CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64 % 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.

Brokernomics, a #DarwinexUnCut Mini-Series

Our CEO Juan Colón and CDS Ali Saif (himself also a retail trader) have started a #darwinex-uncut mini-series about “Brokernomics”. Inspired by the popular economics book Freakonomics, our goal is to emphasize the need for all retail market participants to understand how their brokers really work, inside out.

Brokernomics (1/5) - Introduction

A broker is a complex machine, its inner workings not having much in the way of publicly available information.

With this series of conversations, Juan attempts to describe the inner workings of this complex machinery. The better you understand how we work, the better we are able to serve you at the end of the day.

Brokernomics (2/5) - Direct Acquisition

In the 2nd part of the series Juan talks about Direct Acquisition of clients by brokers.

He sheds light on how much it costs for example, to a highly reputable, major, well-established brand and broker like IG, to onboard a new customer, when on average the company breaks even after spending the money to onboard the customer, and what the cumulative lifetime value of that customer is to the company.

Juan also explains why Darwinex does not and will not spend large sums in upfront advertising costs to attract clientele, relying exclusively on existing clients’ recommendation and word of mouth.

Important note

The IG Group example in this conversation serves to both appreciate and demonstrate the scale at which large, successful brands like IG operate. Darwinex respects IG and congratulates them for their success, and does not consider IG as its competitor - different target client niches altogether.


Enjoy… and stay tuned as more is to come soon! We’d like to encourage you to let us know if you’d like us to cover anything specific in this series. Just reply here or easily send us a voice message.

Support material to the series

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Brokernomics (3/5) - Indirect Acquisition

This next segment of the Brokernomics Series, is about:

  • Indirect Acquisition e.g. through affiliates / introducing brokers
  • How the Darwinex Business Model is not designed to support this form of client acquisition and the reasons / conflicts of interest issues behind why this is so

For the time being, this is available on Soundcloud, Spotify, RSS. Video coming in the next days. Enjoy!