Darwinex Takes Curtain off Its DARWIN Exchange Investors Platform

Rebranded as Darwinex from TradeSlide in May, the company pivoted from being an operator of a social trading and trader performance evaluation platform, to a fully regulated FCA firm. Having become a licensed advisor in 2013, from the beginning Darwinex showed its intentions to combine both money management products and trader evaluation within its offering.

Speaking to Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Magnates in the past, and presenting the London Summit last November, the founders related that they viewed money management as an area with coming stricter Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term within the Forex industry. Specifically, based on EU guidelines issued from ESMA in 2012, copy trading was ruled as a money management product, possibly requiring additional forms of licensing from brokers and or trader leaders. For trade leaders and unlicensed money managers benefiting from copy trading programs, licensing requirements are expected to curtail potential profits that they receive for their trading.

To provide a solution for money managers, Darwinex is creating a form of investible approved, or what they call Dynamic And Risk Weighted INvestment (DARWIN). An approved DARWIN is basically an index which customers can invest in, which tracks the trading of strategy creator. Unlike social trading, where copying is allowed of all community members, Darwinex filters for traders who meet their risk and performance requirements. In addition, investors only have access to viewing the index’s performance, without seeing individual traders. The result is that using their financial advisor license, Darwinex acts as the underwriter (for lack of a better term) of the index to its customers, with them having no direct relationship with the money manager.

Having been in development, and the concept pitched to Darwinex customers earlier in the year via emails and webinars, the DARWIN Exchange investors platform is making its first public appearance as the broker announced the demo launch of the product on Friday. Although only in demo, investible money management indexes have shown to have demand from the market. When a similar idea was pitched by PandaTS during the May 2013 IFX Expo in Cyprus, it garnered a positive reaction from attendees who spoke to Forex Magnates about the new product being showcased at the event. Fully developed and operated in beta with a few brokers, the product is expected to go live by the end of the year. For Darwinex though, the index represents a converging of both a traditional brokerage and managed account business model, which is worth watching how it will be accepted by traders and investors.