Darwinex Labs is the Prop Investing Arm & Quant Team @ Darwinex (www.darwinex.com) - The Open Trader Exchange.
Who we are
Founded in 2012, Darwinex is a Broker, Asset Manager and Technology Provider, authorized and regulated by the Financial Conduct Authority (FCA) in the United Kingdom.
The Darwinex® trademark and the www.darwinex.com domain are owned by Tradeslide Trading Tech Limited, a company duly authorised and regulated by the Financial Conduct Authority (FCA) in the United Kingdom with FRN 586466.
What we do
In our quest to democratize the financial landscape, we’ve:
Engineered the technology necessary to wrap trading strategies as an asset class. The DARWIN asset/wrapper lets investors invest in / trade manager talent, alpha and community sentiment in real-time, while fairly compensating for trader IP.
Eliminated the startup costs and regulatory overhead associated with starting a hedge fund, enabling under-capitalized talent to compete at institutional scale under our regulatory umbrella - the foundation of our Hedge Fund as a Service business model.
Successfully assetized alpha, enabling anyone with access to our community data via the DARWIN API to engineer investment strategies uncorrelated to any other asset class in existence.
We’ve hence created an ecosystem for traders and investors to pool collective talent, information and capital for private and social benefit, one that:
Structurally solves the “manage peanuts, make peanuts” problem faced by under-capitalized talent.
Facilitates merit-driven access to investor leverage with no downside risk.
How we do it
These outcomes have been achieved via our proprietary data wrapper - the DARWIN (Dynamic Asset & Risk-Weighted Investment) asset, that:
Replicates alpha signal in real-time, our algorithmic Risk Manager transforming it to one with a fixed target Value-at-Risk (95% confidence) for investors.
Enables an ‘apples to apples’ comparison of all DARWIN assets listed on our Exchange, asset risk comparable to that of a mid-cap stock.
Encrypts all underlying transactions both historically and in real-time, thus protecting trader IP from compromise and dissemination, enabling fair compensation on a high-water mark basis.
Collects 20% performance fees from investor profits on behalf of the alpha generators providing the signal, and pays the amount to them under our regulatory umbrella.
The DARWIN Exchange
This transaction between traders and investors is **facilitated through our proprietary marketplace - The DARWIN Exchange - an:
Online “Hedge Fund as a Service” for traders to list their strategy/data as tradable DARWINs.
“Liquid Alt Amazon for investors” where investors source talent via a one-stop shop solution including Prime Brokerage, Risk Management and Back-Office
Our technology is bolted on to this Exchange providing traders with regulatory cover to charge a 20% success fee on investor profits.
By doing so, we've built an ecosystem giving traders equal opportunity, where merit alone drives outcomes.
Their interests are aligned with ours, as well as those of fellow traders, pooling our collective talent, information and capital for private and social benefit.
We offer traders a range of platforms, access to our liquidity via FIX and a proprietary API offering (DARWIN API) to trade DARWIN assets on our Exchange.
We strive to deliver the best, most competitive execution conditions at all times, and 100% DMA/STP access to the FX, Stock, Commodity, Index and Crypto CFD markets.