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.

High swaps

What about trading conditions ?

I think, Darwinex should list the broker, where the account is migrated from.
Depending on the strátegy it can make a huge different, where you trade

Personally I migrated 2 accounts from IC Markets AU, where the strategies are generating fantastic results for years now.
But with darwinex condition in spread, comms and swaps (swaps are one of the worst I have seen in FX industry so far) I hardly can make a little bit. AND its getting worse the last months, sorry to say.

Trading conditions is the main difference (for me), not higher leverage with IC which will be adjusted during import anyway due to VaR target.

7 Likes

I agree with swaps, it is worse than worst broker. For example, I wonder which broker in the world will not refund (positive swap charge) for EURNZD short, with such high interest rate diifrential?

@bianka Some explanation from Darwinex team might help (though I know Darwinex will pass this on to liquidity provider).

May be this is not big issue for me as I trade small lot size, but with Darwins handling millions this charges can be big loss for traders and investors.

11 Likes

+1 The current Gold swap is huge.

We don’t know if Investors pay the same swaps as the traders do we?

Dear @Shivank,

Thanks for your feedback. We will forward your comment to our LPs to discuss the swap rates with them.

Unlike other “brokers”, we do NOT act as a market maker and hence have to pay swap rates to our LPs. As you certainly are aware, most brokers internalise their flow and hence are not charged any swap rates whatsoever (i.e., they are charging their traders for sth they are not paying). Unfortunately, we cannot make up fake swap rates like other brokers do, we depend on our LPs.

In regard to NZD pairs, it is not true that we are not refunding positive charges. As we announced last week, today is a bank holiday in NZ.

Usually, when there is a bank holiday, LPs charge / pay greater swaps rates on the days leading to the relevant bank holiday (you certainly noticed higher swaps last Wednesday because of today’s bank holiday in NZ, NZD positions were paid *4 on Wednesday but, of course, no one complained then :wink:

Bank holidays apart, I will make sure your comment reaches our LPs so we can negotiate better rates with them, your feedback is highly appreciated!

Have a great week ahead,
Ignacio

4 Likes

I appreciate the customer service and Darwinex platform because of their some amazing ideas and I don’t have any bad intention on this feedback. I am a happy customer of Darwinex, by worst broker I mean only in terms of swap charges only.

I am not expert on how broker functions, but heard similar stories as you are pointing out.

I am very much of aware of such things, for example, I never complained in past when I didn’t get positive charges on EURMXN position and upon contacting Darwinex team they said it was because Easter holidays, fair enough I understand that.

Well, my post was in support of another post because I had a similar experience, which was part of constructive criticism. I was talking about EURNZD (my position was opened 14 OCT and closed on 18 OCT), which was not affected by a holiday at all. Screenshot is attached.

This is not a complain, anyway this swap rates are in cents and with retail trader like me often it is not worth time and energy. But as I said for investors/darwin providers with million under their AUM it means a lot. Secondly, in my mind I have high value for Darwinex as a broker and such illogical swap rates affect it.

I am repeating again, Please don’t consider this post as bashing/blaming to Darwinex team. Infact, in my opinion Darwinex is best broker for retail clients at this point of time. Big thumbs up for your customer support and for listening/reading to this community, which indicates you give importance to your clients.

Thanks again, and sorry if I have hurted anyone by my opinion.

Best regards,
Shivank

2 Likes

@Ignatio:

If this (=swap rates) is, what you got from your LPs (and I trust your words really) , then you definetly have to TALK TO THEM.

I traded with about 20 different brokers during the last 2-3 years and concerning swaps darwinex is the worst. Spreads and Comms are okay so far (althought spreads getting worse as well the last few month)
Go to MyFxBooks and compare your values to other and show this listing to your LPs.

2 Likes

I imagine it’s all about how much volume you bring. Darwinex is still relatively small so we can hope that with time as Darwinex grows they will be able to negotiate better rates. I understand Darwinex is not profiting from swap fees.

2 Likes

I agree with you. AND , I guess darwinex is dealing with LMAX (and Saxo?).
LMAX is also one of the worst I had traded with.
Good spreads and executions and I really like ther idea of an open 'FX-exchange" , but a ‘swap-robbery’ machine …

2 Likes

Comparison Darwinex vs. AxiTrader (where Psyquation plugs into)

Source: MyFxbook screenshot taken at the time of this post, since rates continously change.

@ignacio @javicolonbo @juancolonbo Please negotiate with your LPs

10 Likes

AxiTrader is very good for SWAPs, hard to get the same rates, but I agree that a negative SWAP on a short position on GBPUSD is close to be unacceptable.

3 Likes

Hi @Renko,

Thanks a lot for your feedback.

Since most brokers are b-booking their flow, they should not even be charging swap rates (because they are not being charged any swap rates on their b-book flows).

I don’t know about Axitrader’s execution conditions, but you can bet we have pushed our LPs in regard to swap rates.

That being said, unlike AxiTrader / Psyquation, with us you get better spreads, 500,000 insurance policy for your deposits, Darwinia prizes, rigorous VaR analytics, FCA regulation both as broker and asset manager, rebates based on your trading score, etc.

We will work hard to improve our trading conditions, of course, but I hope you agree you are getting fairly more with us than you get with Axi or Psyquation!

PS: I just saw your FHT DARWIN, keep up the great trading!

10 Likes

I think it is important for people to understand how real forex brokers like Darwinex operate compared to other brokers. Most brokers don’t send any orders to the market, it’s you vs the broker, that’s why they can “simulate” their swaps to be whatever they want.

Darwinex has to operate within actual market conditions, not a fake “sandbox” environment.

I think what you need is a market maker

Hi Ignacio. Just wondered if you had an update on this from your providers, please?

Cheers

Yes, I agree with all the comments that swap charges are worst at Darwinex. I started trading with Darwinex a few months ago. I am satisfied with the trading experience at darwinex but not with swap charges.

2 Likes

Hi @StriderFX,

Thanks for your follow-up.

If LPs reduce swap rates at some point, you’ll notice!

We got lower spreads on DAX this week, we keep working to get better conditions.

Best,
Ignacio

1 Like

Thanks for the reply.
As an example if I trade a net pair such as 0.75 / 0.75 USDCAD my average costs in swap rates is minus 25% profit using my strategy (buy or sell)… I intend to increase my live account balance but I currently trade this strategy elsewhere at lower costs. I obviously prefer trading with Darwinex though! Keep up the good work guys!