Switzerland-based online trading company Dukascopy Bank has obtained a Qualified Derivatives Dealer (QDD) status.
Dukascopy Bank became a QDD by entering into an agreement with the United States Internal Revenue Service. As a QDD, Dukascopy Bank is now authorized to make dividend-equivalent payments on US CFD instruments with the relevant amount of withholding tax deducted.
The new status significantly improves the offering for both Trading and Multi-Currency Accounts (MCA) and allows account holders to keep positions over the ex-dividend date and benefit from the US-sourced dividends. The mandatory withholding tax is currently set at 30% while Dukascopy Bank is further working on the improvement of the offering and implementation of the reduced tax rates under double tax treaties.
Dukascopy Bank currently offers over 300 US CFD instruments with the total number of international CFDs exceeding 600 instruments.