Complex social investing platform extends its product range
Darwinex has expanded its offering to include indices and commodities, adding a number of products for clients who actively trade contracts for difference (CFDs). The entrant in mirror trading has evolved into an asset management and investing solution for traders. It no longer exposes the individual trades and strategies of the leading asset managers and traders on the platform, instead allowing the public to follow a range of DARWINs (dynamic and risk weighted investments) thathave passed the brokerage’s rigorous testing and verification process. 

One of the most interesting brokers to evolve from copy trading into a unique asset management and investing solution for traders and investors, Darwinex, has announced a set of changes which could make its offering even more appealing.

The brokerage that started as a social trading operator has evolved into a hub where a number of asset managers can share their investment ideas with the community without actually exposing their particular strategies and trades.

Darwinex has created a form of investable approved, or what they call Dynamic And Risk Weighted Investment (DARWIN). The end product is presented to potential investors as an index in which clients can invest their funds only after it passes some rigorous testing and verification by the brokerage.

While in social trading the traders who follow a “leader” are able to copy his/her trades, this isn't the case when using Darwinex. The intellectual property of the asset managers, i. e. their trades and strategies remain concealed from the public and the “investors” in the platform are simply following the performance of a given DARWIN.

The company has a financial advisor license from the U.K. Financial Conduct Authority, vigilantly assessing the risks associated with every strategy to filter the end product for the needs of the traders who choose their risk and performance profiles.

CFDs on Indices and Commodities

After the foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term market developed, a number of brokers began offering traders access to CFDs (contracts for difference) on various indices and commodities. Up until now, Darwinex was left out of this trend due to the challenges associated with managing the risk on an investment in a given index that is not open for trading 24/5.

After overcoming the set of challenges, Darwinex introduced a number of products that cater to the clients who actively trade CFDs. Finance Magnates' reporters spoke to the company’s CEO Juan Colon about the challenges associated with the introduction of the new set of products.

“As such, introducing CFDs trading for a standard broker is reasonably straightforward, it’s merely a question of negotiating the right LP relationships and streaming,” he explained. However, in the case of Darwinex, the company had to come up with creative ways in order to be able to secure the DARWINs using CFDs before providing them to investors.

Elaborating on the challenges related to overcoming additional risks that come with a market that does not operate seven days a week, Mr. Colon explained, “On the one hand there’s the nature of the underlying instrument. The bigger issue is that we use sophisticated Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term algorithms that automatically manage the risk of our investor managed account offering (our DARWINs) to a constant level.”

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“This requires frequent hedging interventions - and these are not possible if markets are not liquid 24/5 - that was the bigger challenge. The good news now is that our technology is now ready to accommodate other instruments with similar characteristics such as futures - which we’ll add to our offering in due course,” he concluded.

The investors now can browse through user profiles and obtain more information about their asset managers

Darwinex also introduced some features which have been in demand by clients for some time, like corporate accounts, a new rebate program which pays back part of the commissions charged to the traders every month and a new visualization of a user’s profile.

Clicking on a trader’s profile now provides access to all of the user's trading strategies, the number of investors he has, and the status of their past performance, etc.

The company has also changed the margin requirements on its MT4 platform with different margin levels applying to different pairs.