SWFX Swiss FX Marketplace Technology

Among marketplaces with a centralized structure, Dukascopy gives an access to the first Decentralized Marketplace (SWFX – Swiss Forex Marketplace) combining liquidity of other marketplaces and a number of banks.

The general model above shows the main participants of the business model. Left side includes centralized and decentralized liquidity providers. Combining their bid/offer orders in resulting data feed, the central element is in fact the liquidity pool itself, being at the same time a centralized marketplace for its clients: liquidity consumers and centralized liquidity providers. Liquidity consumers are able to place bid/offer orders. Execution of any order in this decentralized Forex Marketplace, can take place on one of the blue servers – decentralized liquidity providers, or on the red – the centralized marketplace itself. The blue decentralized liquidity provider can be a single bank liquidity provider or any marketplace server.

The SWFX technology is able to monitor each network partner order book to take any opportunity to execute the clients’ orders with better prices and to move them inside our decentralized network as fast as possible. Fluctuations of prices between the network participants make this type of activity very profitable for the clients of Dukascopy, allowing them to enjoy a huge reliable liquidity drawn from all over the globe and the smallest spreads in the industry.

Providing such a marketplace technology, Dukascopy has no exposure risk keeping any positions, as all trades are executed in the network with Forex participants. Dukascopy gives full transparency by providing the clients upon their request, with reports of specific deals to see who the counterparty of the trade is.

Clients' Trading Accounts with Dukascopy can be funded via money transfer, bank guarantee, Standby Letter of Credit or segregated accounts with Swiss Private Banks. The custodian service in partnership with a number of Swiss Banks, allows clients to keep money in their banks while getting credit line to trade in the Swiss FX Marketplace. The custodian service consists of automatic daily settlement of P/L and trades in the client’s bank account. In this case, clients trade directly in the Swiss FX Marketplace from their personal Swiss Bank Accounts, without making funds transfer to Dukascopy.

To cite a couple of clear examples of practical achievements from this technology, Dukascopy would like to mention that every client is able to trade 100 million GBP/USD and 200 million EUR/USD in One Click with effective spreads of 4-5 pips. When trading smaller amounts, one can obtain spreads down to 0.9 pips for EUR/USD and 1.5 pips for GBP/USD currency pairs.

Dukascopy Suisse SA becomes the Swiss local gateway of the decentralized Forex marketplace, being in fact an introducing broker for all liquidity providers in the Marketplace Network.

To become a partner of SWFX (to open an account) please apply to Dukascopy Suisse SA.