Changes to the Dukascopy Europe offer following the entry of the ESMA guidelines

customers Dukascopy Europe changes are waiting. On August 1, the date of entry into force of the ESMA guidelines that will apply to the Forex market was established. In addition to the obvious modifications such as the change in the amount of maximum leverage or the Stop-Out rule 50%, the new regulations in the case of the Latvian broker will have several important consequences.

Commission independent of turnover

Dukascopy from the very beginning of its existence runs a comprehensive commission policy, which aims to enable customers to reduce it based on three criteria:

• deposit paid (the sum of all payments is counted),
• deposit on the account (deposit paid + earned profit),
• generated turnover on the account.

Of course, the higher the values ​​in any of the criteria, the commission offered to the client is lower. The pro-client attitude of the broker assumes that regardless of which condition was satisfied first, the trader is always offered the best possible rate in his case resulting from the table of ranges. The range is very wide. The initial commission is 0,0035% of the transaction value, but it can be reduced to as much as only 0,0001% (altogether up to 10 rates).

Unfortunately, after the entry into force of the ESMA guidelines, the last criterion, i.e. due to turnover, must be abolished. Why? The regulator states that investors cannot be encouraged to generate more turnover (where in this case the "incentive" is to be a reduction in commission), as this may result in greater and / or faster losses on their part.

It's hard to say whether, given Dukascopy's pro-customer attitude, this was the motivation for introducing the turnover criterion to the offer. Finally, it can also be interpreted in a second way - a reduction in commission with increasing turnover is a form of reward and appreciation of active customers.

"NO" to bonuses

20 July 2018, or 9 days faster than for all other changes, all bonus programs offered by Dukascopy will end: Equity Bonus, Volume Trading Commission Discount Program and Anniversary Bonus.

All bonuses that were granted before this date will continue to apply until the conditions are met or until they are canceled (by violation of the terms of the regulations).

End of competitions

Dukascopy community (so-called Community) is part of the broker's website, which has evolved strongly over the past years. This is an additional portal aimed at concentrating market participants, integrating them with each other, stimulating the exchange of knowledge and experience, as well as adding an element of entertainment and competition.

Community in its current shape:

• Blissful,
• Messages,
• Video library and TV channel,
• webinars,
• Competitions.

The last element definitely enjoys the greatest interest. And it is something that has always attracted a lot of traders, and more! The annual prize pool is 2 000 000 $, and we can choose up to 25 of various competition categories. In fact, everyone is able to find something for themselves. There are contests available:

• investment - for manual and automatic traders, signal providers, binary options.
• analytical - for technical and fundamental analysts, copywriters, forecasters.
• entertainment - for people who do not specialize in investing, as well as targeting only the fair sex.

With so many categories and cyclicality, it was not difficult to win, which traders from Poland have repeatedly proved.

But in this case, the ESMA regulations reflect their mark. However, the new rules do not exclude the possibility of organizing this type of promotion, but it will no longer be possible to pay out prizes to the real account at Dukascopy Europe.

Partial hedging liquidated

From the very beginning, the Dukascopy platform had solutions that were generally not offered by other Forex brokers. This is exactly what happened with the Margin Call and Stop-Out security mechanisms. With the Stop-Out mechanism, the broker gave traders a choice - Partial Hedge and/ or Total Close. When 200% of leverage was reached, the first option assumed automatic, securing the position through partial hedging, which led to the release of part of the deposit, and at the same time allowed to keep all previously open positions.

After the ESMA changes, the client will no longer have a choice - only the Total Close option will be active, i.e. the standard Stop-Out action assuming the immediate closing of the most losing position.

The moment of entry into force of changes

All the changes described above will become a fact 29 July 2018 (except bonuses not available since 20 July). We would like to remind you that the regulations of ESMA fall on 1 August 2018 of the year and at this moment are to be temporary for a period of three months. Financial supervision assumes the possibility of extending this period by another 3 months, but if you do not decide on it, there is a chance that Dukascopy's offer will return to its original shape.