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.

Darwinex launches trading on CryptoCurrencies!

Dear Traders,

Another step further today!

No, you are not dreaming: Darwinex launches trading on CryptoCurrencies!
New assets, same model - we will now provide CFDs on BTC, BCH, ETH, LTC and XRP, via DMA execution through LMAX.

Here are the main characteristics of this new offer in premiere, for you Communit’ers!:
Leverage 1:1
Platform: MT4/MT5
Commission: 0.3%
DARWINs: No, for the moment (brokerage-only services)

Now that euphoria and tears have fallen, it’s time to take a look
at this market and opportunities that its volatility can offer.
##Discover cTrading on Darwinex


Click the image for Execution Conditions

Let’s start “mining” some alpha! :slight_smile:
OPEN AN ACCOUNT

Please share to your friend and colleagues, as for sure they will be interested!

7 Likes

Do I need a new account for that?
I don’t find any CC on the iOS demo account ( MT4 and MT5)

Hi @Journalist!

You need to create a new MT4/5 trading account from the Darwinex site.

When you create the account, you should select “Cryptocurrencies CFDs”.

  • If you can’t see the asset, please refresh the page so they get loaded.
2 Likes

Oh dear.

This has made me sad. So many good aspects of Darwinex, but this is a huge backwards step in selling the investor platform as a professional environment imo.

1 Like

Hi @TraderTom,

Sorry to hear you are not happy with this news.

We have had thousands of requests to launch cryptos and have only made them available when a reliable LP has started offering them…

You are more than welcome not to trade them, of course!

Best,
Ignacio

3 Likes

Fully support adding new features and asset classes. Just unsure about this. Just today an exchange got hacked out of $32m in crypto. While this being a CFD product does protect against some of the major issues its a little concerning for me in terms of liquidity protection for Darwinex as a broker.

In my personal opinion it could be seen as a negative for serious investors with serious money as its so easy to see so many companies being dragged down by crypto related losses.

But its entirely understandable to try and encourage new traders.

Probably just my usual level of over cautiousness coming through :blush:

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The biggest advantage of CFDs is that you can short CC :wink:

All what happens to the markets is a problem of the CFD provider, not Darwinex or the trader.

Otherwise… it’s crab :crab::wink:

2 Likes

The best option for anything crypto related :stuck_out_tongue_winking_eye:

Yeah, the fact its CFD’s is really good.

I came across a little negative above, didn’t mean too! I support Darwinex to the end of the earth! Just rather cautious.

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I hear you, @TraderTom.

Time will tell if traders manage to create good DARWINS out of their crypto accounts or not…

Trade safe!

3 Likes

Cryptos are popular and fashionable but I dont’ think they will increase the average quality of the population of traders.

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Did you ever calculate the traders VaR and the investors volume for a 1:1 margin?
Does the calculated investors volume violate the ESMA margin requirements of 2:1 for CC?

I think that serious investors with serious money who use to deal with Metaquote are ready to deal with cryptos. :sunglasses:

4 Likes

When you say LMAX, is it the traditional LMAX Exchange? or the new LMAX Digital ? https://www.lmaxdigital.com/ Both offer crypto but with certain differences.

Do I understand correctly that the market is closed 1 hour per day (from 17h to 18h)?

1 Like

I dont trade cryptos, so i dont mind. But:

  • no leverage
  • pretty high swaps
  • no Darwins (yet?)
  • most likey if so crypto only Darwins

Normaly swaps are used to pay the leverage,since you need to borrow some cash. But in this case it’s clearly just for paying LMAX/Darwinex. For me a no-go with the current conditions.

Maybe the only reason could be to build a track-record if you think you can make a good Darwin out of your Crypto Trading.

Just my humble opinion.

4 Likes

I assume the refinancing is done with futures.
The maintenance margin is more than 13k USD for 1 contract.

When BTC started at CME, the overnight margin was 40k for short and 20k for a long position in 1 contract (5 bitcoin)

I have been trading spot and margin cryptos frequently. Although there are some bucket shops who will offer 100:1 leverage, most places escaping ESMA rules do not dare to offer more than 2||3||5 leverage on their own will.
5:1 can already be lethal : you could blow your account easily in a couple of days of investment, even a matter of minutes! One of the specificities of this market is to alternate calm periods with massive price accelerations where it can move about 10% in a few seconds without ANY counterparty quote in between (I have checked futures / spot exchanges and OTC brokers and all become nasty at those times)

The ESMA cap of 2:1 leverage is high enough to empty by half your account in 2 to 5 badly negotiated sequences, depending on your sense of reflex and seatbelt fastened or not. Consequently, I feel Darwinex took the right decision at 1:1…

On another note, chart analysis is still really clean (cleaner than other markets) and it can be really pleasing to trade, even for beginner to intermediate traders applying some discipline. Also the radical moves often don’t take you by surprise and depart in the (very) short-term direction (fewer scissors chaotic movements). Therefore, if you’re monitoring carefully your positions, this makes it for an interesting instrument class.

I hope it will happen :wink:

About the trading costs of CFD providers, specifically LMAX, - outside of overnight financing - are average but about on par with alternate offerings.
However, I think that for liquidity absorption, LMAX has an advantage over all other solutions I was able to check (many), because for a similar global execution costs (spread + commissions), the LMAX costs almost exclusively rely on the commissions, not the spread. It makes for a very special situation where the spread is the tightest possible. I am assuming that this is a positive fact for a replication engine which will meet potentially meet more and closer price levels to feed. Although the LMAX top of the book is not the thickest I’ve seen, the LPs will fill the voids immediatly after the retail traders take it, so I believe that the particular combination of close Bid-Ask (related to the crypto world, not generally) + high commissions is kind of intriguing but an appropriate cocktail for Darwinex.

Otherwise, indeed the swaps of ALL trading brokers (outside some exchanges) are …high. Annually, it’s quite much. Having this in mind, as funny as it is, it becomes inappropriate to buy and hold unless you have strong beliefs that the market will really perform much directionnally. Hence, short term / active trading will be favoured, or mid-term trading as long as watched for. It’s not really the kind of market that you want to forget and kiss goodbye facing far stoplosses since the amplitudes are too strong too often. Also the perpetual trading hours (except sundays for LMAX) makes it kind of hard and tiring because you could go to sleep and wake up with a surprise (the asian session is not the most tame to deal with)

When/if crypto launch, I cross fingers you can regroup all asset types under a single account, much more practical.
Actually, even in case of trading only, w/o Darwins. Having to run 2 instances of the platform or switch between accounts is not the most practical way

Move from yesterday (friday 8th, Feb. 2019) as illustration :wink:
+11,5% in 14 hours

Let’s hope Darwinex will never ever offer us to write options on BTC, or it will be a matter of days before we run out of their business :rofl:

Lower timeframe (M3) no less interesting : +7.5% in 9 minutes

3 Likes

It’s not possible to do that with a Demo Account, or is it? I’m not able to get the window displayed in the screenshot

1 Like