Darwinex Review 2024

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Darwinex is a UK-based and FCA-regulated brokerage that offers a unique trading experience through its system of user-created index funds. The brand offers opportunities to generate capital through several different channels, from traditional CFD trading to the ‘DARWINs’ seed allocation programme, whereby high-performing custom-created indices will receive a share of the returns created.

This review will explore our experience testing the services offered by Darwinex, providing our opinion on the trading platforms available, fees, assets, and more. We will also cover how to open an investor account and get started with the brand.

Our Take

• This broker offers an innovative take on copy trading, which is done via client-generated, tradeable indices
• The focus on DARWIN indices and relatively high initial deposits make Darwinex a good choice for experienced investors
• Short-term strategies can also be pursued thanks to MetaTrader and VPS support, DMA pricing and tight spreads
• The poor range of educational content and high minimum deposits might put beginners off

Market Access

Invest In DARWINs

The main USP of Darwinex is the option to create and trade user-generated indices. The products are unique strategies developed by Darwinex customers worldwide and available for retail investors to duplicate positions and (hopefully) profit from them. All indices are referred to as ‘DARWINs’, short for Dynamic and Risk Weighted Investments.

These client-created funds are an innovative take on copy trading and we like both the concept and the user-friendly execution. The brand publishes an investors’ index fund with a unique ticker symbol, and all investors will have a performance track-record publication available for retail traders looking for relevant trade ideas. There are currently over 3000 listed investable indices on the platform.

Our team found that the key benefits of trading DARWINs include:

• Can be used to improve portfolio diversification
• Returns may average between 4 and 12% more vs alternative investments
• The model portfolio backtesting tool allows you to assess past P&L of live DARWINs to find over-performing assets
• Index funds offer access to instant liquidity alongside a bespoke ‘Risk Engine’ which highlights potential red flags in real-time

How Does It Work?

The concept is unique, creating some interesting trade prospects for retail investors, and capital generation opportunities for experienced traders. It bears some similarities to copy trading since it allows the retail market to capitalise on the instincts and analysis of experienced traders, but the creation of tradeable instruments is a big departure from the norm that we rate highly.

• Experienced investors will create a unique index fund, made up of a mix of futures, ETFs, and more
• The index fund is listed as an available asset to trade on the Darwinex platforms
• Retail investors will source an index fund to replicate positions
• Asset owners will receive a split of investor fees and potential seed capital (for the best listings)

Alternative Instruments

You don’t have to trade the index funds, as Darwinex also offers 1500+ standard forex and CFD trading instruments. This is a good range of instruments that stands up well to competitors, and we are sure it will provide enough to satisfy most traders – particularly when combined with the DARWIN instruments.

However, it would have been nice to see a few more forex pairs for a more complete range of assets.

• Commodities – Gold, silver, US Crude Oil and Natural Gas
• Stock Indices – 11 global stock indices including AUS 200, S&P 500 and FTSE 100
• Forex – 40+ major, minor, and exotic currency pairs such as EUR/GBP, GBP/AUD, and NZD/USD
• US Stocks – 500+ NASDAQ and NYSE listed company shares including BlackRock, General Motors Company, Nike, and PepsiCo
• ETFs – 100+ US exchange-traded funds such as iShares MSCI Emerging Markets ETF, iShares S&P 500 Value ETF, and iShares Russell 1000 Value ETF

Darwinex Fees

We are pleased to see that Darwinex is transparent with its trading fees, with all information published on its website.  Since the broker’s main focus is its DARWIN products, it makes money from these instruments, as well as from an account maintenance fee:

• Annual Management Fee – 1.2%
• Performance Fee (applicable on net returns only) – 20% (of this, 5% is given to the broker and 15% received by the DARWIN developer)

Retail traders investing in DARWINs will be liable for the same spreads and swaps as if trading traditional assets. We rated the spread charges as competitive, with major forex pairs such as EUR/GBP quoted with a 0.8 pip spread and the FTSE 100 index with a 0.9 spread respectively. DARWIN spread charges will vary depending on the components.

The broker also charges commissions, which vary by instrument – check the website for the latest quotes.

The minimum amount to invest in a DARWIN is 200 units of your account base currency (e.g. £200). There is a maximum investment amount of 100,000 units. You can top up your investment in an existing DARWIN, but note there is a minimum investment amount of £25 to do so.

Accounts

Darwinex offers two trading account options depending on the action you are taking. The CFD Trading Account provides:

• The option to create a DARWIN
• Access to all asset classes including stocks and forex for CFD trading
• The possibility to raise capital from retail investors trading your DARWIN
• Participation options in the DarwinIA challenge with a €10 million prize pool split between the top 150 DARWINs per month

The other account type is the IBKR Stocks And Futures Account (trade stocks and futures listed on Interactive Brokers). It is worth noting that this account has a very high minimum deposit of €10,000.

We were disappointed that there is no swap-free Islamic profile or PAMM account available.

A Professional account is available for eligible clients, offering a reduced fee structure and reduced competition from other Darwinex strategy creators.

How To Open A Darwinex Account

The process to register for a Darwinex account is straightforward and took us around 10 minutes to complete all the steps. Ensure you have your NI number, a copy of an identity document, and proof of residency to hand.

1. Click the ‘Sign Up’ icon on the Darwinex website
2. Complete the online application form by entering your username email address, and password
3. Confirm your country of residency from the dropdown menu and select ‘Sign Up’
4. Complete the online questionnaire by selecting ‘Begin’ on the following page and confirm if you want to open a ‘Trader’ or an ‘Investor’ account
5. From the top of the client dashboard select ‘Request Account’
6. Complete the online registration form (personal details, financial situation, and document upload)
7. Application status (approved or declined) will be provided via email within one working day

Funding Methods

Deposits

Darwinex accepts bank wire transfers, credit/debit cards, and Skrill account funding methods. This is a fairly standard offering, and while we were glad to see the e-wallet option available we would like to see more options from this field, such as PayPal or Apple Pay.

Our review found total deposit caps of £20,000 for credit/debit cards and £5000 for Skrill, and once these limits have been reached you are not permitted to deposit funds with this method anymore. This is disappointing, particularly as they offer instant fund clearance vs up to three working days for wire transfers.

There is a minimum initial deposit amount of £500, which we found expensive compared to eToro, XTB, and XM. It was also a shame to see a subsequent deposit limit of £100 and a high minimum of £500 for bank wire transfers. Fees also apply for some payment types, including a 0.5% charge for Skrill deposits.

Withdrawals

You can withdraw from your Darwinex account using the same payment methods. There is a minimum withdrawal amount of £10 which we thought is reasonable.

On the downside, our experts found a 1% commission fee applies to card and Skrill withdrawals, and wire transfer withdrawals will incur the relevant bank fees.

All methods can take up to three working days to process, which is relatively slow for both Skrill and card withdrawals.

Trading Platforms

We like that Darwinex customers can trade on the MetaTrader 4, MetaTrader 5, or the Interactive Brokers TWS terminal, all of which are popular and highly rated platforms.

However, we were disappointed that there is no proprietary platform, particularly as the brand is so focused on its technology innovations and a bespoke platform could be tailored specifically toward seamless DARWIN creation and trading.

Our team note that to be eligible to create a DARWIN, you must have a live TWS, MT4, or MT5 account open with Darwinex, and log at least one month of trading activity. This is designed to review your trading patterns.

We liked that track records, such as profits and losses achieved on the MetaTrader terminals with other brokerage brands can be imported, and used to boost your credibility on your trader profile.

TWS

The Interactive Broker’s platform is well-established and trusted by thousands of traders worldwide, though it is known to be quite a complex terminal. We found the interface quite overwhelming at first, but the ‘drag and drop’ layout means you can customise your view with portfolio summaries and watchlists.

There are a lot of advanced features available from initial login, including market depth data, in-built technical indicators, and customisable charting.

MetaTrader

If you are looking to trade forex, indices, stocks, ETFs, and commodity CFDs at Darwinex, you will use the MetaTrader 4 (MT4) and MetaTrader 5 (MT5) terminals, which will be available to download after registration.

We rate both MT4 and MT5 as highly sophisticated third-party terminals, which each have advanced charting tools and technical analysis features. Some of our favourite features include access to technical indicators and drawing tools, live news streams, and customisable charts.

MetaTrader is also industry renowned for its automated trading capabilities via Expert Advisors (EAs). You can create custom strategies, signals, scripts, and indicators and set trades to be executed on your behalf according to pre-defined criteria.

Darwinex offers additional automated trade support to complement the MetaTrader 4/5 and FIX API servers, with a library of additional plugins. This includes ZeroMQ Python to MetaTrader Bridge and FIX Pricing and Trading modules.

How To Buy A Darwin

1. Login to your trading platform and browse the available DARWINs
2. When you have found a DARWIN you want to invest in, select the ‘Trade’ icon found on the top right of the screen
3. Add the value you want to invest (minimum £200) and choose the order type
4. Select ‘Buy’
5. Details of your investment will be displayed on the following screen
6. Click ‘Go To Portfolio’ at the bottom of this screen to review your current investments and make changes such as adding risk parameters

Retail investors can place four types of conditional orders when investing in DARWINs: buy stop, buy limit, take profit, and stop loss.

Darwinex Mobile App

We were impressed to see that Darwinex offers a proprietary mobile app, Darwinex For Investors. The app permits retail investors to trade DARWIN indices and monitor portfolio valuation in real-time. We liked the advanced filter tools available within the app, allowing users to quickly browse by performance, peer trader sentiment and other criteria.

MetaTrader 4 and MetaTrader 5 also have mobile app compatibility for iOS and Android (APK) devices. Both mobile terminals offer the full suite of powerful features found on the desktop versions with access to all account management functions, trade execution, chart analysis, custom alerts, and notifications of price shifts.

Leverage

Darwinex offers leverage, which varies by asset class and is limited to a maximum of 1:30 due to FCA regulations. The top rate of leverage is available when trading major forex pairs, with 1:20 on minors, up to 1:20 on indices, up to 1:10 on commodities and up to 1:5 when trading individual stocks.

We were pleased to see leveraged trading opportunities for retail investors to increase their position sizes when investing in DARWINs. The brand offers a maximum 4x leverage value on DARWIN portfolios. It is worth noting that once leverage has been activated it cannot be removed until you close the trade, so ensure you are aware of the potential risks before trading.

The margin call is activated when your trading account equity reaches 100% of the margin. The stop-out trigger is executed if investment losses reach 90% of the client investment value (does not include leveraged position values).

Demo Account

We were pleased to find that Darwinex has gone above and beyond in its provision of demo accounts, with both a standard trading demo profile available on MT4 and MT5, and a useful simulated profile for trading indices.

MetaTrader Demo

Darwinex offers MT4/MT5 demo accounts, similar to many competitors such as Pepperstone and IC Markets. You can choose a virtual balance and our experts were pleased to see GBP account base currency available.

We were also ressured to see pricing conditions, including commission fees, are mirrored between live and demo profiles. The only difference you may experience is slippage, a common price change created by the difference between a quoted price and an execution price.

Demo accounts will not expire, though you must login at least once every 20 days for the account to remain active.

Demo Indices

While testing Darwinex, we rated the brand’s portfolio back-testing tool. This enables investors to view the past performance of individual DARWINs and analyse returns over a set period.

When we used the function, we were able to review gross returns and also net returns after fees. Although this does not guarantee future performance, it is a great trend pattern steer, which can help you decide which asset to invest your capital.

You can also purchase DARWINs in demo mode and follow the returns of a strategy in real time. This makes this feature a real winner in our eyes.

How To Sign Up For A Demo Account

1. From the Darwinex website, choose ‘Access To Markets’ from the top menu and then ‘Platforms And Connectivity’
2. Scroll down the page and click on the ‘Open A Demo Account’ icon
3. Complete the online registration form (choose MT4/MT5 platform, add a name reference, and select a virtual currency and balance)
4. Select ‘Next’
5. On the following page you will need to create a username. Additionally, add your email address, country of residency and create a password
6. Review the T&Cs and select ‘Open Account’

UK Regulation

This broker impressed us with its approach to regulation and security, as it has gone beyond the stringent requirements of the UK regulator.

Darwinex is the trading name of Tradeslide Trading Tech. The brand is authorised and regulated by the Financial Conduct Authority (FCA), license number 586466.

This is the UK’s financial watchdog and is recognised globally as one of the best in class thanks to its stringent joining requirements and financial safeguarding initiatives for customers. This includes the requirement of companies to hold client funds separate from business money and provide negative balance protection.

With FCA regulation, retail investors may also be covered by the Financial Services Compensation Scheme (FSCS) with protection up to £85,000. We were pleased to see Darwinex offers further deposit protection with an additional insurance policy of up to £5 million per client.

Our experts were pleased to find no reports of any major scams or security breaches. We encourage users to add security protection such as 2FA at login.

Bonus Deals

Due to FCA regulation, Darwinex is not permitted to offer financial incentives that encourage bolstered trading behaviours, such as a no-deposit bonus or a welcome reward.

Having said this, the brand does offer a prize pool for the top traders with consistent portfolio performance, and we think this is a nice touch. Not only does it encourage traders to create DARWINs of their own, but it also ensures that there is heightened competition among the DARWIN creators and a simple and effective way to judge which ones are performing well.

The DarwinIA programme rewards individuals with a consistent strategy with monthly seed allocations. Each month, 150 DARWINs are selected to receive allocation funding from the total prize pool (€10 million). This is split by performance ranking and account equity.

Eligibility requirements:

• Must have created a DARWIN index
• Your DARWIN must be open to investment
• Your DARWIN must have a better monthly divergence than -0.5%
• The DARWIN must have less than a 0.8 correlation with alternative DARWINs with a better D-Score

Note, D-Score is the brand’s DARWIN rating scheme using index performance over the last 60-month period. The Darwinex Hall of Fame offers a nice visual of traders who have earned the most in performance fees in the last year.

Extra Tools & Features

We found Darwinex’s extras to be a mixed bag, with some real positives in the blog and the provision of VPS, but some disappointments in the pricing of these servers and the lack of up-to-date educational resources.

Blog & Education

Our experts rated the Darwinex blog highly, offering access to financial news, trade insight articles, and company updates. The ‘Labs’ section does offer some educational content, but we found this lacking, with articles outdated and no option to filter by experience level. It would be good to see some more resources for beginners.

There is also a community forum, with the option to share ideas and discuss trending patterns with like-minded investors.

VPS

The broker has a partnership with an industry-recognised VPS provider, BeeksFX. We were disappointed that there were no complimentary packages, with minimum level connectivity at £20 per month.

Virtual Private Servers offer 24/7 financial market connectivity, with no downtime, and are good for automated trading strategies.

Features and pricing:

• Bronze Package – £20 per month. 25 GB disk space and 1300 MB RAM
• Silver Package – £39 per month. 50 GB disk space and 2700 MB RAM
• Gold Package – £68 per month. 75 GB disk space and 5120 MB RAM

Customer Service

Darwinex customer support is decent, though it was frustrating that the broker did not clarify its availability. You can contact the broker’s customer service team via live chat, email, or UK telephone number.

We felt encouraged that there is a separate emergency contact procedure, designed for instances needing urgent support. This link can be accessed via the ‘Contact Us’ webpage.

• Email – info@darwinex.com
• Telephone – +44(20)37691554
• Live Chat – Icon found bottom right of the broker’s website

You can source additional guidance from the broker’s FAQ page. There is a long list of information available, including step-by-step guides. Topics include how to access historical tick data, causes of positive and negative account divergence, and the impact of Brexit on investment regulations, making this a nice compensation for the lack of educational content.

Company Details & History

Darwinex was founded in 2012, with headquarters in London, UK. The brand provides the technology for experienced traders to offer unique index fund products to a pool of retail investors, alongside a stable exchange to trade forex and CFD instruments.

Today, Darwinex has customers from 80+ countries, including the UK, with over $100 million in assets under management (AUM).

The brand uses a proprietary price aggregation server, which finds the best market conditions and directs orders to this liquidity provider. DMA access is provided to trade the forex, commodity, stock, and index markets.

Trading Hours

Darwinex trading hours vary depending on the instrument you are trading. The MetaTrader 4/5 terminals operate with a GMT +3 server time, (GMT +2 outside of DST). US stocks can be traded Monday to Friday, 9:30 am to 4:00 pm (ET). The majority of indices, including the FTSE 100, are available to trade Sunday to Friday from 6:00 pm to 4:55 pm (ET).

We were pleased to see trading hours by instrument available on the ‘Assets and Spreads’ page of the broker’s website.

Should You Trade With Darwinex?

Darwinex has seen significant growth since its establishment, and we believe the broker’s success is justified. It is a reliable brand for traders looking for strategy-sharing capabilities and investors looking for copy-trading functionality. We like the option to strip back and trade traditional CFD instruments, or participate in the unique DARWIN investments.

The initial minimum deposit is a little high, but the broker does open doors to some very interesting opportunities.

FAQ

Article Sources

Darwinex Website

Darwinex FCA License

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Darwinex Feature Comparison

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