The products offered on the Deriv website include binary options, contracts for difference (“CFDs”) and other complex derivatives. Trading binary options may not be suitable for everyone. Trading CFDs carries a high level of risk since leverage can work both to your advantage and disadvantage. As a result, the products offered on the website may not be suitable for all investors because of the risk of losing all of your invested capital. You should never invest money that you cannot afford to lose, and never trade with borrowed money.
Before trading in the complex products offered, please be sure to understand the risks involved.
What is Deriv?
Established in 1999, Deriv is an international online broker headquartered in Malaysia. The company operates under the regulations of five different entities worldwide.
Deriv is known for its diverse offerings, including the popular MT5 platform and a variety of proprietary platforms that grant access to a wide range of assets, such as forex, stocks, ETFs, commodities, indices, and cryptocurrencies. One notable feature of Deriv is its extensive array of deposit and withdrawal methods, which are available in multiple currencies, including cryptocurrencies.
In our assessment, we considered nine key categories: Trust and Stability, Fee Structure, Tradable Instruments, Account Types, Deposit and Withdrawal Options, Research Tools, Customer Support, Educational Resources, and Platforms and Tools.
Who is Deriv For?
Deriv provides a trading platform that caters to the needs of both advanced traders looking to diversify their portfolio with CFDs, options, and multipliers, as well as novice traders who can start trading with deposits as low as $5.
Deriv Regulations
Deriv operates under the regulation of five different entities:
- Deriv (V) Ltd is overseen by the Vanuatu Financial Services Commission and is categorized as a Tier 3 regulator in our assessment.
- Deriv (BVI) Ltd falls under the jurisdiction of the British Virgin Islands Financial Services Commission, also rated as a Tier 3 regulator.
- Deriv (FX) Ltd is subject to regulation by the Labuan Financial Services Authority in Malaysia, and it holds a Tier 2 regulatory rating.
- Deriv Investments (Europe) Limited is regulated by the Malta Financial Services Authority, which has also been rated as a Tier 2 regulator in our evaluation.
- Deriv (SVG) LLC is an unregulated entity incorporated in St. Vincent and the Grenadines.
Stability and Transparency
In our assessment of the Trust category, we thoroughly examine aspects related to stability and transparency. Our focus is on the broker's longevity, company size, and the accessibility of essential information.
Founded in 1999, Deriv stands out as a non-publicly traded entity without a banking parent, which is somewhat uncommon in the brokerage industry. Deriv earned a favorable rating for its transparency regarding fee structures, regulatory safeguards, and overall transparency.
Vital documents can be readily accessed within the terms and conditions section of the broker's website. These documents encompass General terms of use, Trading terms, Funds & transfers, Security & privacy, Risk Disclosure, and Additional terms specific to certain entities.
To gain a comprehensive understanding of the broker's account offerings, prospective clients are encouraged to open a demo account, where account details are presented in an easily digestible format. However, the absence of a user-friendly account comparison table on the broker's website resulted in a moderate rating for fee structure transparency in our evaluation.
In summary, our analysis indicates that Deriv can be considered a trustworthy and stable choice due to the following factors:
- Regulation by Tier 2 and Tier 3 regulatory bodies.
- Over 24 years of industry experience.
- Demonstrated high levels of general transparency and regulatory protection transparency.
Fees
Trading Fees
In our review, we examined the Deriv Financial account, which incurs spreads and swap/rollover fees but does not charge any commissions. The spreads are variable and are contingent on the liquidity conditions of each instrument at specific times.
Deriv Spreads
Our analysis of the Deriv Financial Account's spreads was conducted during the London open at 8:00 a.m. UK time and just after the US open at 2:45 p.m. UK time, which are typically the most active trading periods.
Deriv offers competitive spreads for EUR/USD, GBP/JPY, and Gold. The spreads for Apple, Dax, Dow, and Bitcoin fall in the moderate range, while the spreads for WTI oil and Tesla are on the higher side.
Swap Fees
Our testing revealed that the swap fees for EUR/USD were moderate, whereas the tests for GBP/JPY indicated higher fees compared to industry averages.
Non-Trading Fees
Deriv imposes a dormant account fee of $25 after 12 months of account inactivity, with this fee recurring every six months for as long as the account remains inactive.
Furthermore, the Deriv MT5 real account may be archived if there is no activity for 30 days. To reactivate the account, customers can contact the Help Center, and any pending funds in the Deriv MT5 account will be transferred to the Deriv account.
Are Deriv Trading Fees Competitive? In our assessment, Deriv received an average rating in the Fees category. The broker offers competitive spreads for EUR/USD, GBP/JPY, and Gold.
Deriv Desktop and Web Platforms
In our evaluation, we thoroughly examined the MetaTrader 5 (MT5) platform, assessing its charting capabilities, use of indicators, drawing tools, order types, and overall user-friendliness.
It's worth noting that while Deriv offers the MT5 platform, they also provide several other platforms such as Deriv X, Deriv EZ, SmartTrader, DTrader, Deriv GO, and DBot. In the near future, the broker plans to introduce a copy trading feature for their clients, enabling them to replicate the trading strategies of successful traders.
Deriv MT5 Platform
General User-Friendliness The MT5 platform is a sophisticated trading tool that can be tailored to meet the specific needs of traders. While the interface is relatively intuitive, beginners may find it helpful to seek out tutorials to fully explore MT5's capabilities. Advanced traders should have no difficulty with MT5, but newcomers may need to invest some time in learning the basics of this platform.
Novice traders should familiarize themselves with various chart options, indicators, drawing tools, and order types. They may also need to learn how to create watchlists and manage their trading positions. This learning curve demands some time and effort, but those who invest in it will ultimately gain a powerful tool to enhance their trading performance.
Charts
MT5 offers an extensive array of 97 indicators and supports 21 different timeframes, providing ample flexibility for customizing and adapting charts to individual preferences.
Traders can access various types of indicators, including trend indicators, oscillators, volume indicators, Bill Williams indicators, and custom indicators, allowing them to craft charts that suit their trading strategies.
The available timeframes range from 1 minute to 1 month, offering traders the opportunity to examine both short-term price movements and longer-term trends.
MT5 also features support for various chart objects, including lines, channels, Gann tools, Fibonacci tools, Elliott tools, and shapes. These tools are widely used by traders for making informed decisions and are considered essential in any reputable trading platform.
Each chart can be displayed in different formats, such as bar charts, candlestick charts, and line charts. Candlestick charts, in particular, are popular among traders due to their ability to highlight various patterns used for making trading decisions. However, other chart types also have their dedicated user base.
MT5 charts are accessible to traders of all experience levels, offering a range of options for both beginners and experts.
Order Types
MT5 provides a comprehensive selection of order types, including:
- Market order: Used to buy or sell an instrument at the prevailing market price. This order is employed when a trader needs to establish a position quickly, though it necessitates paying the spread, which is the difference between the bid and ask prices.
- Limit orders: Used to buy or sell an instrument at a specified price or a more favorable one. Limit orders are employed when a trader aims for a specific entry point and is not willing to accept the current market prices.
- Stop-loss orders: Employed to exit a position when the price moves against the trader. These orders are triggered when the price reaches a predetermined level.
- Stop limit orders: A stop-loss order that triggers a limit order rather than a market order when activated. This is a more complex method of exiting a position and is typically used by experienced traders.
- Trailing stop orders: These orders allow traders to set a stop order that adjusts as the open position moves in a favorable direction. Trailing stops are used to protect profits in the event of a market reversal.
Various expiration options are available for all pending orders, including GTC (good-till-cancel), Today, Specified, and Specified Day.
Tradable Instruments
Within its Financial Account, Deriv provides access to a diverse range of trading options, including:
- 38 forex pairs, encompassing well-known pairs such as EUR/USD, GBP/USD, and USD/CAD.
- 13 commodities, allowing traders to speculate on assets like WTI Oil, Brent Oil, Gold, Silver, and more.
- 60 stocks, enabling speculation on popular U.S. and European stock options.
- 31 ETFs, with popular choices like ARKK, DIA, and GLD among the options.
- 11 indices, featuring major indices like Dow Jones, DAX, and Nikkei 225 for trading.
- 43 cryptocurrencies, including popular options like Bitcoin, Ethereum, and Binance Coin.
It's important to note that Deriv also offers options and multipliers in other account types. The abundance of available indices, commodities, and cryptocurrencies is notable. The selection of forex pairs falls within the medium range, while the offering of stocks is comparatively limited.
Customer Support
In our testing, we encountered an issue with the customer support team not responding to one of our inquiries.
Customer Support at Deriv: During our evaluation of Deriv's customer support, we engaged with them through online chat to inquire about account types and swap rates. The support team promptly provided information about the available account types at Deriv. However, our question regarding swap rates remained unanswered, despite multiple exchanges with different support team members. This situation had an adverse effect on the overall score for customer support.
Deposit and Withdrawal
Deriv offers its clients a variety of options for both depositing and withdrawing funds, which includes credit/debit cards, e-wallets, and online banking systems.
One notable feature of Deriv is the extensive range of deposit methods available, and these can be conducted in multiple currencies, including cryptocurrencies.
Furthermore, Deriv does not impose withdrawal fees on its clients. The majority of withdrawal methods are processed within one working day, with the exception of crypto withdrawals, which are subject to internal reviews.
What Account Types does Deriv Offer?
Deriv offers two primary types of accounts, namely the Derived Account and the Financial Account, accessible through the MT5 platform. The Derived Account provides access to Synthetics, Baskets, and Derived FX, while the Financial Account grants access to Forex, Stocks, Stock Indices, Commodities, ETFs, and Cryptocurrencies.
For those who prefer the Deriv X platform, there's the Deriv X Account, which offers an extensive range of options, including Synthetics, Baskets, Derived FX, Forex, Stocks, Stock Indices, Commodities, ETFs, and Cryptocurrencies.
Swap-Free Account
Deriv also provides the option of a swap-free account on the MT5 platform, which does not incur rollover fees. This account type encompasses instruments from both the Derived and Financial accounts, allowing access to synthetics, forex, stocks, stock indices, cryptocurrencies, and ETFs without interest-based charges.
Understanding CFD Leverage
CFD leverage enables traders to open positions by providing only a margin deposit, avoiding the need to pay the full position value upfront. Deriv offers varying levels of leverage, with the highest leverage of up to 1:1000 for accounts opened with Deriv (SVG) LLC, Deriv (V) Ltd, and Deriv (BVI) Ltd. It's important to note that such high leverage levels require careful risk management strategies. Traders with accounts at Deriv (FX) Ltd have access to leverage of up to 1:100, while those with accounts at Deriv Investments (Europe) Limited can utilize leverage of up to 1:30.
Deriv Account Opening Process
Opening an account with Deriv is a straightforward process. Traders can initiate the account opening process by registering with Deriv and accessing the client portal, where they can complete the necessary steps.
To open an account with Deriv:
- Register with Deriv by clicking on the “create free demo account” option on the website's front page.
- Choose the “real” option in the Trader's hub.
- Click on “get” Deriv account.
- Select your preferred account currency.
- Provide your personal details.
- Enter your address information.
- Provide your identity details.
- Agree to the terms of use.
Understanding Demo Accounts: A demo account is a valuable tool that allows traders to test the broker's services and their own trading skills without risking real money. However, it's essential to be aware that trading on a demo account can differ from trading with real money due to the psychological aspects involved. Traders may experience different decision-making processes when real capital is at stake.
While a demo account is excellent for practicing and becoming acquainted with the trading platform, it's advisable not to spend an excessive amount of time on the demo. In the case of Deriv, you can open a demo account by clicking on “Create free demo account.
The Bottom Line
Deriv boasts a longstanding history of over 24 years in the business. The broker operates through five distinct entities, each subject to varying levels of regulation. These entities are Deriv (SVG) LLC, which is unregulated and based in St. Vincent & the Grenadines, Deriv (V) Ltd, regulated by VFSC and classified as a Tier 3 regulator, Deriv (BVI) Ltd, regulated by BVI FSC and also considered a Tier 3 regulator, Deriv (FX) Ltd, regulated by LFSA with a Tier 3 classification, and Deriv Investments (Europe) Limited, which operates under MFSA regulation and holds a Tier 2 status.
Traders are presented with a choice between MT5 accounts and in-house platform accounts. Furthermore, demo accounts are readily available for those who wish to practice their trading strategies before committing to real funds.
Deriv provides access to a wide array of trading instruments, including forex, stocks, commodities, indices, ETFs, cryptocurrencies, options, and multipliers. The account-opening process is accessible to traders with a low entry requirement, as deposits can start as low as $5. Additionally, the broker supports multiple deposit and withdrawal options, accommodating various currencies, including cryptocurrencies.
