Dukascopy Bank Secures Qualified Derivatives Dealer Status

Switzerland based retail FX broker Dukascopy announced on Monday thay it has reached an agreement with the U.S. Internal Revenue Service to obtain a Qualified Derivatives Dealer(QDD) status.

According to the official press release, the broker can now make dividend-equivalent payments on US CFD instruments with the relevant amount of withholding tax deducted. The newly achieved status is expected to improve the offering for both Trading and Multi-Currency Accounts (MCA) as well as allow account holders to keep positions over the ex-dividend date and benefit from the US-sourced dividends. 

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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.

As Fazzaco reported earlier, Dukascopy published its annual financial results ending on December 31, 2020​, showing that income and profits hit a record high. Dukascopy recorded a total operating income of CHF 40.1 million, up 43.2% from a year ago. The broker also registered a net profit of CHF 10.4 million, compared to the previous year’s CHF 2.2 million.