Deriv
After being around for two decades, the well-known online broker Binary.com decided to re-brand itself and become Deriv. So, even though the name Deriv has only been around since 2020, this is actually a well-established broker with a lot of experience and 2.5 million trading clients around the world.
The main focus of Deriv is binary options and Contracts for Difference (CFD). In some jurisdictions, the law prohibits binary options from being sold and distributed to retail clients, so the exact offering will vary depending on location and license. If you want to know more about being re-classified from retail trader to professional trader, and which requirements you need to fulfil, please contact the Deriv customer support.
For many retail traders, Contracts for Difference (CFDs) is enough to satisfy their trading needs and it is not difficult to put together a suitable trading strategy using CFDs instead of binary options. You do not need a big bankroll to get started trading CFDs with Deriv and CFDs are available for a wide range of underlying assets and indices with this broker. You can for instance use them to get exposure to forex, commodities and stock indices.
A downside with this broker is that even though the customer support is open 24/7, there is no guarantee that a human will be there to help you. During certain hours, the support is staffed with customer service robots instead.
Is Deriv suitable for small-scale traders?
Yes, many small-scale traders are successfully using Deriv for their trading.
- The smallest trade at Deriv is just $1, which is small enough for many small-scale traders.
- The smallest deposit is just $5. (For certain deposit methods, it is higher).
- At Deriv, there is only one accounts type for all real-money traders. This means that even with you minimal $5 first deposit, you get access to everything. There are no trading instruments or trading tools that are hidden away and only accessible to traders with fat bankrolls.
- Deriv accepts a long list of different deposit and withdrawal methods, so you should be able to find one that suits you and doesn´t cost a lot for you to use. They even accept deposits and withdrawals in Bitcoin using the Bitcoin transaction system (blockchain).
- To promote responsible trading and safeguard traders with limit resources, Deriv has made it easy for you to set limits for your trading activities, e.g. a limit on the amount of money that can be traded or a limit on possible losses within a specific time frame. You can also self-exclude from certain financial products.
Platforms
With a Deriv account, you get access to several trading platforms, including MetaTrader (MT5), DTrader, Deriv X and SmartTrader.
The DTrader platform
This platform is easy to navigate and use for trading, and it comes with 50+ instruments. Unless limited by local legislation, it will including several types of binary options, such as high/low and touch/no touch. The fastest binary options here have a lifetime of just 15 seconds, while the longest possible lifespan is 365 days. The platform comes with a lot of tools for charting and technical analysis.
Mobile apps
With your Deriv account, you´ll get access to the MetaTrader 5 (MT5) mobile app and the Deriv GO mobile app.
Account types
While some brokers offer several different account types, Deriv has made it simple – they use the same account type for all their clients. It doesn´t matter if you are just starting out and completed your first $5 deposit, you will have the same account type as everyone else and have access to everything on the platform, including all the tools for technical analysis.
Account types
Standard Deriv Account: Yes
STP Account: No
ECN Account: No
DMA Account: No
MAM Account: No
PAMM Account: No
LAMM Account: No
Islamic Account: No
Ethical investment account: No
Demat Account: No
Open a free Deriv Demo Account filled with play-money
Just like most serious brokers, Deriv will be happy to give you a free Demo Account filled with play-money. It is a great way to check out what Deriv has to offer without risking any real money in the process. You can use your play-money to trade on the platforms and learn how the various order types and tools work – it is much more fun than reading instruction manuals. After having spent time playing around in a Demo Account, you can make a more informed decision regarding Deriv as a broker and the various trading platforms.
Plus points:
- You don´t have to make a first deposit, not even a minimal $5 one, to open a Demo Account with Deriv.
- Signing up for a free Demo Account with Deriv is very quick and easy, and you only need an email address. You don´t have to prove your ID or anything like that to open a Demo Account with Deriv.
- Even with a Demo Account, you will have access to all platforms and trading tools.
- Deriv does not limit how much play-money you can use.
- Deriv does not limit for how long you can use your Demo Account.
Contracts for Difference (CFDs) at Deriv
With a Deriv account, you will get access to a wide range of Contracts for Difference (CFDs) which you can use to gain exposure to forex, cryptocurrency, and more. The spreads are pretty tight (from 0.5 pips) on some of the major forex pairs.
Minimum contract size is $1.
Commission-free trading is available, but as always, it is important to take a look at the whole situation and pay attention to all costs – not just the commissions.
If you plan on keeping positions open overnight, remember that you will be charged swap rates.
Leverage is available for CFD trading even for Deriv´s retail clients, although in some jurisdictions it will be capped to adhere to applicable laws and licensing rules. When no caps are in place, the largest possible leverage offered for CFD trading at Deriv is 1:1000.
CFD FTSE Spread: From 0.5
CFD GBPUSD Spread: From 0.5
CFD Oil Spread: From 0.5
CFD Stocks Spread: Variable
Forex GBPUSD Spread: From 0.5
Forex EURUSD Spread: From 0.5
Forex EURGBP Spread: From 0.5
Binary options at Deriv
Deriv offers binary options based on a wide range of underlyings, including forex (foreign exchange rates), commodities, stock indices, and basket indices. Minimum contract size is $1.
Examples of available underlyings:
- Well-known stick indices from various geographical markets, such as the S&P500, FTSE100 and GER40.
- Foreign currency exchange rats, e.g. EUR/USD, USD/CAD and AUD/NZD.
- Commodities, including metals and energy. You can for instance speculate on the price of gold, silver or oil.
The basket indices at Deriv makes it easy to speculate on the price of an underlying (e.g. commodities or forex) in relation to a collection of major currencies. You can for instance speculate on the price of gold against a basked of USD/EUR/JPY/GBP/AUD.
Leverage is not available for binary options trading at Deriv, but you can use the Multipliers feature instead. It is similar to leverage, but with a capped downside which helps manage risk for traders. Before you decide to use the Multiplier feature, make sure you understand exactly how it works and how it differs from traditional leverage, since you might need to adjust your trading strategy and risk-management techniques accordingly. In essence, the Multiplier feature will amplify your profits if the market moves in your favour. If the market moves against you, you will lose, but not more than your original (non-multiplied) stake, because an automatic stop-out will activate to prevent further losses.
Derived synthetics
Deriv offers both CFDs and binary options based on derived synthetics. These are indices created to simulate real-market movements. It is very important to remember that it is just a simulation. If you are interested in speculating on derivates based on synthetics, makes sure you understand well what synthetics are and how they work before you commence.
Can I do automated trading with Deriv?
Yes, Deriv permits and encourages automated trading. You can use the pre-programmed strategies you will be provided with, or you can use the nifty tools to build you own customized strategies and put them to work.
- Binary Bot is an automated trading solution for binary options only.
- Dbot is an automated trading solution for a wider range of derivatives.
- Auto trading: Yes, with Dbot and Binary Bot
- Trading signals: Yes, on the MT5 platform
- Social trading: No
- P2P Trading: No
- AlgoTrader: No
- OmniTrader: No
- TradingView: No
- Autochartist: No
- eSignal: No
- Trading Central: No
- AI/Machine learning: No
- Robo Advisor: No
Can I speculate on cryptocurrencies with Deriv?
Yes, indirectly, through financial products. With Deriv, you do not need to actually buy and own cryptocurrencies to get exposure to the exchange rates.
Cryptocurrencies available for speculation: BTC, LTC, ETH, USDC, USDT
Crypto spread: From 0.5
Deposits & withdrawals
Deriv accepts a long list (30+) of different payment methods, including credit/debit cards, bank transfers, e-wallets and Bitcoin transfers. For several of these methods, the smallest permitted deposit in your Deriv account is just $5, so you will not be forced to make a big first deposit (or follow up with big deposits). This is great news for small-scale traders and for people who do not wish to make a big first deposit when they try out a new broker. For Bitcoin deposits, there is no lower limit for deposits.
Another big plus with Deriv is that they do not charge deposit fees or withdrawal fees.
Does Deriv accept bank transfers?
Yes, Deriv accept bank transfers but only for USD. It is a great choice for both big and small transactions.The minimum deposit and withdrawal is just 5 USD, while the maximum deposit and withdrawal is whopping 50,000 USD.
Does Deriv accept debit/credit cards?
Deriv accepts several debit/credit cards – including VISA, MasterCard, Maestro, and Diners Club – for the currencies USD, EUR, GBP and AUD. The minimum for deposits/withdrawals is 10 USD while the maximum is 10,000 USD.
Examples of accepted transaction methods at Deriv
- 1ForYou
- ADVcash
- Airtm
- AstroPay
- Banxa
- Boleto
- Credit Card
- Diners Club
- FasaPay
- JCB Card
- Maestro
- Mastercard
- Neteller
- Paysafecard
- Paytrust
- Perfect Money
- Skrill
- Sticpay
- Trustly
- Visa
- WebMoney
- Wire Transfer
Account currency
Four different currencies are available as account currency with Deriv:
- United states dollar
- Euro
- British pound (sterling)
- Australian dollar
Customer support
- The customer support is only available through live chat and Whatsapp.
- The customer support is open 24/7, but sometimes it is staffed with robots instead of humans.
Regulation
Deriv have offices in many different parts of the world and is licensed by several authorities.
- Malta´s Financial Services Authority (MFSA).
- Deriv BVI Ltd holds a license from The British Virgin Islands Financial Services Commission (BVI).
- Deriv (FX) Ltd holds a license from The Labuan Financial Services Authority (LFSA).
- Deriv (V) Ltd holds a license from The Vanuatu Financial Services Commission (VFSC).
The other three license providers are not considered top-tier when it comes to retail trader protection. If you are able to use Deriv as your broker under one of these licenses, you can expect to be offered binary options and higher leverage.
Questions and answers about Deriv
Does Deriv offer VPS hosting?
No, Deriv does not offer VPS (Virtual Private Server) hosting.
Is Deriv a Market Maker?
No, Deriv is not a Market Maker.
Can I enable 2FA for my Deriv account?
Yes, you can elect to turn on two-factor authentication (2FA) for your account to make it more difficult to log-in.