Introduction
Choosing the right forex broker can make a significant difference in a trader’s journey. One such broker that has been gaining attention in the forex trading community is Deriv. In this comprehensive review, we will delve into every aspect of Deriv, including its background, trading platforms, features, fees, customer service, and much more.
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.
Background of Deriv
Deriv was established as a rebranded version of Binary.com, a company that had been operating in the financial trading sector since 1999. The rebranding aimed to enhance and diversify the trading experience for its users. Deriv is owned and operated by the Deriv Group, with offices in several locations, including Malta, Malaysia, and the United Arab Emirates.
Deriv is regulated by multiple authorities including the Malta Financial Services Authority (MFSA), the Vanuatu Financial Services Commission (VFSC), and the British Virgin Islands Financial Services Commission (BVI FSC). These regulatory bodies ensure that Deriv adheres to strict guidelines to protect traders’ funds and maintain a fair trading environment.
Trading Platforms
Deriv offers three main trading platforms to cater to different trading styles and preferences:
1. DTrader
DTrader is Deriv’s proprietary trading platform designed for both beginners and experienced traders. It features an intuitive interface with customizable charts, over 50 tradable assets, and a variety of trade types. Users can also take advantage of tools like technical indicators, price alerts, and market news. The platform is web-based, which means you can access it from any device with an internet connection, making it highly convenient.
Key Features:
- User-Friendly Interface: Easy navigation and intuitive design.
- Customizable Charts: Multiple chart types, drawing tools, and indicators.
- Flexible Trade Types: Options like Rise/Fall, Higher/Lower, and Touch/No Touch.
- Real-Time Market Data: Instant access to market prices and trends.
2. DBot
DBot is an innovative platform for automated trading. It allows users to create their own trading bots without any programming knowledge. The platform offers a drag-and-drop interface, pre-built strategies, and a range of performance metrics to optimize and track the bots’ performance. This platform is ideal for traders who want to automate their trading strategies and reduce manual intervention.
Key Features:
- No Coding Required: Build bots using a visual interface.
- Pre-Built Strategies: Ready-to-use strategies for quick setup.
- Performance Tracking: Monitor and optimize bot performance with detailed metrics.
- Backtesting: Test strategies against historical data to refine them.
3. DMT5 (MetaTrader 5)
DMT5 provides access to the popular MetaTrader 5 platform, offering advanced trading tools and features for professional traders. It supports a wide range of assets including forex, commodities, indices, and cryptocurrencies. Features include advanced charting tools, multiple order types, and expert advisors (EAs) for automated trading. MT5 is known for its robustness and is widely used by traders worldwide.
Key Features:
- Advanced Charting Tools: Over 80 technical indicators and analytical objects.
- Multiple Order Types: Market orders, pending orders, stop orders, and trailing stops.
- Expert Advisors (EAs): Automated trading through custom scripts.
- Multi-Asset Platform: Trade forex, commodities, indices, and more.
Account Types
Deriv offers several account types to meet the needs of different traders:
1. Standard Account
This is the most common account type, suitable for both new and experienced traders. It provides access to all trading instruments and platforms with competitive spreads and leverage options. The standard account is versatile and covers a broad range of trading styles and preferences.
Key Features:
- Wide Range of Instruments: Trade forex, commodities, indices, and cryptocurrencies.
- Competitive Spreads: Tight spreads on major currency pairs.
- Leverage Options: Flexible leverage up to 1:1000.
- No Commission: Zero commission on most trades.
2. DMT5 Financial Account
The Financial account on DMT5 offers trading in forex, commodities, and cryptocurrencies with leverage up to 1:1000. It’s ideal for traders looking for a diverse range of assets and high leverage. This account is suitable for those who prefer trading with the advanced features of the MetaTrader 5 platform.
Key Features:
- Access to MT5: Utilize the full capabilities of MetaTrader 5.
- High Leverage: Up to 1:1000 leverage for increased trading power.
- Diverse Asset Classes: Trade a variety of instruments with one account.
- Advanced Trading Tools: Use EAs, custom indicators, and more.
3. DMT5 Synthetic Account
This account type is designed for trading synthetic indices, which simulate real-world market movements. It offers constant volatility, 24/7 trading, and leverage up to 1:1000. Synthetic indices are unique to Deriv and provide a novel trading experience that differs from traditional markets.
Key Features:
- Synthetic Indices: Unique instruments not correlated with real-world events.
- 24/7 Trading: Trade anytime, including weekends.
- Consistent Volatility: Predictable market behavior for strategy development.
- High Leverage: Up to 1:1000 leverage for synthetic indices.
Trading Instruments
Deriv offers a wide range of trading instruments across different asset classes:
- Forex: Trade over 30 currency pairs including major, minor, and exotic pairs.
- Commodities: Access to popular commodities such as gold, silver, oil, and more.
- Indices: Trade on major global indices like the S&P 500, NASDAQ, and FTSE 100.
- Synthetic Indices: Unique indices that simulate real-world market movements with constant volatility.
- Cryptocurrencies: Trade popular cryptocurrencies like Bitcoin, Ethereum, and Litecoin.
Fees and Commissions
Deriv operates with a transparent fee structure. Here are some key points regarding their fees and commissions:
- Spreads: Deriv offers competitive spreads starting from 0.5 pips on major forex pairs. Spreads vary depending on the market conditions and the type of account.
- Commissions: There are no commissions on trades for most account types, except for the DMT5 Financial STP account, which charges a small commission per trade.
- Deposit and Withdrawal Fees: Deriv does not charge any fees for deposits or withdrawals. However, third-party fees may apply depending on the payment method used.
- Inactivity Fees: There is a small inactivity fee charged if an account remains inactive for 12 months or more. This fee is common among brokers and is intended to cover maintenance costs for dormant accounts.
Deposits and Withdrawals
Deriv offers a variety of deposit and withdrawal methods to cater to a global clientele:
Deposit Methods
- Credit/Debit Cards: Visa, MasterCard, Maestro.
- E-wallets: Skrill, Neteller, FasaPay, WebMoney, Perfect Money, and more.
- Cryptocurrencies: Bitcoin, Ethereum, Litecoin, and Tether.
- Bank Transfers: Local and international bank transfers.
Deposits are generally processed instantly, allowing traders to start trading without delay. The minimum deposit amount varies depending on the payment method, making it accessible for traders with different budget levels.
Withdrawal Methods
Withdrawals can be made through the same methods as deposits, ensuring convenience and security for users. Processing times vary depending on the method chosen, with e-wallets and cryptocurrencies being the fastest, typically processed within 1-2 business days. Bank transfers may take a bit longer, up to 3-5 business days.
Deriv also has a policy of processing withdrawal requests within 24 hours, which adds to the efficiency and reliability of their financial operations.
Customer Support
Deriv offers robust customer support to assist traders with any issues or inquiries:
- Live Chat: Available 24/7 for instant assistance. The live chat feature is responsive and provides quick solutions to common problems.
- Email Support: Prompt and helpful responses via email. Traders can expect a response within a few hours for most queries.
- Help Center: Comprehensive help center with articles, FAQs, and tutorials. The help center covers a wide range of topics from account setup to advanced trading strategies.
- Community: Active community forum where traders can share insights and seek help from fellow users. The community is a great resource for networking and learning from experienced traders.
Educational Resources
Deriv is committed to educating its traders, offering a wealth of resources:
- Webinars: Regular webinars conducted by market experts covering various trading topics. These webinars are interactive and provide valuable insights into market trends and trading strategies.
- Tutorials: Step-by-step tutorials for using the trading platforms and understanding different trading strategies. The tutorials are designed to be easy to follow, even for beginners.
- Market News and Analysis: Daily market updates, technical analysis, and economic news to keep traders informed. This information is crucial for making informed trading decisions.
- E-books: Free e-books covering fundamental and technical analysis, trading psychology, and risk management. The e-books are a comprehensive guide to improving trading skills and knowledge.
Security and Regulation
Deriv places a high emphasis on security and regulatory compliance:
- Regulation: Regulated by reputable authorities including MFSA, VFSC, and BVI FSC, ensuring a safe and secure trading environment.
- Segregated Accounts: Client funds are held in segregated accounts, separate from the company’s operational funds. This ensures that traders’ funds are protected in case of any financial instability within the company.
- SSL Encryption: All data transmitted between the client and the platform is encrypted using SSL technology. This protects sensitive information from being intercepted by unauthorized parties.
- Two-Factor Authentication (2FA): An additional layer of security to protect user accounts. Traders can enable 2FA to add an extra level of protection to their login process.
Pros and Cons
Pros
- Wide Range of Trading Platforms: DTrader, DBot, and DMT5 offer something for every type of trader.
- Regulatory Compliance: Multiple regulatory licenses provide a secure trading environment.
- Competitive Fees: Low spreads and zero commission on most trades.
- Educational Resources: Extensive educational materials to support traders at all levels.
- Customer Support: 24/7 customer support with multiple contact methods.
- Flexible Deposit and Withdrawal Options: Various payment methods to cater to global clients.
- Innovative Trading Tools: Advanced features like DBot for automated trading and synthetic indices for unique trading opportunities.
Cons
- Inactivity Fee: Small fee for inactive accounts.
- Limited Research Tools: While educational resources are extensive, in-depth research tools are limited compared to some competitors.
- Geographical Restrictions: Deriv is not available in certain countries, including the USA and Canada.
- Complex Platform Interface: The advanced features of platforms like DMT5 can be overwhelming for beginners.
User Experience
Interface and Usability
Deriv’s platforms are designed with user experience in mind. The interfaces are clean and intuitive, making it easy for traders to navigate and find the tools they need. Both DTrader and DBot are particularly user-friendly, with drag-and-drop features that simplify the trading process.
Mobile Trading
For traders on the go, Deriv offers mobile apps for both iOS and Android devices. These apps provide full functionality of the trading platforms, allowing users to monitor markets, execute trades, and manage their accounts from their smartphones or tablets.
Account Setup
Opening an account with Deriv is straightforward. The registration process is quick, requiring basic personal information and verification documents. Once verified, traders can fund their accounts and start trading immediately.
Market Analysis and Research Tools
Market Analysis
Deriv provides daily market analysis and news updates, helping traders stay informed about market movements and economic events. This information is available directly on the trading platforms and via email alerts.
Research Tools
While Deriv offers essential research tools like technical indicators and charting tools, it lacks some of the advanced research features available on other platforms. However, the educational resources and market analysis provided are sufficient for most traders.
Community and Social Trading
Community Forum
Deriv has an active community forum where traders can share insights, ask questions, and discuss trading strategies. This forum is a valuable resource for both new and experienced traders looking to learn from their peers.
Social Trading
Currently, Deriv does not offer a dedicated social trading platform where users can copy the trades of others. However, the community forum serves as an informal platform for sharing and discussing trading ideas.
Innovation and Technology
Deriv is committed to innovation and continuously updates its platforms to incorporate the latest technology. The introduction of DBot, for instance, showcases their commitment to providing advanced tools for automated trading. Additionally, their synthetic indices offer unique trading opportunities that are not correlated with real-world events, providing a novel way for traders to diversify their portfolios.
Responsible Trading
Deriv promotes responsible trading and offers several tools to help traders manage their risk. These include stop-loss and take-profit orders, as well as educational resources on risk management and trading psychology. By educating traders about the risks involved in trading and providing the tools to manage these risks, Deriv aims to foster a responsible trading environment.
Conclusion
Deriv stands out as a versatile and reliable forex broker, offering a wide range of trading instruments, competitive fees, and multiple trading platforms to suit different trading styles. With its strong regulatory framework, robust customer support, and extensive educational resources, Deriv is a solid choice for both new and experienced traders.
Whether you are looking to trade forex, commodities, indices, or cryptocurrencies, Deriv provides a comprehensive trading environment with the tools and support needed to succeed in the financial markets. The combination of innovative trading platforms, a wide range of instruments, and a commitment to security and regulation makes Deriv a top contender in the forex trading industry.
