Update (June 2017): Seems like Daweda Exchange is going out of business. The following message appears on their website:
“Daweda Exchange Ltd is currently in negotiations to sell its CYSEC license therefore, we are unable to accept new client account registrations or redeposits from existing account holders. If you are an existing client, whether you have a general query or wish to submit a complaint or wish to request for a withdrawal please email us on email@example.com or call our support team on 00357 22275000. Our website will remain operational during the sale process but no longer than the 01st of September 2017. We apologise for any inconvenience this may have caused and our support team remains on standby to deal with your queries.”
Daweda Exchange is not really a broker, but a binary options exchange. Why is this significant? Well, as I explain in my Guidelines for Dealing with Binary Options Brokers, when you trade with regular binary options brokers, you’re trading against the house. When you lose money, your broker makes money. When you make money, the brokers lose. So why would they let anyone win, right? The US regulator, the CFTC, has recognized this fact and has outlawed solicitation of US traders to sign up with brokers such as that. The only US regulated platform for binary options is Nadex, which is actually an exchange. But Nadex is not available outside the US.
That’s where Daweda Exchange comes in. This binary exchange is EU-regulated and they are available in Europe and other countries. And they are a binary exchange so you can trade without worrying if your broker would allow you to withdraw your profits.
So are you interested in a fair, transparent and simple way of trading binary options with no slippage and no conflict of interest? Keep reading.
Daweda Exchange detailed review
Daweda Exchange is the world’s first option marketplace. They started in 2015. Their domain Daweda.com was registered in December 2014. Globally, they are ranked pretty well (#311,245). Most of their traffic comes from Kuwait (almost 40%), Spain (8%) and Turkey (7%). They are also quite popular in France, Germany and the UK.
They have decided to change the unfair terms common to binary options where you play against the brokers. The Daweda Exchange platform allows you to buy and sell options from and to other trades on the platform. Much like the real market. This way you can be sure your broker is not scamming you. They have no incentive to because they don’t lose money, when you win trades. The Daweda Exchange does not intervene in the pricing process on their platform.
Well, if they don’t profit from unsuccessful traders, how do they make money? The Daweda binary exchange charge both the buyer and the seller a low flat $0.50 fee for each contract traded.
Another great benefit in comparison to other brokers is that with Daweda Exchange, returns on your investment are 100%. So if you invest $100 and win, you get another $100. This is a lot more than the usual 60-85% returns that are available with most other binary brokers.
Daweda Exchange Platform
The platform is web-based so as long as you have an Internet device, such as a computer or a mobile phone, you will be able to access the system. No downloads are necessary. For iPhone and Android, they offer an app.
At Daweda binary options exchange when you make a trade you are basically buying from other traders who are selling an asset, or vice versa. You will be trading contracts. Each contract costs $10, so for example if you want to invest $50 in a EUR/USD CALL trade, you would need to buy 5 EUR/USD contracts. This is called an Order Slip. If you want to invest $20 in a gold PUT trade, you would buy 2 gold contracts. If you win, you get back your investment times two, minus the fee. If you lose, you only lose what you invested and the fee. If the hedge button (see below) is available, you can make sure you never lose a trade again.
Available assets include currencies – EUR/USD, AUD/USD, GBP/USD, and USD/JPY, commodities – oil and gold, indices such as NASDAQ and FTSE100 and stocks, such as Barclays and HSBC.
You can trade using a large number of expiries, from 30 and 60 seconds, through 5, 10, 15, 30 minutes to an hour and even longer.
Daweda Exchange allows you to experience their platform for free. It’s very easy to use. They offer a $500 FREE demo!
Daweda Exchange Limited are licensed by the Cyprus Securities and Exchange Commission (CySec license number 289/16). They comply with the European Markets in Financial Instruments Directive (MiFID) guidelines, international Payment Card Industry (PCI) standards, and Anti Money Laundering (AML) regulations.
The Daweda binary options exchange is registered in Cyprus under the Cypriot Companies Law, with registration number HE 343289. Their corporate address is Grigoriou Xenopoulou 24 Nicosia, 1061 Cyprus.
Support is available at firstname.lastname@example.org.
Fax: +357 22262109.
Deposits and withdrawals
Minimum deposit is 100 USD/GBP/EUR. Different methods of deposit are available, such as credit card, bank wire, Skrill and WebMoney.
Withdrawal requests are processed within 24 hours from making the request. You are eligible to make one free withdrawal per calendar month. For an additional withdrawal, you would need to pay $25.
To complete the verification process, you will be asked to provide some documentation when you open an account to enable Daweda to validate the details you have provided, which may include a utility bill (to show your place of residence), a photo ID card (to establish your personal details) and a photo of your credit card (to confirm the source of your funds).
Daweda Exchange offers monthly rebates to clients who trade in high volumes on their platform. The Cashback Plan becomes effective as soon as a real money trading account is set up. The cashback amount you will each month is a function of the age in days of your trading account and the number of contracts traded in the account. You will receive your cashback amount back into your trading account automatically. This is not a bonus. You can withdraw the cashback amount at any time.
Daweda Exchange Order Book
Daweda Exchange offers a real-time orderbook tool that allows you to view all other positions on the platform before taking an informed trading decision. In the orderbook you can see how many buyers and sellers are currently available. In one place you see all current orders on your chosen asset. It’s an invaluable tool for market sentiment analysis, which reflects the supply and demand of the chosen asset concisely and lucidly. Here’s one implication of the order book. If many people are buying an asset at a certain price, it indicates that price is a support level. And vice versa with the resistance.
If you prefer to trade on autopilot, Daweda Exchange provides one of the best auto trading solutions in the binary options industry. At the moment, they require a minimum deposit of $350.
The Hedge option is supposed to allow you to protect your trade for maximum potential results by creating another entry in the Order Book that offsets your position with a counter-trade. You then have two trades and two possible outcomes: winning one trade and losing the other and not losing any money but also not increasing your balance, OR winning two trades and doubling your profits. As soon as your original position is matched, you’ll be given the opportunity to Hedge. Your hedge order will be added to the Order Book and, when matched by another client, will balance your original position and protect your trade.
How do I trade on Daweda?
Let’s look at an example signal. One that was provided on Mike’s manual signals group.
Eur usd call 1.09930 expiry 11:30 and 11:45 gmt
- Choose the base asset. In this case, it would be the EUR/USD currency pair.
- Choose the number of contracts. If you want to invest $10, choose one. If you want to invest $100, choose 10. Every contract costs $10.
- Choose the direction to buy or sell. Our signal is a CALL which means to buy. A PUT signal means to sell. Confirm.
- Click Hedge when available to protect yourself from losing.
- Wait for the trade to expire.
Unfortunately, Daweda Exchange is not available in Japan, Australia and New Zealand. If you’re in one of these countries, I encourage you to read our HighLow review. HighLow is one of the best binary options brokers which are AU-regulated.