In a strategical shift to become a universal mobile bank useful to everyone, Dukascopy Bank (Dukascopy) steps into wealth management.
From now on, clients of Dukascopy have a really unique opportunity to make money by offering FX and CFD liquidity together with 25 banks providing liquidity to Dukascopy clients.
Statistically, in the long term, these banks providing liquidity will earn half of the market spread. Dukascopy offers to bite off a piece of these bank's business.
Starting from a 1'000 USD minimum investment and upon receiving a management mandate, Dukascopy will automatically start trading for its clients. On the basis of its own technology, the Bank will match sell trades of investors with buy trades of other clients, at the same Ask price, and will match their buy trades with sell transactions of other clients, at the same Bid price. This is the traditional role of all liquidity providers.
The average expected return of this service is 11.15% with a standard deviation of 9.99% which gives a sharpe ratio of 1.11. This service is free of management or performance fees.
Dukascopy also created unparalleled risk management tools by providing investors with unique systems allowing to limit possible losses on their investment. Moreover, as a testimony of trust in its own technology and willingness to satisfy its loyal clients, Dukascopy commits to returning trading commissions in case managed clients would get an annual negative performance after keeping their investment for one year, without withdrawing any funds (full details read here).
The Bank believes that this offer has no equivalent on the market and should satisfy a large clientele. A simple comparison of a sharpe ratio of 1.11 of proposed investment (LP PAMM) with a sharpe ratio of another class of investments shows that Dukascopy proposes investments of a very high quality. The sharpe ratio calculation time-frame was the same. Please see table below.
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ASSET TYPE
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REPRESENTED BY
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TICKER
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SHARPE
|
|
Dukascopy LP PAMM
|
Dukascopy Wealth Management Portfolio
|
|
1.11
|
|
Stocks |
|||
|
S&P500
|
SPDR S&P 500 ETF
|
SPY
|
0.81
|
|
World
|
Vanguard Total World Stock ETF
|
VT
|
0.67
|
|
Developed markets
|
iShares MSCI EAFE ETF
|
EFA
|
0.46
|
|
Emerging markets
|
Vanguard FTSE Emerging Markets ETF
|
VWO
|
0.31
|
|
Bonds |
|||
|
Corporate
|
iShares iBoxx $ Investment Grade Corporate Bond ETF
|
LQD
|
0.38
|
|
Government
|
iShares International Treasury Bond ETF
|
IGOV
|
0.14
|
|
Alternative investment |
|||
|
Real-estate
|
Vanguard Real Estate Index Fund
|
VNQ
|
0.21
|
|
Gold
|
SPDR Gold Shares
|
GLD
|
0.16
|
|
Broad commodities
|
PowerShares DB Commodity Index Tracking Fund
|
DBC
|
-0.05
|
Dukascopy always stays innovative. The next development steps of the Bank include crypto-friendly banking services and fully mobile retail banking services with publicly open chatbot API to welcome artificial intelligence.
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