AxiTrader

  • FCA : 50k GBP
  • ASIC (Australia) : none

Ayondo :

  • FCA / BaFin (Germany, for the fund management licence) : 50k GBP + supplementary insurance up to 1M GBP (as much on the social trading part than trading part)

City Index (GAIN Capital affiliate)

  • FCA : 50k GBP
  • ASIC (Australia) : none

CMC Markets

  • FCA : 50k GBP

Darwinex

  • FCA : 50k GBP + automatic complementary insurance up to 500k GBP (for both investors and trading accounts)

Dukascopy

  • FINMA (Switzerland) : 100k CHF
    Above 100k CHF, possibility of special service called “bank guarantees” which allows to keep funds at own bank of choice (few partners available) yet still trade at the broker. Requires individual case study / permission

Dukascopy Europe

  • FKTK (Latvia) : 20k EUR

eToro

  • FCA : 50k GBP
  • CySEC (Cyprus) : 20k EUR
  • ASIC (Australia) : none

FOREX.com (GAIN Capital)

  • FCA : 50k GBP

FXCM

  • FCA : 50k GBP
  • IIROC (Canada) : 1M CAD

FxPro

  • FCA : 50k GBP
  • CySEC (Cyprus) : 20k EUR
  • DFSA (Dubai) : none
  • SCB (Bahamas) : none

GAIN Capital

  • FCA : 50k GBP
  • ASIC (Australia) : none

IC Markets

  • ASIC : none

IG

  • FCA : 50k GBP
  • ASIC (Australia) : none

Interactive Brokers

  • stocks/ETFs, SEC (USA) : 500k USD up to 30M USD under conditions
  • futures/forex, CFTC (USA) : none
  • futures/forex/CFD/stocks, FCA (UK) : 50k GBP

JFD Bank

  • CySEC (Cyprus) : 20k EUR

LMAX

  • FCA : 50k GBP

Misc. futures brokers established in the USA, like : AMP Futures / NinjaTrader Brokerage / Deep Discount Trading / TradeStation / Tradovate / Velocity Futures, etc

  • CFTC (USA) : none

OANDA

  • FCA : 50k GBP
  • IIROC (Canada) : 1M CAD
  • NFA (USA) : none
  • ASIC (Australia) : none
  • MAS (Singapore) : 75k SGD

Pepperstone

  • ASIC (Australia) : none

Pepperstone Limited

  • FCA : 50k GBP

ProRealTime (IG white label)

  • FCA : 50k GBP
  • ASIC : none

ProRealTime (InteractiveBrokers white label)

  • futures/forex/stocks, FCA (UK) : 50k GBP

WH Selfinvest

  • CSSF (Luxemburg) + FSMA (Belgium) / ACPR (France) / BaFin (Germany) : none

XTB

  • FCA : 50k GBP

Conclusion :

  • FXCM Canada, too gimicky of a choice, too restristive localisation
  • Dukascopy, requires application, not guaranteed to be granted, not flexible anyway
  • ActivTrades, insurance jurisdiction …potentially sketchy ? (or not)
    Personal note: given that I almost went to court against ActivTrades back in 2009 due to a risk system management failure on their part (my account was left with ghost positions I couldn’t see on the futures platform, only statements, for a full week which led my account into negative balance territory for 20k € w/o margin cut - they plead guilty yet only reimbursed 50% of the sum - never again ! :mask: I’ll pass
  • Interactive Brokers LLC (not UK) on stocks, great but specific
  • both Ayondo and Darwinex seem to be the winners of this battle, by offering the highest capital protections through good reputation but also in the most straight-forward way, by easy non-hassle access
    Congratulations for your solution :balloon:
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Thank you very much @EvidenceAlpha for such exhaustive research !

It’s quite ugly that Ayondo’s home page doesn’t work if you don’t specify language :

https://www.ayondo.com/

A bit pernickety perhaps, but it can be “prohibitive” for some people :slight_smile:

Thanks for this data compilation !

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NP ! I compile much information everyday. Just sharing

Ayondo does not come close to Darwinex as a competitor anyway. Much less evolved, arguable model, spreads are very large to permit split share, etc. Their own merit is to make Darwinex shine in comparison :slight_smile:

By the way, ZuluTrade has changed its unfair historical reward structure based on trading volume to copy the % trader payouts on winnings of Darwinex at the end of 2018. When you cannot take to challenge neither invent something better, you mimic :wink:

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@EvidenceAlpha
thanx for you research. :+1:

Any info about Alpari RU ?

I remember that Alpari UK died during the CHF event, treat with caution

The operations look now to be ran under the FSA regulatory body from Saint Vincent & the Grenadines ? which would not insure any amount, like for ALL jurisdictions originating from the Carribeans… (no compensation schemes there)

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Yes I know but Alpari is still a reference broker and runs probably the best PAMM service IMO .
https://alpari.com/en/investor/pamm/ratings/#type=full&layout=grid&page=1&columnSet=main&sort[]=rating|asc

So it is an important competitor for Darwinex and other social trading brokers.

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Can you specify it a bit, please ? Do you refer to specific criteria or simply an overall feeling :slight_smile: ?

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A specific criteria can be AUM , BTW it is the only PAMM I would invest if there were no Darwinex.

AUM and lenght of trackrecord of the managers.

I think a serious investor could consider AlpariPAMM but would never consider Zulu.

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Good point, let’s edit my main post

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Thanks @CavaliereVerde.

I asked because, a few years ago, I had researched Alpari relatively to PAMM feature and was quite convinced but some details let me a bit uncomfortable (as the one quoted by @EvidenceAlpha).

And then… Darwinex appeared :grin:

Thanks for your feedback !

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Deposit protection is just one feature.

It is important to consider brokers used by real traders, those with many years of trackrecord.
If real traders work there it means the company can be trusted. :wink:

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CavaliereVerde,
You underestimate Darwinex))) Almost all good traders who are in Alpari already have an account in Darwin. If you are interested in a specific manager in Alpari, write to me. I will try to find his account in Darwin. It will be easier for me. Since the search will be in their native language.

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Yes I know! :wink:

Up to my knowledge Darwinex traders come from:
Alpari . ActivTrades , ICMarkets

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Added the Luxemburg based WHS to the mix: no broker failure coverage besides segregated accounts from this so-called multi-award broker, not on neither of their branches (Belgium/France/Germany)

Always read about the little notes between the lines :

The ActivTrades Excess of FSCS Insurance is subject to the Terms and Conditions of the policy wording
…subject always to Exclusions stated in the Policy

Wish I had been able to read it (luckily the Bahamas insurance company should use english as a language) but the support was unable to provide it when requested… all I got back was generic advertisement links
@SATFX as a client, are you able to get a hand on it yourself ?

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Added : City Index + FOREX.com + FxPro + GAIN Capital + OANDA to the info list here
500k deposit protection

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Added : Pepperstone / Pepperstone Limited (UK)

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Added : AMP Global (Cyprus), no guarantee

Surprise, AMP Futures (USA) launched a european subsidiary in Cyprus offering futures + FX & CFD to choose from 3 sources including LMAX+FXDD+CHF (LMAX, best one), all accessible for trading from the same MT5 account.

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