Our offer

Dukascopy Bank offers a unique opportunity to earn attractive returns by acting as a liquidity provider on its SWFX marketplace in a fully automated mode.

All you need to do is open an account with at least a 1000 USD investment, and grant the management mandate to Dukascopy Bank. Starting from this moment, Dukascopy Bank handles the entire process and gives you real-time updates on the evolution of your invested funds via online reporting.

Statistical calculations carried out for this investment gave the estimated annual return of 11.15% and estimated Sharpe Ratio of 1.11.

How does it work?

Based on its own technology, Dukascopy will automatically match sell trades of investors with buy trades of other clients, at same Ask price, and will match their buy trades with sell transactions of other clients, at same Bid price.

As a result, the investor acts as a liquidity provider similar to institutional market participants on the SWFX. With this service, Dukascopy Bank gives you the possibility to get a share of their income.

Due to the high frequency of trades in the network, liquidity providers are able to capture half of the spread on their trading volume.

What are my risks?

By acting as a liquidity provider, clients under management of Dukascopy Bank get market exposure, and thus their funds are subject to fluctuations caused by market volatility. This side-effect is inherent to the traditional liquidity provider's trading activity. This is why clients entrusting the management of their funds to Dukascopy Bank should accept the high probability of drawdowns and should have an investment horizon no shorter than 1 year. If any client keeps the investment for 1 year, the estimated probability of a negative return is 13% (please see detailed calculation below).

However, in order to limit losses, clients under management can parameter a stop-loss level on their account which would automatically close all positions and stop the trading on their account in case its balance touches (equal or below) the stop-loss level at the end of the trading day at settlement time.

Commission compensation policy

Being devoted to making clients satisfied with Dukascopy Bank's services, the Bank may return commissions charged for provided trading services. For a client to be eligible for commission compensation, the following conditions must be met. Firstly, the client must hold the investment without withdrawals for a period of 260 active trading days. Secondly, the client must get an overall negative performance over the 260 active trading days period. If the said conditions are met, Dukascopy Bank returns commissions charged during the period; up to, but not exceeding the amount of the incurred loss.

The client has a right to suspend their trading to reestimate their trading results and investment risk. Suspended days are not counted as active trading days. Any withdrawal restarts the count of active trading days from 0.

STOP-LOSS and interruption policy

The client is given access to an online button allowing him to deactivate the service (stop trading and close positions) at the next settlement time.

Additionally, the client is provided with a risk management tool (stop-loss functionality) allowing him to instruct the system to automatically stop the trading and to close all positions on his account in case the account balance at the end of the trading day (settlement time) becomes equal or lower than the set stop-loss level. Dukascopy Bank recommends to consider a 15% expected volatility when the client sets their stop loss level (see risk evaluation table below).

LP Pamm Performance since inception

What return can I expect? What do statistics say?

The below figures reflect the results of 10'000 iterations of Monte Carlo simulations based on historical market data between 2015 and 2018. The reading of those figures requires caution since any simulation / back testing is based on some assumptions and contains uncertainty.

Moreover, past performance is no guarantee or promise of future results. Dukascopy Bank accepts no liability in case actual results deviate from given indicative values.

Historical data

Our simulations have been run based on historical market data between January 2, 2015 and June 7, 2018, considering a volume commissions rate of USD 20 per USD 1 million.

Simulation Results

Expected values of the performance parameters:

Parameter Value
Average annual return* +11.15%
Standard deviation of annual return 9.99%
Average Sharpe Ratio** 1.11
  • *Based on 260 trading days in a calendar year.
  • **Relative to zero-return risk-free benchmark.

Evaluation of risk parameters:

Parameter Value
Probability of negative annual return* 13.00%
Probability of triggering a stop-loss within a year*:
-15% level 1.38%
-20% level 0.27%
-25% level 0.02%
  • *Based on 260 trading days in a calendar year.

FEES AND COMMISSIONS

For this service, Dukascopy Bank charges no Management Fees and no Performance Fees. Only volume commissions and overnights are charged for the automated execution of the trades on client's account.

The current Basic Volume Commission rate is 20 USD per 1 USD million of traded volume. Basic Volume Commission is applied for currency pairs trading.

The volume commission rate for precious metals and CFDs on commodities, bonds, cryptocurrencies and indexes is 1,5 time higher than the Basic Volume Commission rate (30 USD per 1 USD million of traded volume).

Dukascopy Bank reserves the right to change the Basic Volume Commission amount between 0 USD and 25 USD per 1 USD million of traded volume at any time at its entire discretion. It affects proportionally the volume commission rate for precious metals and CFDs on commodities, indexes.

Historical log of applied Basic Commission Rate per 1 million traded volume
Since Basic Volume Commission
11/06/2018 USD 25
28/06/2018 USD 20

Trading commissions for single stock CFDs are defined here. Minimal commission will not be applied for LP PAMM accounts.The trading commission on single stocks is not affected by the change of Basic Volume Commission and may be changed by Dukascopy Bank at any time at its entire discretion with announcement here.

Overnights are charged automatically on client's account as per the Advanced Rollover Policy.

Other Conditions

  •  

    Minimum investment — USD 1000

    deposited on an account under your name.

  •  

    Maximum investment

    Dukascopy Bank reserves the right to cap or to reduce the amount of your investment at any time at its entire discretion.

  •  

    Entrance in and exit from the LP PAMM

    Is possible every business day, at settlement time.

  •  

    All figures are rounded to the nearest cent

To learn more about Dukascopy Bank Forex trading platform, SWFX and other trading related information, please contact us: +41 22 799 4888

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