Darwinex CEO says Darwinex Zero is not under any regulatory purview

Darwinex recently released the Darwinex Zero platform that traders can use to pay a monthly fee and trade using a virtual account. If this platform is successful, Darwinex will offer seed capital to traders and share in the profits.

Darwinex launches Darwinex Zero

The service offered by Darwinex Zero is like the one offered by a prop trading company. However, Darwinex says it is the first platform to extend this service to the retail industry.

The co-founder and CEO of Darwinex, Juan Colón, commented on this development saying, “Darwinex Zero is not a prop trading platform, but the talent scout to our regulated asset management sisters. To the best of our knowledge, there’s no competing subscription-based product that certifies, and seeds track records out there.”

The platform requires that traders pay a one-off payment and a monthly subscription fee. Traders using this platform will access over 900 contracts for differences (CFDs) in forex, commodities, and stocks. The company plans to expand this offering with futures, exchange-traded funds (ETFs), spot stocks, and cryptocurrencies.

Darwinex Zero is available on MetaTrader 4 and MetaTrader 5. This program allows traders to prove their skills through a virtual account, after which they can obtain seed capital through a tier-based program.

According to Colón, this platform will assess traders depending on the “risk-adjusted, sustainable performance” and not the returns. He said that the top managers at Darwinex posted annual returns of between 10% and 20%, and the company was committed to ensuring Darwinex Zero users achieved the same.

Navigating the regulatory framework

Darwinex has regulatory licenses in Spain and the United Kingdom. The company can only operate in the UK and the European Union. However, the regulatory requirements only apply when the platform accepts deposits.

Darwinex Zero only charges traders a monthly subscription fee, and there are no client deposits. The company is also bound by the strict regulatory framework in the financial service sector. The new services offered by the company are available across multiple countries, such as Canada, Europe, Japan, and the United States.

Colón said that users at Darwinex Zero were purchasing a technology service and selling signals. This platform did not take any money from customers or offer investment advice. Therefore, the services offered by this platform were beyond the regulated area. The executive said Darwinex Zero could serve as an appointed representative to the company’s brokerage subsidiaries in areas where it offered regulated services.

The Darwinex Zero platform allows expert traders to trade without risks as they will not use their own capital. These traders will only receive a portion of the returns. Darwinex Zero traders will get a 15% share of the generated return on the seed capital with the traders. Traders using this platform will remain outside the regulated perimeter and concentrate their efforts solely on the market.