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

Are there legal consideration when advertising your own DARWIN?

I am hoping that this is an easy question to answer considering that part of the purpose of Darwinex is to provide a platform where individual traders can attract investors.

But does this mean that once you are the owner of a DARWIN, that you can legally advertise your own Darwin as well?

I am not suggesting advertising it as investment advice, but merely having links to it on your own website etc?

I guess I am asking the question because my understanding is that the relationship is between investors and Darwinex, and not between investors and traders - but does advertising your own Darwin interfere with that side of things?

Sorry of it’s s silly question but would appreciate your advice.

5 Likes

This is really a very interesting question, because it is quite fundamental in the Darwinex concept.

Since the Darwinex website allows us to generate widgets for the promotion of Darwins that are inspired by our strategies, we must believe that this is not a major problem.

It should always be remembered that a Darwin is a product of Darwinex distributed under its exclusive responsibility.

So the question is not to promote “our” Darwins, because even though they are freely inspired by our trading, these financial products are not under our responsibility.

The problem is whether we can promote for a financial product, be it the Darwin XYZ or the UBS N share.

3 Likes

IMO you can show it but you cannot “too actively promote it” or tell people to buy now or sell now.
When laws come into play there is always a grey zone, and probably the width of this zone depends on the country of residence.

3 Likes

Absolutely!

Do not forget to put a disclaimer that your remarks reflect that your opines and can in no way be an investment recommendation, etc.

I am not a lawyer, but I believe that the approach “I invested $ 1,400.-- in the Darwin NEW because I am convinced that it is a good product, observe its strategy” is more judicious than " My Darwin NEW it’s the best, buy it. "

It is obvious that we are on the border, so we must take some precaution to be on the right side of the border :wink:

2 Likes

Useful question @TheMarketBank
I think is important to write a disclaimer on our own websites/blog/socialpages etc, and it will be great if a generic disclaimer will be published also in darwin/strategy widgets, as i see in many forex banners.

2 Likes

This is in-line with my expectation. It may be beneficial (and appreciated) to have a few words of wisdom from Darwinex themselves on this as an FCA regulated Broker and Asset Manager. My concern is if the advice is that you need to seek your own independent legal advice then we are kind of back to square one, at least as far as this topic is concerned.

Would be nice if for once there is no “grey area” but I know it’s perhaps wishful thinking :pensive:

1 Like

Hi everyone!

If you plan to write about your own DARWIN, I would highly recommend checking the FCA’s guidelines on financial promotions: https://www.fca.org.uk/firms/financial-promotions-adverts

Their approach on promotions on social media is also very useful: https://www.fca.org.uk/news/press-releases/fca-confirms-approach-financial-promotions-social-media

That being said, please note that you’d need to be regulated / authorised to carry out a promotion of a financial product. I don’t think there should be any issue in you mentioning on your website that you are the trader behind a given DARWIN, BUT please refrain from encouraging anyone to invest in your DARWIN: when it comes to financial regulations, better to stay safe than sorry!

8 Likes

Thanks @ignacio it’s useful information and something everybody should consider.

I have gone through the documents and it would appear that it’s best for Darwinex to remain in charge of any DARWIN promotions, where I live anyway.

1 Like

That’s disappointing…
Since there are over hundred of profitable Darwins, there is a small chance someone will choose your Darwin.

People tend to choose Darwins, which have most invested money for example… it is snow ball effect and new profitable Darwins will not catch up…

Is it possible to have own Darwin included/featured in some Darwinex promotions? Does Darwinex have some ideas how to promote specific new profitable Darwin?

Before April nobody noticed THA and 3 months ago nobody was investing PRZ .
Besides AUM people looks also Return, DD, DScore.
Also Capacity is not unlimited, it rains on the wet but not forever! :slight_smile:

Default ranking is by Return, not AUM, this is a sort of promotion, longest and best trackrecords have highest cumulated return.
Then there are filters.

3 Likes

I read on some thread in this forum, that we should not even hint that someone should invest in our Darwin as this is illegal activity without license.

We should just write about finance and on the side we should have just information, that we have Darwin,
maybe someone will click out of curiosity.

I found such website of darwin $TSB

http://robinfx.com/

Can he get into trouble? I heard fine for investment advice without license can be even 70 000 EUR.

Dear @InvestingHaridas,

Re financial promotions and adverts, I’d recommend having a look at the FCA’s guidelines on financial promotions and their approach for publications in social media.

All the content should include references to the fact that past indication is not indicative of future returns, etc.

I hope this is useful!

3 Likes