Deriv offers clients a number of proprietary and synthetic asset trading solutions, including a wide range of CFDs. Deriv has a commission-free cost structure and its website lists exchange-free trading for everyone. The four derived principles are reliability, fairness, transparency and accountability.
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.
| Headquarters | Malaysia |
|---|---|
| Regulators | BVIFSC, LFSA, MFSA, VFSC |
| Founded year | 1999 |
| Execution type | Market Maker |
| Minimum deposit | 5$ |
| Trading platforms | MetaTrader 5, Proprietary Platform, Website |
| Minimum spread | None |
| Standard spread | 0.5 pip |
| Minimum commission fees | None |
Regulations and Security
Trading with a regulated broker limits the potential for fraud and mistakes. I always recommend traders to check the regulation and verify it with the regulator by checking the license provided with their database. Deriv presents clients with four regulated entities that maintain a secure trading environment.
Is Deriv legit and safe?
Deriv has more than 20 years of operating experience and in addition to the above four subsidiaries, it also operates an uncontrolled but duly registered subsidiary in St. Vincent and the Grenadines, Company No. 273 LLC 2020, while a company registered in Guernsey, Deriv Holdings (Guernsey) Limited, is the holding company for all five derivatives operating subsidiaries. Negative balance protection exists for derivatives and derivatives accounts that segregate all client deposits from company funds.
A €20,000 customer compensation fund exists through membership with the Hong Kong-based Financial Commission. Deriv also lists its group of companies transparently on its website. I rate deriv highly due to its approach to customer security with a business-friendly regulatory touch, ensuring traders have a legitimate, safe and competitive trading environment.
Trading fees
| Average transaction costs EUR/USD | 0.6 pip |
|---|---|
| Average transaction costs GBP/USD | 0.7 pip |
| Minimum spread | None |
| Standard spread | 0.5 pip |
| Minimum commission fees | None |
| Deposit fees | None |
| Withdrawal fees | None |
Trading assets
The range of assets at Deriv includes forex, synthetics, basket indices, derived FX indices, equity CFDs, index CFDs, cryptocurrencies and commodities. I like the 57 currency pairs and 31 cryptocurrency pairs, as they offer a wide selection in each area. Synthetics provide a highly regarded alternative. Commodity, equity and index traders get a sub-par selection of highly liquid assets without the necessary diversification opportunities, but they are sufficient for traders start. Overall, Deriv asset selection is balanced and I can recommend it to most traders.
Leverage
Forex traders get maximum leverage at 1:1000 and cryptocurrencies at 1:100. Commodities max at 1:500, indices at 1:100, while equity CFD traders Owners benefit from 1:50. Some trade in aggregate with a maximum leverage of 1:4000. I appreciate the competitive approach of leveraged trading, ideal for advanced traders. Negative balance protection exists for derivatives accounts, meaning traders can never lose more than their deposit. Derivative leverage depends on the geographical location of traders and the regulatory environment. While traders can manage their portfolios with a competitive edge, they should implement proper risk management to avoid exaggerated trading losses.
Account types
Deriv notes three account types, but the details are in the community section rather than being transparent on its website. The Deriv Financial Account is a standard CFD account, the Deriv Derivatives account provides traders with access to synthetic and deriv swap-free accounts - note that this may be suitable as an Islamic account, which is a non-swap account. Traders can open sub-accounts. The minimum deposit starts from $5 and there is an increase in better trading conditions for higher deposits, which I appreciate. A volume-based discount would be great but is missing at Deriv, however, I like the overall offering.
Demo account
Deriv only requires traders for a valid e-mail address to open a demo account. After clicking the verification link, traders must confirm their residence and Deriv opens a $10,000 demo account. There are no time restrictions on the demo account if traders use it. Deriv will delete inactive MT5 demo accounts after 30 days of hibernation.
I would like to caution beginner traders against using demo trading as an educational tool and that they should consider the limitations. Demo trading does not allow exposure to trading psychology and can create unrealistic trading expectations.
Trading platforms
Besides the out-of-the-box MT5 trading platform, available as a desktop client, web-based alternative and mobile app, supporting algorithms and signals, Deriv lists seven standalone trading platforms permission.
The Deriv X trading platform is a user -friendly web -based trading platform with features rich charts, which are superior to the web -based MT5 platform, while Smarttrader and Deriv Traders serve home houses. Optional transaction.
Mobile traders can use Deriv Go, while Deriv Bot enables algorithmic trading in a code-free environment.
Special features
I like the swap-free trading environment at Deriv and the no-code algorithmic trading solutions, but most traders may find the learning curve and tutorials insufficient. Deriv provides five calculators, which are very useful, but I would like them to be integrated into the trading platforms to increase the efficiency and effectiveness of the trading tools.
Research and education
Deriv provides weekly market news and devotes a section to showcasing how traders can subscribe to trading signals from MT5. I find the approach acceptable, and given the abundance of third-party providers, I do not consider the absence of actionable research negative.
Beginners will find educational content on the Deriv blog, but a course or approach specifically for education will be available soon.
I recommend beginners seek education from third parties, start with trading psychology to deepen their foundation, and avoid paid courses before funding a deriv account.
Customer support
Deriv is available 24/7 via live chat. It relies on the FAQ section and the community. Chat was responsive during my review but was unable to answer questions about its trading environment. Deriv explains his products and services well, and I suspect many traders will need much help, but I'm missing a direct line to the finance department, where most problems come from. can arise.
Opening an account
Deriv only requires a valid e-mail to start the registration process. Demo account creation is free, includes creation of Back Deriv office. That is why demo traders must confirm their country of residence. Deriv allows new customers to sign up through their Google, Facebook or Apple ID. I like the Swift account registration process, and Deriv doesn't collect unnecessary personal details or data mining.
Account verification is required, as Deriv complies with four regulators and strict AML/KYC requirements. Most traders will satisfy it by uploading a government-issued ID and a proof of residency document. Deriv may request additional information on a case-by-case basis.
Minimum trading fees
Minimum deposit at Deriv is $5.
Payment methods
Deriv supports bank transfers, including localized options, credit/debit cards, 17 e-wallets, including Fasapay, Perfect Money, Skrill, Neteller, WebMoney, Paysafe, Jeton, Sticpay and Astropay , five cryptocurrencies, three onramp cryptocurrencies, and deriv p2p. Payment methods vary according to customer jurisdiction.
Deposits and Withdrawals
Back Office Deriv securely manages all financial transactions for verified customers.
Traders get 28 payment methods, but availability depends on the geographical location of the account owner. Back Office will only list those that are available. Derivative minimum deposits are between $5 and $10 for most payment processors, except $500 for Deriv P2P, while cryptocurrencies have no minimum requirements. Minimum withdrawal also depends on the payment processor.
Internal deposit processing time is almost instantaneous in most methods, while Deriv processes most withdrawals within one business day. Only verified trading accounts can deposit and withdraw funds, and the name on the payment processor must match the derived account name.
Conclusion
I like the trading environment at Deriv because it features swap-free trading by default and includes algorithmic trading in a code-free environment through two of its seven proprietary trading solutions. Besides 60+ currency pairs and 30+ cryptocurrency pairs, Deriv offers synthetic assets, creating more trading opportunities. The minimum deposit is $5 and 28 payment processors ensure wide accessibility. The commission-free cost structure is reasonable and I rate Derivatives among the most competitive brokers with a promising future.
