How to tell if Dukascopy sucks, page 3 of 7

The attraction

Should you require the services of a forex broker, why would you consider opening a live forex trading account with Dukascopy? Because, on paper, the Dukascopy sales guys make it look like they offer low spreads as well as low commissions.

Example: If you have $25,000 for trading the spot EUR/USD, then, on paper, the Dukascopy spread is only 0.3 pip. And, also on paper, the Dukascopy commission is only $30 per million. Therefore, on paper, the combination of Dukascopy spread and commission is only 0.3 + (1.35 * (3 + 3) / 10) = 1.11 pips per standard lot, per round-trip trade.

The reality

However, despite appearances to the contrary, the Dukascopy reality is drastically different. Because you will owe them 3.33 pips per standard lot, per round-trip trade that you initiate. Why? Because:

Automatically, using highly sophisticated computer software, they open additional, fictitious positions in your name and account. Like as if you opened all of those positions;
They trade against you, using highly sophisticated computer software. And whenever highly sophisticated software tools are used against you, they can and will grab pretty much all of your money. And
When you protest, you find both Herr Dreyer and Herr Ball believe the customer is always wrong. Why? Because they're aggressive and predatory when they deal with customers. Because the lack of their people skills don't stop them. Therefore, once again, I must conclude that Dukascopy sucks.

Example 1

As an experiment, using one of my Dukascopy platforms, I wanted to close a long position I had opened earlier. I had two choices. I had to choose between my platform's "BUY" button and "SELL" button. What would you have done? I clicked on my platform's "SELL" button. However, to my shock and surprise, my long position didn't close. Instead of closing my long position, my Dukascopy platform opened an additional, ficticious short position in my account, like as if I opened that short position. Like as if I intended to open that short position. And I really-really didn't open that short position.

Let's stop for a second and try to understand what happened and why. What we saw here was Dukascopy's refusal to differentiate between selling and short selling. Like as if there was no difference between selling a long position, and opening a brand new short position. This was one of the many dirty tricks in Dukascopy's bag of dirty tricks. Are you beginning to see how easy it is to lose money to Dukascopy? And, from this example alone, can you tell that Dukascopy sucks? ...More >>

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