Darwinex Zero does not fall under strict regulation, says CEO

Darwinex recently launched the Darwinex Zero trading platform, a unique concept in the industry. The company’s co-founder and CEO, Juan Colón, has now said that this platform does not fit within any regulatory perimeter because of the nature of its offerings.

Darwinex unveils Darwinex Zero

The Darwinex Zero platform offers a service like a prop trading platform. According to Darwinex, the platform claims to be unique in the crowded retail trading industry. According to Colón, no product currently exists in the market that could compete with this product.

“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,” Colón said.

Darwinex Zero offers a subscription-based model where a trader needs to pay a monthly subscription of €38 and a €95 one-off payment when they create an account. The platform will also grant access to over 900 contracts for differences (CFDs) instruments for multiple financial assets such as commodities, forex, and stocks.

This platform plans to expand its offerings by integrating more assets, including cryptocurrencies, futures, spot stocks, and exchange-traded funds (ETFs). It also provides a virtual trading account on MetaTrader 4 and MetaTrader 5.

A trader that wants to use this platform has to prove their skills on the virtual account to obtain seed capital on a tier-based program. During the first stage, the trader will get between €25K and €250K in three months. During the second stage, the traders can obtain €500K in six months. During the third stage, the trader will access external investments, while in the last stage, the traders can market their brands and approach investors.

Does not fall under the regulatory perimeter

Darwinex Zero takes a monthly subscription fee from the traders and does not take client deposits. As such, the platform is not bound to the strict regulatory framework in the financial services industry. The new service offered by this platform is available in countries such as Canada, Europe, Japan, and the United States.

Colón noted that users purchase a technology service with this platform and sell the trading signals. The executive noted that this platform does not take any money from customers and does offer investment advice. As such, the trading activity on this trading platform belonged outside the regulatory perimeter.

Darwinex previously provided retail trading services for financial assets such as margin forex and CFDs. The platform has more than 100 million in assets under management. This platform also offers access to copy trading services where exert investors can share their trading strategies with beginner traders to earn a commission.

This broker supports some of the best-performing expert traders on the legacy copy trading platform, with the seed capital being up to €10 million, with an allocation of six months. The allocation depends on the return performance of strategies, which is not the case with Darwinex Zero.