Darwinex enables opening of multi-asset CFD DARWIN from single account
Darwinex has decided to allow trading with all CFD assets from the same account, with some conditions.
Until now, DARWIN providers have had two types of MetaTrader accounts at their disposal:
- 1. Forex, index CFDs and commodity CFDs.
- 2. Stock CFDs and ETF CFDs.
Many traders have asked the company about the possibility of trading all these assets from the same account in order to create multi-asset DARWINs. The advantage from the point of view of the DARWIN provider is undeniable, although there were challenges that Darwinex had to consider in order to make the best decision.
After reviewing different options, Darwinex finally decided to allow trading with all CFD assets from the same account, with some conditions.
There are several reasons that have led Darwinex to delay this decision, but the main one was disparity in liquidity between assets. The two groups of assets mentioned at the beginning of this post are very different. Although Darwinex has made a selection of stock CFDs with the highest volume, the fact remains that the liquidity of the less liquid stocks are clearly inferior to that of index CFDs or forex, and this difference is even greater at certain market times.
If up until this point, a DARWIN with investment capital and trading style that results in orders close to a million USD in volume from investors, has only traded forex, but then suddenly decides to take a position in a less liquid stock, it can produce an unexpected slippage for investors. Darwinex seeks to avoid this scenario at all costs, as investors may lose confidence in the DARWIN.
The good part is that if a DARWIN is multi-asset from its inception, the slippage resulting from an increase in investment will be gradual, and consequently, the investor will already be much more aware of the slippage to expect.
Although Darwinex will allow trading in all assets from the same account, due to the reasons explained above, and as a precaution, it will evaluate new DARWINs that reach 100,000 of investment on a case-by-case basis. Those who, up to that point have demonstrated that their strategy can manage multi-asset trading well, will be allowed to continue trading in all assets.
In cases where the strategy has been trading primarily forex, indices or commodity CFDs up to the time of evaluation, Darwinex will most likely, for the reasons described above, disable trading in stock and ETF CFDs.
For the same reason, DARWINs that currently have more than 100,000 invested will not be allowed to trade stock and ETF CFDs. If anyone wishes to waive this restriction, Darwinex will evaluate such requests on a case-by-case basis and encourage traders to contact the company at info@darwinex.com.
All other DARWIN providers have multi-asset trading available from MetaTrader.