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.

New DARWINs, new Commissions Structure?

I’m an investor not a trader and new to DarwinEx, so forgive me if I’ve overlooked something here, but I’ve a few Qs on the commissions changes, since its stated at bottom here (Darwinex Impact): “Above all, though, Darwinex investors become far more scalable - in that waiving brokerage fees pave the way for Darwinex to manage 3rd party professional AuM with wholesale brokerage providers.”. Thought it best to ask Qs here rather than clog up the thread on the new DARWINs in the News Section.

  1. Are all DarwinEx trades routed through Interactive Brokers using their commissions structure and- prior to the changes- with a markup of 60% (since that’s the new reduction and fees will now be waived going forward)?

  2. It seems it’s possible to have a trading account with DarwinEx but WITHOUT using DARWINs as a wrapper. Would anybody (and if so why?) do this previously given DarwinEx was marking up the commissions charged by Interactive Brokers, since they could get cheaper commissions maybe going elsewhere or direct to IB?

  3. Is this one reason why so many accounts come with track records established elsewhere- it’s just (60%?) cheaper to establish an account and associated track record elsewhere or even directly with IB, then port it and your money over to DarwinEx to start a DARWIN?

Thanks for any responses.

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Hi @Catch21! Thank you for starting a separate topic!

Darwinex isn’t offering the IB integration yet - though we’re working on it every day. For the time being, we’re talking about the Darwinex-owned CFD broker.

We indeed have customers who’re interested in the Darwinex broker’s execution and customer service and not in providing a DARWIN. Retail customers have access to retail pricing here and also elsewhere. Professional customers have access to professional pricing here and elsewhere. While it’s true that after the IB integration your advantage to trade with Darwinex instead of trading directly with IB won’t be commissions but the DARWIN added value. this doesn’t mean that you’d have access to IB’s wholesale pricing.

No, as retail traders typically don’t have access to wholesale brokerage with other brokers either.

I hope this clarifies the points above, please keep the questions coming!

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Thanks for being gentle with me :grin:, what a time to start a new demo account (this last weekend)!

So, to clarify:

  1. DarwinEx (currently) owns/runs its own CFD business/broker (just like IG, IB, eToro etc…) with its own spreads, commissions etc…, and any trader can use it, whether they’re running DARWINs or not. If they’re NOT running DARWINs, it’s simply a Q of how competitive DarwinEx as a broker is versus other industry players (and it seems very competitive)?

  2. Once IB integration is complete, will Darwinex be getting out of the CFD broker business and just routing everything through IB?

  3. Also on “While it’s true that after the IB integration your advantage to trade with Darwinex instead of trading directly with IB won’t be commissions but the DARWIN added value.”. So trading through IB directly or via the Darwinex-branded IB interface will mean NO difference in commissions, the benefit being you can put your DARWINs together to trade through IB and also get Darwinex support instead of IB’s lady in Zug? On the wholesale pricing, you’d still have access to this through IB if you qualify, not sure what “this doesn’t mean that you’d have access to IB’s wholesale pricing.” implies- should it be “this doesn’t mean that you wouldn’t still have access to IB’s wholesale pricing.”?

  4. On track records established ex-Darwinex, just wondering why more traders don’t use Darwinex period, given commissions are competitive. Is it that smaller retail traders who eventually come to create DARWINs at Darwinex can’t avail effectively of the rates (i.e. with less capital they’re forced to eat wide spreads at EToro (say) instead of min comms like 5 per standard lot round trip)?

Thanks again.

A question associated with the new commission structure.

With the new DARWINs coming on June 1, Darwinex waives brokerage fees. I read on the pivot website that Darwinex will stop paying diversification rebates. Will Scouting Program and Affiliate Program also be ceased? Since Darwinex loses the commissions generated by investors, I don’t see how Darwinex can continue the two programs. @bianka

'Affiliate Program
Our Affiliate Program rewards you for helping us grow the Darwinex movement by referring traders & investors. Affiliates get paid a % of the commissions generated by their referrals every month.

Scouting Program
Help us grow the Trader Nation.
Invite a rock-star trader and earn 10% of gross commissions generated by investors in each of his DARWINs (up to a maximum of $10k per DARWIN)* ’

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You’re welcome! Let’s go again!

Correct. Here are the execution conditions.

The idea of the IBKR integration is to add the IB asset universe to the current offering, not replace. So the Darwinex CFD Broker will continue.

Both already existing IB customers and new customers will be able use the Darwinex-IBKR integration but details are still in definition so let’s wait until later this year when this gets more defined.

I’d say that typically when a trader hears about Darwinex they are already trading with a broker.

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Hey @OakLadder, thanks for your question!

While both the Afilliate Program (regulated individuals only) and the Scouting Program have remained unchanged in their terms, the latter stops being interesting, while the former will only be interesting for attracting traders.

Once the first Private Labels get launched, regulated individuals may sign agreements with them related to attracting investment to the strategies.

cc @naragot

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Thx for marking me. As I have understood the trader with Private Label will be able to hire “partners” who may attract the investors and share performance fees and management fees. Am I right?

And to say I am a bit sad that affiliate income from already attracted investment capital will drop significantly =(