Who is Darwinex?
What is a darwin?
Who is Darwinex?
Darwinex (Tradeslide Trading Tech Limited) is a FinTech with Spanish capital regulated by the Financial Conduct Authority (FCA) in the United Kingdom. Its regulation (one of the most protectionist in the world has the strictest standards) is an important guarantee for both investors and traders.
The FCA is the governing body for 59,000 financial services and financial markets entities in the UK.
The value proposition that Darwinex offers in the financial markets is disruptive and focused, its mission is to put capital in the hands of successful traders who are capable of obtaining reasonable returns and that attract new investors and that growing mass of capital continues to attract to the best traders to close the circle in that way. To achieve this they need to control the entire supply process and are forced to perform several functions:
On the one hand, as a broker, that is, they act as an intermediary between traders and financial markets. Simplifying a lot, we could say that they transfer the buy and sell orders of the traders to different markets (traders are the ones who speculate in the purchase and sale of financial assets). Having its own broker controls the execution and veracity of the traders' data.
On the other hand, they are a capital manager, simplifying a lot also, Darwinex offers:
to investors (not traders):
possibility of investing directly in traders' strategies, in a controlled way (with a limited monthly risk, you can expand this point in [What are the differences between the darwin Xic and its underlying strategy?] and with the guarantees of the FCA, with the objective thus of obtaining an additional profitability to the usual retail investment channels.
guarantee thattrader's results are real, since it is the Darwinex broker who certifies the trader's results.
legal coverage so, without having to set up an investment fund with all the administrative complexity that this entails, that they can attract investment from third parties and be able to legally obtain a fee for success.
the protection of intellectual property of their strategies, patterns or inefficiencies that their operations try to exploit.
With Darwinex, investor:
Has no hidden fees. He only assumes:
A very competitive 1.2% annual management fee on invested capital.
A 20% success commission (performance fee) on profits investor gets on his investment in darwin. 3/4 of this success commission goes to the manager of the darwin and 1/4 part to Darwinex.
Invest insurance, since Darwinex has an insurance policy (as they publish on their website, which covers customer deposits up to £ 1M per user, instead of the £ 85k that the FSCS (Financial Services Compensation Scheme) covers by default).
Can try investing without any cost or risk, they can invest virtual money with no time limit and familiarize theirself with platform, etc. and practice in demo until they gain enough confidence in the DARWIN asset.
You are guaranteed that we are all rowing in the same direction:
Neither the trader nor Darwinex will charge the success commission if the investor does not make a profit.
Darwinex, sets an example, and invests part of its own resources in DARWINs. Every month it allocates up to € 10,000,000 notional to its DARWINs and maintains this investment for 6 consecutive months.
What is a darwin?
Once Darwinex “packages” the trader's strategy with the limit risk it offers (a maximum of 6.5% VaR per month with 95% confidence), Darwinex creates a Darwin.
Darwin thus becomes a fund that replicates the trading strategy of the DARWIN manager with risk management of the Darwinex manager. At this point the Darwin becomes a synthetic asset that can be inverted by anyone, such as an index or a stock.
In the following article https://help.darwinex.com/what-is-a-darwin, Darwinex explains what a Darwin is and how it works.
More detailed information
Extensive all the detailed information in:
I also recommend the following article Understand Equity at Risk and Maximum Risk (Risk Tolerance), where Darwinex explains these concepts.
This website is created to explain in detail What is SMI? and its operation. We recommend you visit it since we have tried to answer the questions that an investor might have. In no case should it be taken as an investment recommendation or as a financial promotion, but rather as an explanation of how the trading activity underlying the darwin SMI works. https://www.darwinex.com/legal/risk-disclaimer / https://www.darwinex.com/legal/investors-agreement
The Darwinex® trademark and the www.darwinex.com domain are owned by Tradeslide Trading Tech Limited, a company authorised and regulated by the Financial Conduct Authority (FCA) in the United Kingdom with FRN 586466. Company number is 08061368 and registered office is Acre House, 11-15 William Road, London NW1 3ER, UK.