How to migrate to Darwinex?
- 05 Nov 2024
- 4 Minutes to read
How to migrate to Darwinex?
- Updated on 05 Nov 2024
- 4 Minutes to read
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If you prefer to trade with your own funds and not pay Zero's monthly subscription, you can do so by migrating your DARWIN from Zero to Darwinex.
What are the consequences?
- Your DARWIN will be moved from Zero to the Darwinex platform. This does not involve additional monthly payments on Zero, but rather trading with real funds on Darwinex.
- All initial allocations and investors' capital (if any) remain unchanged.
- The entire track-record is migrated, so there are no changes in terms of DarwinIA, ratings, etc.
- If your DARWIN was not yet open to investors, it will automatically be open to investors on the Darwinex platform.
- If you had purchased a permanent allocation, there would be no changes. However, please note that permanent allocations can only be purchased at Zero, so if you want to purchase it, you would have to do so before migrating your account to Darwinex.
Requirements
- Your country of tax residence must be available to open an account with Darwinex*.
- Your DARWIN must have received an allocation or have a minimum return of 2% in the last 5 months
- Migration is only available for the CFD account type
*There might apply restrictions on some countries.
What are the steps to migrate my account?
Register and create an account on Darwinex: You must register and complete the registration process for a real account on Darwinex.
Deposit funds in your Darwinex portfolio: the minimum deposit to continue with the migration is 1000 USD/EUR/GBP.
Start migration: complete the migration request and follow the instructions provided. This action is irreversible, if you initiate migration your Zero subscription will be cancelled.
Close all trades on your signal trading account: make sure that all positions are closed before the weekend, as migrations will take place during the weekend when the markets are closed.
If you have operations open during the weekend, the migration will not be processed and the process will be delayed for the following weekend.
Differences in the balance and leverage have an impact on DARWIN after migration.
The starting balance in your Zero CFD account is $100,000, while the balance in your Darwinex account after migration could be much lower. This could affect the leverage used in the trading account and the replication on the DARWIN.
Let's show this with a couple of examples:
Case 1
- Zero trading account balance: $100,000
- Average lot size on open positions: 1 lot on EURUSD
- Starting balance of Darwinex account: $10,000
In this case, as 1 lot in EURUSD is equivalent to 100,000€ in nominal value, the effective leverage used in Zero is 1:1 (as the balance is 100,000$), ignoring currency differences.
Therefore, to keep the effective leverage stable after migration, with a $10,000 account the trader must open 0.1 lot on EURUSD (10 times less).
Case 2
- Zero trading account balance: $100,000
- Average lot size on open positions: 0.1 lots on EURUSD
- Initial Darwinex account balance: $1,000
However, in this case, the actual leverage before migration would be 0.1 (since 0.1 lots equals €10,000 nominal value on a $100,000 account). Therefore, to keep leverage stable after migration with a $1,000 account, the trader would have to have x100 positions less than 0.1, which would be 0.001.
However, the minimum transaction size is 0.01, so it is not possible in this scenario to keep leverage stable after migration.
Solution? To avoid these major changes in leverage and the impact on the signal account's VaR and replication in DARWIN, you will be asked for the capital you intend to have in the Darwinex trading account:
Based on your answer, our system will understand whether there would be any problem in having such leverage on the new account and, if there is, you will be asked to enter a value:
How does the value work?
You must introduce the difference in leverage that you plan to take initially in the new Darwinex account compared to the Zero trading account.
Following the example above on Case 2, if you were to trade with 0.01 lots, you would have to introduce a 10, as this would be x10 times more leverage.
This would allow our system to adjust the historical VaR of your signal trading account to avoid this large change in leverage and the impact on VaR and DARWIN replication.
By introducing a value of 10, our system will adjust the historical VaR of the signal trading account (for example, imagine the VaR of the signal trading account was around 1%; introducing 10 will change it to 10%) and the Darwin replication will remain stable.
This process is monitored by our team, but please do not hesitate to contact our team at info@darwinexzero.com for further assistance.
Status of Zero account after migration
Your Zero subscription will be cancelled. However, if you wish, you can restart your Zero account to have another new DARWIN in Zero in parallel with the DARWIN migrated to Darwinex.
You don't find the option?
Please note there may apply some regulatory restrictions, so if this option is not displayed in your account, it means the migration is not available in your case.
Need more information?
Please check the following process tutorials:
1. How to migrate your DARWIN from Darwinex Zero to a Darwinex brokerage account:
2. Maintaining leverage with an adjustment when migrating your DARWIN from D-Zero to Darwinex Brokerage:
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