Dukascopy Launches CFD Trading on Live Accounts, Pricing Based on SWFX ECN Marketplace
Soruces close to Forex Magnates shared that the next move for the company is to add CFD's on major shares,
Swiss Dukascopy Bank SA has just announced the launch of live CFD trading on its platform. The new instruments will only be available to regular Live self-trading accounts and will be added to already existing platforms. According to the announcement, traders who are willing to obtain access to CFDs on the live environment, should contact their account manager.
For now, the Dukascopy Europe subsidiary of the company is not getting the offering, however, if history is any guide this should only be a matter of time, as previously the firm launched its binary options trading platform with Swiss Dukascopy Bank and later made available the functionality to demo users of its European subsidiary.
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The list of CFDs includes both major brands of crude oil and 8 indices – German DAX 30, French CAC 40, Swiss SMI 20, UK’s FTSE 100, Japanese Nikkei 225, the Dow Jones Industrial Average, the S&P 500 and the leading US-listed tech companies benchmark, NASDAQ.
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Having in mind the low FX volatility which preceded this launch, the company is aiming to diversify its offering and offer better and more trading opportunities to its clients. According to sources close to Forex Magnates, the next move of the company could include the launch of some CFDs on major shares.
The leverage for crude oil trading is 1:30, while the indices come with what has become the industry’s standard 1:100.
The price formation mechanism of the new CFD offering is based on the company’s proprietary SWFX ECN Marketplace competition technology, with Dukascopy acting as a counterpart for each transaction while reserving its right to hedge the CFD contract exposure on other financial markets. In its typical transparency spirit, Live clients of the Swiss bank will be able to request information about the hedging instruments used by Dukascopy.
Dukascopy Bank SA launched CFD trading for demo accounts only two weeks ago.
“… with Dukascopy acting as a counterpart for each transaction while reserving its right to hedge the CFD contract exposure on other financial markets. ”
So Dukas are officially making markets now? Makes you wonder how exclusively STP they are in FX then..
Haven’t they been market makers for some time now before (and during) their ECN offering?
First Miss Dukascopy, then Binaries, now CFDs… Something is wrong. They are loosing focus. This is called desperation, I guess.
Hi Alex,
I wouldn’t call it desperation, but diversification. Most brokers recognized that FX volatility can play nasty tricks and they need to provide alternatives to their fellow traders. Not relying on a solid revenue stream hasn’t been anyone’s plan in this business. The most prudent way to protect a brokerage from low FX volatility is to provide more alternatives to traders (and start educating them about the associated risks).