I have had a lot of feedback about the Darwinex page on the blog getting a bit too confusing and therefore have decided to slim it down and simplify it. However, I wanted to just copy the original page as it stands, before the ‘refresh’, so that it will be available on the blog in the ‘Darwinex-50Scouts-DarwinIA’ category archive.
If you are familiar with it, please ignore this post ;-) Here it is:
Darwinex is a broker that pairs skilled traders with investor capital, managing everything that revolves around this through a platform that offers a very interesting opportunity for traders who are looking to continually improve performance, operate in a more professional environment and potentially earn additional monies from their trading activity.
Darwinex allows you to legally market your trades for a 15% investor success fee without any of the hassle involved in setting up and getting regulated for a managed accounts business. Furthermore, this is done protecting your intellectual property by never disclosing live trades and in addition, offering you a whole host of analytics, as well as access to a serious investor pool. Basically, you have a lot of upside with no downside, apart from the time you’ll have to invest into understanding what this is all about and setting up your profile/account. Please note that this is very different to what is being done on other copy/mirror-trade platforms and even if some will jump to conclusions and say that it is the same, it simply isn’t; it is worlds apart. This will become very clear to those that actually take the time to understand the whole ‘Broker/Exchange’ offering.
You can link any existing MT4 (live accounts may import their track record) or cTrader account for free, or open a Darwinex account. I prefer the real Darwinex account option for a number of reasons, as they state; this will guarantee outstanding and equal execution standards to all users, optimize replication latency, protect trader intellectual property, prevent track-record forgery and also reward traders for their business. The feedback I have received from a trial group of students confirms what I have experienced myself and keep in mind that if you are serious about investor capital and optimal replication, the in-house option is really a no-brainer. Furthermore, I suspect that execution and commissions will be better than what most retail traders are used to (especially with these account minimum requirements).
The key points to focus on are:
- 100% Legal: FCA (UK) permission provides regulatory cover to participate in investor upside, without sunk costs for regulatory permission or ongoing compliance. They take over those costs so that investors still enjoy MiFID protection.
- Revenue Share: as a regulated asset manager, they charge investors on profits, and reward providers on the basis of the long term profits they create for investors.
- Independent: strategies are rated, ranked, screened and monitored on investor appeal. This makes them more credible with investors than if traders marketed them directly.
- Aligned: as an asset manager, they want investors to make money, not pay execution commissions. They offer competitive 100% NDD/DMA execution. The more investors make, the more they invest and the higher the trader success fee.
- Incremental: nothing stops traders from marketing strategies with other services, PAMM accounts or institutionally. They never disclose identity or their live trades. Again, apart from your time, there is no downside, just upside.
- Professional Environment: no BS, no fairy-tales. You eat what you kill, it’s real not demo, you put your money on your strategies and you are fully accountable for the consequences of your actions.
- Independently managed risk for investors: in addition to rating the strategies, Darwinex manages their risk independently from the trader. All this implies is the levering/de-levering to suit the VaR thresholds. However, if the trader enters risk outside of tolerance, the risk management system will intervene on behalf of investors. This is the biggest plus for investors and possibly the least understood aspect from the trader side but absolutely key for all parties.
- Peace of Mind: no extra burden of having to raise funds, communicate with investors, adjust position sizing, deal with deposits/withdrawals, reporting, etc.
- Improving your trading pays: irrespective of investor volumes, Darwinex independently rewards traders through paying out cash prizes to traders that show the most improved investable attributes.
Again, if you are focused on continually improving performance, wanting to operate in a professional environment and potentially earn additional monies from your trading activity, then this is really a no-brainer.
One thing that I would like to point out is that there is a strong drive to keep on evolving the platform and improving the user experience (both from the investor and trader side) and that therefore, this should be seen as a work in progress, constantly improving platform. I am sure that there will be a lot of people that don’t quite get the concept and/or that will not be willing to invest an hour or so to explore the website/youtube videos but this is not a bad thing. I trust that the right ones will see the potential and understand the benefits of being amongst the first to sign-up and start getting familiar with the whole project, fine-tuning their strategies and establishing their track-records. I will be discussing all these points in a lot more detail in the weekly webinars and other sessions too but keep in mind that if you are really interested, be prepared to take this opportunity seriously; this could really be a game changer on various different fronts.
Where to start? You can sign up directly on the Darwinex homepage or you can sign-up through my link (LINK). It will make no difference to your commissions, executions, etc. However, if you do sign up through 50Scouts, Darwinex will share a small percentage of their commission with me. You can do the math, it’s on the site but not really a game changer ;-). However, in time, this will be put to good use. As usual, part will be used for Giving Back initiatives (LINK) but the main focus will be on 50Scouts traders that meet backing requirements and improving trader performance.
Another key aspect is that apart from giving me the opportunity to back traders running investable strategies in a controlled and professional environment, 50Scouts will allow me to have custom comparable analytics/stats that I will be able to use for current/future students. Furthermore, it will also help me discuss best practices and strategy optimization to attract investor monies in the weekly and other webinar sessions too (LINK).
Please note that only traders that sign up to Darwinex through the 50Scouts link will be considered for backing. Therefore, if you are looking for investor capital, planning to sign up to the weekly webinars, explore the possibility of one-to-one sessions or follow any of my stuff, it would make sense to sign-up through the 50Scouts link. Naturally, you could also sign up just to support the Giving Back causes.
I really think that it would be a shame not to consider this opportunity and as longtime subscribers know, we like to consider ourselves as a family and family members always have priority in what happens next and this will apply to 50Scouts initiatives too. More on this in the future… stay tuned for how this journey develops; this is just the start.
However, just to make sure we are 100% clear on this; we are talking about a serious platform, for serious traders, with realistic expectations. This is not something for gunslingers, get-rich-quick-aficionados and/or storytellers. You don’t necessarily have to be a consistently profitable trader but you have to have the intention of doing things the right way and the Darwinex platform offers you the possibility to do this. Furthermore, remember that through DarwinIA, Darwinex independently rewards traders by paying out cash prizes to traders that show the most improved investable attributes and that strategies can actually perform better on the investor platform than they are doing in the underlying trader account and still pay out performance fees (if I just lost you on the last point, don’t worry, hopefully it will become clearer once you have gone through the materials).
Again, please note that you will not be able to link back to the 50Scouts group if you do not sign up through the link. As discussed, it is absolutely not a requirement but if you plan on possibly being involved with us in the future or just giving back, then it’s a no-brainer, makes no difference at sign-up, just potential upside. Furthermore, please, when choosing your nickname, even if it does say to be creative, I would like to remind interested traders that I would recommend to stick to something neutral/professional…
Unfortunately, due to current money-laundering legislation, Darwinex does not accept funded accounts from citizens of US, Japan, North Korea, Sudan, Syria or the Islamic Republic of Iran. Citizens of these countries can still open demo accounts. Nevertheless, I am confident that they will do their best to try and find a solution, especially as far as the US is concerned, seeing the potential trader pool there and think that it is advisable to start setting up an account and getting familiar with the platform. Always best to be prepared and ready when the time comes ;-).
In closing, the way I would be looking at this is that you have a chance to operate through a Broker/Exchange that has interests that are 100% aligned with yours. Everyone is working towards a common goal and for that goal to be reached, all parties need the ecosystem to operate through low commissions, excellent execution and ever improving strategy performance. All you have to do is to continue to work on your own trading through a platform that will strive to improve on whatever you have been used to in the past, with the added bonus of having the possibility of attracting investor monies without any of the hassle/costs traditionally involved with doing so.
For the visionaries amongst you that are ready to invest some time into understanding what Darwinex, 50Scouts & DarwinIA are all about:
- Darwinex Website > LINK.
- Register through 50Scouts > LINK.
- DarwinIA > LINK.
- Explanatory YouTube Videos > LINK.
- Webinar Recording: Darwinex / 50Scouts Q&A > LINK.
- Webinar w/Juan Colón of Darwinex > LINK.