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Dukascopy Bank Receives Qualified Derivatives Dealer Status – Finance Magnates

Dukascopy Bank, a Switzerland-based financial services provider, today announced that the company has secured a Qualified Derivatives Dealer (QDD) status.

According to the official announcement, Dukascopy received the QDD status through an agreement with the US Internal Revenue Service Department. The newly achieved status has enabled Dukascopy to make dividend-equivalent payments on US CFD instruments with the relevant amount of withholding tax deducted.

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Dukascopy is currently offering services in various CFD trading instruments. The financial services provider highlighted the impact of the new status on trading and multi-currency accounts.

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“The new status significantly improves the offering for both Trading and Multi-Currency Accounts (MCA) and allows account holders to keep positions over the ex-dividend date and benefit from the US-sourced dividends. The mandatory withholding tax is currently set at 30% while Dukascopy Bank is further working on the improvement of the offering and implementation of the reduced tax rates under double tax treaties,” the company mentioned in the official announcement.

Dukascopy recently published its annual financial results ending December 31, 2020. The Swiss company reported record income and profits in 2020 as total operating income of the company touched CHF 40.1 million, which is a yearly jump of 43.2 percent. It generated CHF 28 million and CHF 27.4 million in 2019 and 2018, respectively.

Strong Financial Results

Dukascopy posted solid growth in 2020 mainly due to high volatility in international financial markets. During the first half of 2021, the company reported strong revenues as trading activity increased significantly due to the coronavirus lockdown. Dukascopy formed several partnerships in 2020 including a white label deal with the Ukraine-based SICH Bank. In January 2020, Dukascopy expanded its cryptocurrency offering with the addition of Litecoin CFDs. The company accelerated the expansion of its crypto services and launched a stabelcoin “Dukascash”.

“Dukascopy Bank currently offers over 300 US CFD instruments with the total number of international CFDs exceeding 600 instruments,” the company mentioned in the official press release.