Darwinex Review
4.0

Darwinex Review

Darwinex is a forex prop firm with an attractive Two-step challenge. They offer up to $200,000 in funding to traders.

Darwinex is a forex prop firm with an attractive Two-step challenge. They offer up to $200,000 in funding to traders.

Pros
  • Licensed by CNMV and FCA authorities
  • Protection of client funds from abuse and insolvency
  • wide selection of trading tools: Over 500 exchange-traded assets and 950 CFDs
  • Low commission and competitive spreads
  • lower commissions for profitable traders and professional rebates
  • CFD trading via the platforms of MetaTrader 4 and MetaTrader 5
  • Give up to 200 USD, EUR, or GBP to a knowledgeable trader management
Cons
  • $500 USD, EUR, or GBP is the minimum deposit
  • No cent accounts, no commission accounts, no swap-free Islamic accounts
  • Darwinex does not support the trade of digital assets or cryptocurrency transactions

What is Darwinex?

Tradeslide Trading Tech. was founded in 2012 as a technology supplier and then shifted to operating as an FCA-regulated broker under the name Darwinex after two years. The company, based in London with a strong presence in Spain, has broadened its market to serve traders and investors from more than 100 countries, establishing itself as a trustworthy trading supplier.

Darwinex, as a member of an exchange pool, enables connections between parties by providing chances for both investors and traders to participate in swaps. The company offers regulatory coverage with a 20% success fee. Darwinex ensures fair trading conditions and risk management to create a level playing field for all players.

Furthermore, Darwinex participates in proprietary investments, enabling them to efficiently evaluate and oversee their own assets for a duration of six months.

logo of Darwinex

Darwinex Funding Programs and Challenges: Rules and Requirements 

Darwinex provides two distinct trading account choices tailored to various trading activities. The initial option is the CFD Trading Account, which offers the following advantages:

  • Creating a DARWIN
  • Access to a variety of asset types, such as stocks and currency, for CFD trading
  • Opportunity to generate capital from individual investors by trading the DARWIN
  • Engaging in the DarwinIA challenge, which offers a €10 million prize pool distributed among the top 150 DARWINs monthly

The IBKR Stocks and Futures Account is the second type of account that permits trading in stocks and futures available on Interactive Brokers. This account necessitates a somewhat higher minimum deposit of €10,000.

Darwinex does not provide a swap-free Islamic profile or a PAMM account option, which could be disappointing for some customers.

Eligible clients can access a Professional account at Darwinex, which offers a lower price structure and limited competition from other Darwinex strategy designers.

What are Forex Prop Challenges?

Forex prop challenges are a form of evaluation procedure put up by proprietary trading businesses (prop firms) to find exceptional traders and provide them with the opportunity to trade with the firm’s funds. These challenges are intended to put a trader’s capacity to earn profits while properly managing risk to the test, with a set of trading rules and objectives to adhere to over a specific period of time.

A forex prop challenge normally has two primary stages:

1. The challenge phase: During this initial phase, traders are given a demo account with a fixed balance and are asked to meet a certain profit objective within a set timeframe, often a month or two, while adhering to maximum drawdown restrictions and other trading guidelines. This phase evaluates the trader’s capacity to earn profits within specified risk constraints.

2. The Verification Phase: Traders who successfully met their profit objectives and followed the regulations during the challenge phase advance to the verification phase. This stage is similar to the challenge phase, although it often lasts longer and may include somewhat different profit objectives or criteria. The goal of this phase is to confirm the trader’s consistency and expertise across a longer time frame.

After successfully completing both steps, traders are often awarded a funded account. This implies that the prop business sets aside a portion of its funds for the trader to handle. The profit gained by trading this capital is split between the trader and the prop business according to a predetermined split.

Forex prop challenges need a cost, which varies for each prop business. This charge covers the expense of the review procedure and guarantees that traders are committed to the offer.

The particular criteria aims, and structure of prop challenges might differ significantly between businesses. Traders are expected to match the following common parameters:

Profit targets: A predetermined proportion of the account balance that traders must meet.

Drawdown limits: The maximum permissible percentage loss from the account’s peak amount, both daily and cumulatively.

Minimum trading days: The number of active trading days required throughout the challenge period.

Trade style restrictions: Some companies may have regulations about trading strategies, such as forbidding high-frequency scalping or overnight positions.

Aside from the initial challenge fee, forex prop challenges provide traders with access to considerable trading capital without putting their own cash at risk. However, participants must carefully evaluate the terms and circumstances of these challenges, since the criteria established by prop businesses are stringent and intended to test traders’ discipline, risk management, and trading acumen.

You can check out the best forex funded accounts here.

Darwinex Broker: Do They Use a Reliable Platform? 

Darwinex offers clients the option to trade using the MetaTrader 4, MetaTrader 5, or Interactive Brokers TWS terminal, all of which are reputable and dependable platforms. It was surprising to find out that there is no dedicated platform, especially considering the company’s focus on technology progress. A tailored platform may have been created to make the process of creating and trading DARWINs smoother.

To create a DARWIN, traders need a current TWS, MT4, or MT5 account with Darwinex and have traded for at least one month while logged in. This criterion is to assess their trading conduct and trends.

Darwinex Fees: How Much Do They Charge? 

Investors will encounter a 1.2% management charge and a 20% performance fee while evaluating Darwinex’s pricing structure. Initially, the performance fee may appear expensive, but it is crucial to consider the broader perspective. 

Darwinex handles operational management, back-office work, compliance, and other responsibilities similar to those of hedge funds. The fee structure is based on the costs associated with obligations that traders often do not incur when trading with their own cash.

Darwinex provides traders with a net profit of 15% after considering both the performance fee and management fee. Although this percentage may appear lower than anticipated or in comparison to other private trading companies, it is crucial to understand the all-encompassing scope of this 15% net payout. It includes all costs and charges associated with running a trading business, providing an accurate evaluation of the total financial situation.

Thus, Forex prop trading fees refer to the costs associated with participating in a proprietary (prop) trading firm’s program, particularly those that offer traders the opportunity to trade the firm’s capital. These fees are a critical aspect of the business model for many forex prop firms, especially those that run challenge or evaluation programs to vet potential traders. Here’s a breakdown of the types of fees that traders might encounter:

1. Challenge Fees

These are upfront fees paid by traders to enter into a trading challenge or evaluation program. The challenge is essentially a test that evaluates a trader’s ability to generate profits while adhering to specific risk management rules. If successful, the trader is usually offered the opportunity to trade with the firm’s money. Challenge fees can vary significantly depending on the firm, the size of the demo account provided for the challenge, and the complexity of the challenge itself.

2. Account Setup or Administration Fees

Some prop firms may charge a one-time setup fee for creating and managing a trader’s account. This fee might cover the administrative costs associated with setting up the trading infrastructure, account monitoring, and other backend services necessary for the trader to begin trading.

3. Monthly Desk Fees

Desk fees are akin to rental fees for the physical or virtual space and resources (like software, data feeds, and trading tools) provided by the prop firm. While more common in traditional prop firms that offer physical trading desks, some online forex prop firms might also charge a monthly fee for access to premium trading platforms or tools.

4. Profit Split

While not a fee per se, the profit split arrangement is a significant financial consideration in prop trading. After successfully passing a challenge, traders are allowed to trade with the firm’s capital, and any profits generated are split between the trader and the firm according to a predetermined ratio. Common splits might be 70/30 or 80/20, favoring the trader. It’s essential to understand the profit split terms as they directly affect the trader’s potential earnings.

5. Software or Data Fees

In some cases, traders might need to pay additional fees for access to specialized trading software, real-time data feeds, or analytical tools that are not included in the basic package offered by the prop firm.

6. Education or Training Fees

Some prop firms also offer educational courses, mentoring programs, or trading workshops. These might be optional or required parts of the trading program, with fees varying widely based on the content’s depth and duration.

Key Considerations

– Value for Money: It’s crucial for traders to assess whether the fees charged by a prop firm offer good value for the services provided, especially in terms of the trading capital access, technology, and support offered.

– Transparency: Reputable prop firms are transparent about their fee structure, with no hidden charges. Traders should thoroughly review all terms and conditions before committing.

– Risk: While paying fees for a chance to trade with significantly more capital can be appealing, traders should consider the risk of not passing the challenge and the potential loss of the fee paid.

Forex prop trading offers a unique opportunity for traders to leverage more substantial capital than they might otherwise access. However, understanding the fee structure is crucial to making an informed decision about which prop firm to engage with.

Darwinex Proof of Payment:

Traders on Darwinex can withdraw funds using the same payment methods they used for depositing money into their accounts. The minimum withdrawal amount is £10, which our team deems appropriate.

Nevertheless, the specialists have pinpointed some disadvantages. Withdrawals using a card and Skrill include a 1% commission fee, while wire transfer withdrawals will include applicable bank charges. All withdrawal options may require up to three business days to be processed. The processing time is quite sluggish, especially for Skrill and card withdrawals.

Darwinex Customer Support: 

Darwinexoffers satisfactory customer service, although the broker might have been more transparent about its availability. Contact the customer service team through live chat, email, or a UK telephone number. There is also a distinct emergency contact protocol specifically created for immediate help needs, accessible via the ‘Contact Us’ homepage.

To receive email help, contact info@darwinex.com. For telephone support, call +44(20)37691554. Access live chat through an icon located at the bottom right of the broker’s webpage.

Traders seeking extra assistance can consult the broker’s FAQ page. The platform offers detailed information and guides on a wide range of issues, such as accessing historical tick data, analyzing account divergence, and navigating the impact of Brexit on investment rules. This partially makes up for the absence of instructive material.

What Makes Darwinex Unique? 

Darwinex, a UK brokerage registered by the FCA, offers a unique trading experience through its innovative user-created index funds system. The brand offers various ways to generate capital, including regular CFD trading and its ‘DARWINs seed allocation scheme. High-performing custom-created indexes receive a portion of the generated returns in this application.

Darwinex Reviews: What Do Their Customers Say?

On Trustpilot, Darwinex has 4.0 stars out of 5 stars, and a total of 51 customers reviewed them there. They are a verified company on Trustpilot. The company is in an excellent state on this platform.

Darwinex Trustpilot reviews

#1. Jarmin Ugorji mentioned that a reputable broker is FCA-regulated. Additionally, it is the best proprietary trading firm he has ever encountered. No daily reduction in funds, no time constraints, and no unneeded limitations. Darwinex will duplicate the trading strategy while implementing its own risk management techniques. Traders receive funds according to their performance, and there is unlimited possibility for success.

Darwinex reviews Trustpilot

#2. According to Mick, the broker is generally good. However, the leverage on indices is limited to 1:20 for retail clients and a maximum of 1:25 for Elective professional clients. This is a jest!

Darwinex complaints on Trustpilot

#3. Simi Mido states that if there were fewer than one star, he would give it to this huge scam run away. They have stopped responding to me; when traders want to pay for a subscription, it’s immediately; he tried to get allocated with them while paying for three months, and when I’m finally eligible for allocation, they respond that he didn’t, even though he has all the proof he was eligible and he is positive of it; they also refuse to update my account performance. He is going to request a refund, but they refuse, threatening to pursue legal action against them in the UK with every consumer protection organization and court. It was the biggest mistake of my life to trust those scumbags.

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Conclusion

Darwinex is a technology-focused company dedicated to transforming the trading process. They primarily focus on helping traders improve their skills and promoting the exchange of knowledge for potential investors. 

Darwinex unites traders and investors on their platform, providing a transparent trading environment with Direct Market Access (DMA) execution model and transparent pricing. They provide dependable platforms with advanced trading tools and solutions that facilitate intelligent trading chances. Darwinex offers many tools for analysis, strategy improvement, and functional features to meet a wide range of trading requirements.

Account size starts from:
$200,000
Profit Split Up t0 100%
*Choose your account type and start trading

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Fees
4.0
Trading Platforms
4.0
Deposit and Withdrawal
4.0
Customer Support
4.0 Overall Rating

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Darwinex Review
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