Dukascopy - Swiss Forex Bank & Marketplace Business Model
Dukascopy Bank offers a unique and transparent Forex Trading Solution based on two main principles. These two values are the core of the ECN-Marketplace technology:
- Equal trading rights
All clients have equal possibilities to provide and consume liquidity within the ECN - Marketplace.
- Transparent pricing environment
All clients have access to the same liquidity. Each and every client has the same datafeed.
Advantages of the ECN-Marketplace
This ECN - Marketplace represents the advanced generation of liquidity aggregator in the industry. Whilst creating its unique trading environment, Dukascopy Bank has developed the following features:
Dukascopy Bank SA has a unique technology to hedge instantly any clients' trades directly with other Liquidity Providers. Dukascopy Bank is currently connected to Bank Of America, Commerzbank, Nomura, Barclays, Currenex, SEB, Deutsche Bank, JP Morgan, Societe Generale, UBS, Goldman Sachs, Citibank, BNP Paribas, HSBC Bank, HotstpotFXI, Lava - FX All Morgan Stanley and other liquidity providers. All trades are usually executed in milliseconds.
- Low spreads
Dukascopy Bank has integrated liquidity of the world's leading foreign exchange banks and ECNs. Thanks to these numerous banks and service providers, Dukascopy Bank offers the deepest source of liquidity in the industry resulting in tight spreads.
The integration of the world's major banks allows Dukascopy Bank to execute large orders, which can instantly be hedged within the Liquidity Providers' network. For example, clients could trade in one click up to 200 million USD.
Dukascopy Bank gives the opportunity to all clients to access the market depth monitor. This tool provides the traders with information about the market structure for each currency pair. This data allows participants to anticipate the full execution before placing their order.
Each client can place bids/offers in the market. The place bid/ask type orders allow users to act as liquidity providers by placing individual bids and offers right into the market. Bids/Offers are very similar to limit orders and are used to buy or sell a currency at a specified price or better. In addition to limit orders, Bids/Offers have several advantages. As all Bids/Offers are placed directly in the market, they can be taken by other liquidity consumers, thus allowing a trader to avoid a spread cost. Additionally, users can specify the time period (Good Till Canceled/Good For/Good Till) allowed for the system to process the order. All together, these features make Bids/Offers valuable tools for intraday trading.
Dukascopy Bank can add liquidity on top of liquidity provided by external counterparties. As a result, not all and every Client positions are hedged with such external counterparties. The FAQ details how the Client interests are protected.