Editor’s Verdict

Overview

Review

HeadquartersUnited Kingdom
RegulatorsFCA
Year Established2012
Execution Type(s)ECN/STP
Trading Platform(s)Other, MetaTrader 4, MetaTrader 5, Web-based
Islamic Account
Signals
US Persons Accepted?
Managed Accounts

Darwinex, in operation since 2012 and located in the UK, is a technology provider that enables traders direct market access to over 300 assets. Their prime service remains in asset management, allowing traders to invest in thousands of strategies, while also being able to legally gain access to trading capital for a 15% performance fee. An algorithmic risk manager system classifies distinct strategies, each of which is called a DARWIN; the DARWINs are traded in the same manner as any other assets. Every month, Darwinex invests €6 million of its funds into 80 DARWINs (those with the highest returns), for a duration of up to six months. Its prime brokers are Saxo Bank and LMAX, and Darwinex grants a secure trading environment. Overall, the business model is rather new, as evidenced by just over 3,000 traders from over 80 countries. Darwinex paid out over $2.8 million in performance fees and has a promising approach to significantly increase its market share.

Darwinex Review landing page

Regulation and Security

The UK Financial Conduct Authority (FCA) has regulated Tradeslide Trading Tech Limited, the corporate owner of Darwinex, as a broker since 2014. Client deposits remain fully segregated, while the Financial Services Compensation Scheme (FSCS) grants protection up to £85,000. Darwinex has taken out an additional insurance policy, extending total coverage to £500,000. The corporate website features all relevant documents, and the trading environment is secure. Darwinex maintains a clean regulatory track record, providing traders with a transparent, safe, and trustworthy trading environment.

The FCA regulates Darwinex, where it has an exemplary track record.

Darwinex Review FCA regulation

An extended deposit insurance policy, covering deposits up to £500,000, is in place.

Darwinex Review additional deposit insurance

Fees

Traders pay a combination of spreads and commissions on assets, while a performance fee of 20% applies to portfolio management. Given the deep liquidity pool, Darwinex spreads can be as low as 0.0 pips. Forex traders face a commission of 2.5 units of the base currency, so the EUR/USD carries a cost of €2.50, the GBP/USD of £2.50, and the USD/JPY of $2.50. Commodities fees are 0.0025% on the total order value, cryptocurrencies face a 0.15% charge per contract, and equity CFDs cost $0.02 per share. Index CFDs range between $0.275 and £2.75, while the overall cost structure remains competitive. Successful traders and managers will see their costs reduced with the talent-linked pricing awarded by this broker.

Darwinex levies a 20% performance fee on managed portfolios, otherwise known as DARWINs; 15% of the fee is for the portfolio manager and 5% for Darwinex, which maintains the legal framework and services infrastructure. Corporate actions such as dividends and mergers which impact equity and index CFDs are passed on to traders. Swap rates on leveraged overnight positions apply, and charges on deposits and withdrawals, both from Darwinex and its payment processors, exist. An annual inactivity fee of $15 is in place.

Spreads are as low as 0.0 pips, with a competitive commission of 2.5 units of the base currency.

Darwinex Review assets and spreads

Talent-linked pricing further reduces trading costs.

Darwinex Review talent linked pricing

A 20% performance fee applies, of which 15% is for the portfolio manager.

Darwinex Review performance fee

What Can I Trade

Forex traders have access to only 41 currency pairs, which does not provide full market coverage. Four commodities and five cryptocurrencies regrettably fail to provide proper diversification opportunities. Completing the asset selection are 232 US equity CFDs and ten global index CFDs. Darwinex is an equity-focused broker, with the primary asset being more than 2,000 DARWINs to trade. While the overall choice is acceptable, an expansion is required for Darwinex to expand its business model and increase market share.

US equity CFDs comprise the bulk of assets by this UK-based broker.

Darwinex Review US equity CFDs

Over 2,000 DARWINs expand the asset selection, but a significant increase in non-DARWIN-assets is necessary.

Darwinex Review DARWINs explained

Account Types

Darwinex serves all traders from an identical CFD account. There is no up-selling for more significant portfolios, and trading conditions are the same. The minimum initial deposit is $500 or a currency equivalent, while subsequent deposits are possible from $100. Leverage is capped at 1:30 for retail traders, per the European Securities and Markets Authority (ESMA) stipulations, which may change following the end of the Brexit transition period. A professional account upgrade exists for qualifying traders.

Retail traders have an ESMA-restricted CFD account, resulting in a disadvantage as compared to non-EU brokers, though a professional account upgrade is possible.

Darwinex Review professional account info

Portfolio managers remain at the core of operations at Darwinex.

Darwinex Review portfolio manager core ops

Trading Platforms

The Platforms and Connectivity section of the Darwinex website notes the MT4 and MT5 trading platforms. It is important to understand that Darwinex is “a FinTech company authorized and regulated by the Financial Conduct Authority (FCA) in the United Kingdom as a broker and asset manager.” As such, it has developed a range of APIs to deliver auxiliary libraries that complement MetaTrader. It also supplies an API to connect via FIX, and supports traders that use The Zorro Project’s MT4 & MT5 Bridge solutions. No marketing efforts into the trading platform exist, and Darwinex maintains its services platform for asset portfolio management as a core component. Technology and algorithmic trading principal's operating guidelines are well executed and ideal for the MT4 as a starting platform.

Darwinex lists MT4/MT5 as support trading platforms but does not introduce them.

Darwinex Review MT4 and MT5 platforms

A web service provides investors with essential information on DARWINs.

Darwinex Review web service for investors

Trading DARWINs represents a core business element at Darwinex.

Darwinex Review DARWINs as core business element

Unique Features

Darwinex indicates that its primary asset are DARWINs, which are synthetic financial instruments created in-house to mirror the portfolio performance of strategies without actually revealing positions. It offers investors exposure to a vast range of micro-fund managers, who would be unable to enter the sector without the assistance and platform provided and made available at Darwinex. It additionally protects portfolio managers from having strategies and positions, considered the intellectual property of the strategy providers, that remain hidden from the public, copied, or stolen.

The entire ecosystem represents a wholly unique approach to traditional asset management, catering to an emerging market sector geared towards retail traders. Moreover, each month, the top 80 DARWINs share an asset allocation pool worth €6 million, provided by Darwinex, with the amount allocated for a period of six months. Third-party capital management complements the focus on asset management, allowing smaller operations to gain access to capital for a fixed performance fee of 15%. Liquidity aggregation and market connectivity, maintained by Darwinex in a well-regulated trading environment, add value to the already appealing services.

DarwinIA asset allocation awards the top 80 strategies each month.

Darwinex Review DarwinIA asset allocation award

Third-party asset management grants capital to small portfolio managers.

Darwinex Review third party capital

Outstanding liquidity aggregation and market connectivity further support asset management services.

Darwinex Review liquidity aggregation info

Research and Education

Darwinex neither generates in-house research nor provides research through any third-party providers. It relies entirely on portfolio managers to utilize their tools to create market-beating DARWINs; while that is generally an acceptable strategy for investors, it may be less than ideal for traders who need to source relevant information to form for their own trading strategies. What Darwinex lacks in research, however, it makes up for with education. A very comprehensive video library is available alongside written content published under Darwinex Docs. Aside from valuable education content, investors can explore all DARWINs and use the backtesting tool. It is well thought-through, easy to navigate feature, with an emphasis on algorithmic trading and topics most relevant to asset management, as well as how to make the best trading decisions using DARWINs.

The educational section at Darwinex offers a great selection of videos tailored toward algorithmic trading and asset management.

Darwinex Review educational section

Darwinex Docs houses written content, but more general trading related articles would be a welcome addition.

Darwinex Review Darwin Docs

Customer Support

Customer Support Methodsemail-support
Support HoursUnspecified
Website Languages
      • English
      • Spanish
      • French
      • Chinese
  • Operating hours are not listed on the Darwinex website, a rare oversight. However, clients may engage with customer support via e-mail, phone, or web form. An emergency contact form is available to assist with critical issues, such as price streams or trade settlement. Darwinex Docs attempts to address the most basic questions, and most traders are unlikely to require additional support. Overall, Darwinex is a well-managed operation, where the proper explanation of all products and services is available. Assistance can be obtained easily in case of emergencies.

    Darwinex Review customer support

    Bonuses and Promotions

    DarwinIA Capital Allocation represents a prize format, but it differs from trading competitions found at many competing brokers. There are no sign-ups or aggressive demo contests, volume-based incentives, or other counter-productive conditions. Portfolio manager performance evaluations consist of the in-house computed twelve metric D-Score, together with consistency and total return. At the end of each month, the top 80 strategies share €6 million in real capital provided by Darwinex over a period of six consecutive months. Professional traders receive a reduction in trading costs, based on trading volume. There are no bonuses or promotions for retail traders or investors.

    Darwinex invests a monthly prize pool of €6 million across the 80 most successful portfolio managers.

    Darwinex Review Prize format

    Professional traders benefit from a lower cost-structure based on traded volume.

    Darwinex Review professional clients cost structure

    Opening an Account

    A swift online application requires a username, e-mail, and password to complete the initial step. The sign-up process as a trader or investor is identical. Since Darwinex is a regulated entity, account verification is mandatory. A copy of the client’s ID and one proof-of-residency documents usually satisfies required AML/KYC stipulations. Darwinex is a trustworthy, transparent, and compliant broker. Clients can fully trust it with personal information and deposits.

    Clients may register as a trader or as an investor, but the sign-up process is the same.

    Darwinex Review account opening process

    Deposits and Withdrawals

    Deposit and withdrawal options are limited to bank wires, credit/debit cards, Trustly bank transfers for EU-based traders, and Skrill. The minimum initial deposit is $500, or a currency equivalent, reduced to $100 for subsequent deposits. A maximum level applies except for bank wires, and processing times range from instant to three business days. All funds go into a Darwinex Wallet from where they are distributed anonymously to traders and investor accounts.

    The minimum withdrawal amount is $10, but verification may take up to one business day, with a processing time of up to three business days. Bank wires below $500 carry a processing fee of $5, or an account currency equivalent. Skrill deposits face an additional 0.50% cost, while other deposits are free of charge. Withdrawals are charged across the board, depending on the payment method.

    Darwinex supports only a limited range of deposit and withdrawal options.

    Darwinex Review deposit and withdrawal info

    Withdrawals charges apply across all available options.

    Darwinex Review withdrawal charges

    Trading Platform

    MT4
    MT5
    cTrader
    Proprietary Platform
    Automated Trading
    Guaranteed Stop Loss
    Scalping
    Hedging
    OCO Orders
    Interest on Margin

    Summary

    Darwinex offers traders a secure and trustworthy trading environment with a primary focus on retail asset management. Unlike social-trading platforms, the intellectual property of strategy providers remains intelligently protected. It is enabled via the use of synthetic financial instruments, labeled DARWINs, created in-house to mirror the portfolio performance of strategies without revealing actual positions. The business model is appealing, but the asset selection requires an extensive upgrade. Traders have access to raw spreads from 0.0 pips with a competitive commission, and the cost structure supports asset management.

    Technology fulfills an essential role as evident by the FIX API, the ZeroMQ to MetaTrader Connectivity, the Zorro to MetaTrader Connectivity, the Darwin API presently in beta, and free tick data to enhance algorithmic trading solutions. Manual traders will be disappointed at the lack of research, but new retail traders have an asset-management-centric educational portal. Despite being in operation since 2012, Darwinex has attracted only over 3,000 traders, with more than 2,000 strategies. An abundance of untapped potential is present, making Darwinex an exciting broker to follow. It is ideally suited for small asset managers and automated trading strategies, as well as investors seeking a genuine alternative to traditional portfolio management.

    FAQs

    Is Darwinex a scam?

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    No, it is a well regulated and fully compliant entity with the UK Financial Conduct Authority (FCA), maintaining a transparent and trustworthy trading environment.

    What is the leverage at Darwinex?

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    Retail traders are restricted to 1:30 by ESMA rules while professional traders enjoy leverage of 1:50. Investors into DARWINs are allowed 1:3 leverage.

    Is a Darwinex demo account offered?

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    Yes, an unlimited demo account is available.

    What is Darwinex asset management?

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    Portfolio managers can indirectly manage third-party capital for a fixed performance fee of 15%.

    What is the Darwinex minimum deposit?

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    It is $500 or a currency equivalent for the initial deposit, and $100 for subsequent deposits.

    About the Author

    DailyForex.com Team
    The DailyForex.com team is comprised of analysts and researchers from around the world who watch the market throughout the day to provide you with unique perspectives and helpful analysis that can help improve your Forex trading.