It seems like prop firms. Their traders trade demo accounts, if I understand it correctly. Their business model is to make money from evaluation fees. 99% traders fail and those who succeed are paid out their share. If they are consistently good the firm starts copying their trades to its own live accounts. Though I still don't really get it how do they have so much money to pay the successful ones their share. It would be a huge money that I am not sure that the evaluation fees money could cover.
IMO this is not the best thread to discuss the difference between Darwinex and prop firms, there are big differences.
Darwinex does not copy trades to own live accounts, I don't know whether they - as a company - invest in Darwins.
I'm sure their business model on Darwinex Zero work for them, based on
- the risk manager cutting extremely high profits by the high VaR calculated on the market commitment
- the majority of allocations are only 30k at DarwinIA SILVER
- no guaranteed allocation in DarwinIA GOLD
- the 15% payout, but only after 3 months after receiving the first allocation and making profit in this period
- the minimum payout of 100 EUR on Darwinex Zero.
There are only 17 out of more than 8.500 Darwins with more than 20% profit in the last 12 months and more than 40% profit in the last 2 years and only 115 with more than 12 % profit last year and more than 24% profit in tha last 2 years.
So most Darwins do not exceed 20% profit per year and less than 1.5 % of all Darwins have a consistent profit in the last 2 years.
To get a regular payout on DarwinIA there should be an average profit of more than 1 % per month (also to pay the fees in Darwinex Zero).
Besides finbou no Darwin provider could live in a European country only from his fees received by Darwinex, I also doubt that it would work for finbou as they are a company with more than one guy.