Deriv, formerly known as Binary.com, has evolved significantly since its inception in 1999. Rebranded in 2020, Deriv has emerged as a prominent player in the online trading world, offering a wide range of financial instruments and innovative trading solutions. This comprehensive review will delve into various aspects of Deriv, including its regulatory environment, trading platforms, account types, fees, customer support, and educational resources. By the end of this review, you will have a thorough understanding of what Deriv offers and whether it suits your trading needs.
Deriv offers complex derivatives instruments, such as options and contracts for difference (“CFDs”). These products may not be suitable for all customers and trading them puts you at your own risk. Please ensure that you understand the following risks before trading Deriv products:
a) you may lose some or all of the amount invested in the transaction,
b) if your transaction involves conversion currency, exchange rates will affect your profits and losses. You should never trade with borrowed money or with money that you cannot afford to lose.
Company Overview: A Pioneer in Online Trading
Deriv has a long-standing reputation in the financial markets, known for its pioneering approach to trading technology and binary options. The company’s rebranding in 2020 marked a new era of growth and diversification, expanding its product offerings and enhancing its trading platforms.
- Founded: 1999 (originally as Binary.com)
- Rebranded: 2020
- Headquarters: Malta
- Regulation: Regulated by the Malta Financial Services Authority (MFSA) and the British Virgin Islands Financial Services Commission (BVI FSC).
- Trading Instruments: Forex, commodities, indices, cryptocurrencies, synthetic indices
- Platforms: Deriv MT5, Deriv X, Deriv Go
Regulation and Security: Protecting Traders’ Interests
Regulation and security are critical factors when choosing a forex broker. Deriv’s regulatory framework is designed to provide a safe and transparent trading environment for its clients.
Regulatory Status
- Malta Financial Services Authority (MFSA): Deriv operates under the MFSA’s regulations, ensuring adherence to European financial standards. This regulatory body oversees the broker’s operations and ensures compliance with local and international regulations.
- British Virgin Islands Financial Services Commission (BVI FSC): The BVI FSC regulates Deriv’s activities in the British Virgin Islands, providing an additional layer of oversight and regulatory compliance.
Investor Protection Measures
- Segregation of Funds: Client funds are kept in separate accounts from the broker’s operational funds. This segregation ensures that clients’ money is protected and not used for the broker’s operational expenses.
- Negative Balance Protection: Deriv offers negative balance protection, ensuring that traders cannot lose more money than they have in their accounts, even during volatile market conditions.
- Investor Compensation Fund: Depending on the regulatory jurisdiction, Deriv is a member of compensation schemes that provide financial protection in case the broker becomes insolvent.
Trading Platforms: Advanced Tools and Flexibility
Deriv provides several trading platforms, each catering to different trading styles and preferences. The platforms are designed to offer advanced trading tools, real-time data, and a user-friendly experience.
1. Deriv MT5
Deriv MT5 is an advanced trading platform known for its comprehensive features and functionality.
- Advanced Charting Tools: The platform includes a wide range of technical indicators, drawing tools, and customizable chart layouts. These features allow traders to conduct in-depth technical analysis and make informed trading decisions.
- Multi-Asset Trading: Traders can access various asset classes, including forex, commodities, indices, and cryptocurrencies. This multi-asset approach provides traders with diverse trading opportunities.
- Expert Advisors (EAs): MT5 supports automated trading using Expert Advisors (EAs). Traders can use or create custom EAs to automate their trading strategies, enhancing trading efficiency and accuracy.
- Order Types: The platform supports various order types, including market orders, limit orders, and stop orders, catering to different trading strategies and preferences.
- User Experience: MT5 is designed for both novice and experienced traders, with an intuitive interface that balances ease of use with advanced functionality.
2. Deriv X
Deriv X is Deriv’s proprietary trading platform, offering a modern and customizable trading experience.
- Customizable Interface: Deriv X features a highly customizable interface, allowing traders to personalize their workspace according to their trading preferences and needs.
- Real-Time Data: The platform provides real-time market data, news, and analysis tools, ensuring traders have up-to-date information to make informed decisions.
- Integrated Social Trading: Deriv X includes social trading features, enabling traders to follow and copy the strategies of successful traders. This feature is particularly useful for beginners who wish to leverage the expertise of experienced traders.
- Mobile Compatibility: The platform is available on both iOS and Android devices, allowing traders to manage their accounts and execute trades from their smartphones or tablets.
3. Deriv Go
Deriv Go is a mobile trading application designed for traders who prefer to trade on the go.
- User-Friendly Design: Deriv Go features a simple and intuitive design, making it easy for traders to navigate the platform and execute trades from their mobile devices.
- Real-Time Trading: The app provides real-time market data, order execution, and account management features, ensuring traders can stay connected and manage their trades effectively.
- Market Alerts: Deriv Go includes customizable alerts and notifications, keeping traders informed about market movements and important account updates.
Account Types: Tailored for Various Trading Needs
Deriv offers several account types to accommodate different trading preferences and levels of experience. Each account type provides unique features and conditions to suit various trading styles.
1. Standard Account
Standard Accounts are designed for most retail traders and provide access to a broad range of trading instruments.
- Minimum Deposit: $5
- Leverage: Up to 1:1000, allowing traders to control larger positions with a smaller initial investment.
- Spreads: Variable spreads, starting from approximately 0.5 pips for major currency pairs. Spreads may widen during periods of high volatility.
2. Synthetic Indices Account
Synthetic Indices Accounts are specifically tailored for trading synthetic indices, which are unique to Deriv.
- Minimum Deposit: $5
- Leverage: Up to 1:1000
- Spreads: Competitive spreads on synthetic indices, offering traders a unique and flexible trading experience.
3. Professional Account
Professional Accounts are geared towards experienced traders seeking advanced trading conditions and higher leverage.
- Leverage: Higher leverage options, up to 1:1000, providing more flexibility for complex trading strategies.
- Minimum Deposit: Higher minimum deposit requirements compared to standard accounts.
- Spreads: Lower spreads on major and minor currency pairs, offering more favorable trading conditions.
Fees and Spreads: Understanding the Cost Structure
Deriv’s fee structure is designed to be transparent, with various costs associated with trading and account management. It is important for traders to understand these fees to manage their trading expenses effectively.
Spreads
- Forex Spreads: Variable spreads starting from approximately 0.5 pips for major currency pairs. Spreads may increase during periods of high market volatility.
- Synthetic Indices: Competitive spreads on synthetic indices, providing unique trading opportunities with minimal spreads on certain instruments.
Commissions
- Forex and Commodities: Generally, no commissions are charged on forex and commodity trades. Instead, trading costs are incorporated into the spreads.
- Cryptocurrency Trading: Spreads are applied to cryptocurrency trades, with no additional commissions.
Overnight Fees (Swap Fees)
- Swap Fees: Applied to positions held overnight. Swap fees can be positive or negative, depending on market conditions and the asset being traded. Traders should be aware of these fees as they can impact the overall cost of holding positions.
Deposit and Withdrawal Fees
- Deposits: Generally free of charge. Deriv supports various deposit methods, including bank transfers, credit/debit cards, and e-wallets.
- Withdrawals: Withdrawal fees vary depending on the method used. Some methods may incur fees, while others may be free. Traders should review the available withdrawal options and associated costs.
Customer Support: Accessible and Responsive Assistance
Deriv is committed to providing excellent customer support to assist traders with their inquiries and issues.
Support Hours
- Availability: Customer support is available 24/5, covering major trading hours across global markets. This ensures that traders can receive assistance during active trading periods.
Support Channels
- Live Chat: Provides real-time support via the website and trading platforms. Live chat is a convenient option for immediate assistance.
- Email Support: Traders can contact support via email for detailed inquiries or issues that require more in-depth assistance.
- Phone Support: Direct phone support is available in various languages, depending on the region. Phone support offers a more personal touch for addressing complex issues.
Help Center
Deriv maintains a comprehensive Help Center with FAQs, troubleshooting guides, and detailed documentation.
- Knowledge Base: Contains articles and guides on trading strategies, platform features, and account management.
- Tutorials: Includes step-by-step tutorials on using the trading platforms and tools effectively. These resources are designed to help traders get the most out of their trading experience.
Educational Resources: Supporting Trader Development
Deriv is dedicated to helping traders enhance their skills and knowledge through a variety of educational resources.
1. Deriv Academy
Deriv Academy offers structured educational materials to support traders at different levels of experience.
- Trading Courses: A range of courses covering trading basics, technical analysis, and advanced strategies. These courses are designed to help traders build a solid foundation and develop their trading skills.
- Webinars: Live and recorded webinars feature expert insights, trading tips, and market analysis. Webinars provide an interactive learning experience and an opportunity to learn from experienced traders.
2. Market Analysis and News
Deriv provides market analysis and news updates to
keep traders informed about current market conditions and trends.
- Daily Market Updates: Includes market commentary, news, and analysis to help traders stay informed about market movements and economic events.
- Technical Analysis: Offers technical analysis reports and insights to assist traders in making informed decisions based on chart patterns and indicators.
3. Trading Tools
Deriv provides various trading tools to assist traders in their analysis and strategy development.
- Economic Calendar: Displays important economic events and releases, helping traders anticipate market movements based on economic data.
- Trading Calculators: Includes calculators for margin, pip values, and position sizing to assist traders in managing their trades effectively.
Pros and Cons: Weighing the Benefits and Drawbacks
To provide a balanced perspective, here are some of the key pros and cons of trading with Deriv.
Pros
- Regulated Broker: Operates under reputable regulatory authorities, ensuring a secure trading environment.
- Diverse Trading Platforms: Offers a range of platforms, including Deriv MT5, Deriv X, and Deriv Go, catering to different trading preferences and styles.
- Innovative Features: Provides unique trading features such as synthetic indices and social trading.
- Low Minimum Deposit: Allows traders to start with a low minimum deposit, making it accessible for new traders.
- Comprehensive Educational Resources: Offers a range of educational materials and tools to support trader development.
Cons
- Limited Availability of Certain Assets: May not offer as many asset classes as some other brokers, limiting trading opportunities in specific markets.
- Variable Spreads: Spreads can widen during periods of high volatility, potentially increasing trading costs.
- Withdrawal Fees: Some withdrawal methods may incur fees, impacting the overall cost of accessing funds.
Conclusion: Is Deriv the Right Choice for You?
Deriv stands out as a reputable and innovative trading platform, offering a wide range of features and services to meet the needs of various traders. With its strong regulatory framework, diverse trading platforms, and comprehensive educational resources, Deriv provides a robust trading environment for both novice and experienced traders.
Key Takeaways:
- Regulated and Secure: Deriv operates under reputable regulatory authorities, ensuring a secure trading environment with investor protection measures.
- Versatile Platforms: Offers advanced trading platforms, including Deriv MT5, Deriv X, and Deriv Go, catering to different trading preferences and needs.
- Educational Support: Provides extensive educational resources and trading tools to support traders in their development and decision-making.
Ultimately, whether Deriv is the right choice for you will depend on your individual trading goals, preferences, and requirements. It is recommended to explore the platform through a demo account, if available, to experience its features and functionality before committing real funds.
