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Cutlass has more combo moves which I believe can ultimately be added up for more dps, than the dagger. All skills recharge, require activation, no additional purchases (ammo). However it has no range attacks.
Dagger has fewer combo moves, however it also has range attacks.
The range attacks do involve reloading of ammo, these must be purchased.
I've met pirates of all sorts, some are bound to the Cutlass, some the dagger, I think it comes down to a matter of personal preference and fulfillment.
Depending on what your goal is... its a matter of preference and you'll likely end up building both. If you only PVP bound, then its going to be a matter of preference and experience in that arena.
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