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Deriv Review

 

Deriv Review

Overall Rating

4.3/5

Rated #365 of
Recommended FX Brokers

💰Minimum Deposit

USD 5

🌐 Regulators
FSA, MFSA, VFSC
📱 Trading Desk

MetaTrader 5

Crypto

Yes

📈 Total Pairs

☪️ Islamic Account

No

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker

 

Deriv is a forex broker company with its head office in the United States. A Forex broker like Deriv provides traders with access to one or more platforms that will allow them to buy and sell foreign currencies.

Forex brokers are also known as retail or currency trading brokers. Retail currency traders, in turn, use these broker companies to gain access to the 24-hour currency market for speculation purposes.

Forex broker services can also be provided for institutional clients and large companies such as investment banks.

After 20 years of serving retail clients, the online broker called Binary.com had undergone a rebrand to become the new and improved Deriv. The platform provides an expanded product range, an improved user experience, plus a glossy new logo.

Binary.com is an American forex broker company that is based in different countries with offices in Malta, Malaysia, and Japan. The company was founded in 1999 by Binary Group who is a valued name in the binary options trading business. In 2016 Binary.com was started and introduced the first Bitcoin accounts.

In a gradual transition, Binary.com’s more than one million customers, responsible for 43 million trades each month and $6 million in monthly withdrawals, will migrate to Deriv.com.

During the transition traders will be able to trade on Binary.com., but as Binary.com will be phased out, traders can benefit from moving over to Deriv.com.

 

Awards and Recognition

In the world of forex broker companies being honored with awards from esteemed organizations or publications, count much for the company’s reputation. Such awards are usually mentioned with pride on the company website.

Deriv has accumulated the following awards during its years of service to traders:

Best Trading Platform in Asia’ by Global Brands Magazine. The Global Brands Awards honors excellence in performance and exceptional service delivery.

Binary.com won ‘Best Binary Company Asia Pacific’ in the Global Banking & Finance Awards 2018.

 

Deriv Accounts

A forex account is a trading account held by a trader with a company like Deriv, that is issued with the primary purpose of trading through its platforms.

Usually, the number and type of accounts that a trader can open with a broker company differ according to the country in which the brokerage operates, the country of residence of the trader, and the regulatory authorities under whose jurisdiction it operates.

Accounts usually differ in the way spreads or commissions are applied, what minimum deposit is needed to open that type of account, and certain services or advantages that account holders may get access to.

In the case of Muslim customers, special Islamic accounts, that is swap-free accounts, are offered that mirror the other account types, but which operate by Shariah law.

 

 

Types of Accounts and its Features

Deriv offers only a demo account and a Standard type of account.

 

Standard Account

Once you have learned your way around the trading markets with your Demo Account, you then can open a Real Account with a deposit of just $5.

 

Overall Rating

4.3/5

Rated #365 of
Recommended FX Brokers

💰Minimum Deposit

USD 5

🌐 Regulators
FSA, MFSA, VFSC
📱 Trading Desk

MetaTrader 5

Crypto

Yes

📈 Total Pairs

☪️ Islamic Account

No

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker

 

Deposits and Withdrawals

Deriv offers different deposit and withdrawal options which include:

  • Bank wire transfer – Minimum deposits start at just $5 with most deposits processed instantly.
  • Credit/debit cards – Both Visa and Mastercard can be used with minimum deposits starting at 10 USD/GBP/EURO/AUD. Deposits made via credit and debit cards are processed instantly.
  • E-wallets – Skrill, Neteller, PaySafe, Fasapay, and WebMoney Minimum deposits start at 5 of your base currency and are processed instantly.
  • Cryptocurrency – You can deposit funds into your deriv.com account using Bitcoin, Ethereum, Litecoin, and Tether.

 

There is no minimum deposit when using cryptocurrencies, with payments processed in three blockchain confirmations.

 

Cost and Fees, Commissions and Spreads

The cost of trading depends on different factors like commissions, spreads, and margins.

The spread of a currency pair is the difference between the bid and the asking rate. A pip represents the smallest increment that an exchange rate can move. One pip is 0.01 for currency pairs with JPY as the term currency and 0.0001 for all other pairs.

The amount of money required in your account to open a position is called the margin and is calculated according to the current price of the base currency against USD, the size (volume) of the position, and the leverage applied to your account.

Commissions are the charges imposed by an investment broker on a trader for making trades on the trader’s behalf. The level of commissions depends on the asset being traded and the type of service offered by the broker.

Execution-only brokers, which do not involve in personal investment advice and give traders complete control over how they trade the markets, usually charge lower commissions.

While contract for differences (CFDs) trading is a form of derivative trading that enables traders to speculate on the rising or falling prices of fast-moving global financial markets, it’s trading on shares will incur commission. CFD trades on other markets have no commission but do wrap a spread around the market price of a certain instrument.

Spreads – Deriv states that it offers tight spreads and minimal trading fees.

Deposit and withdrawal fees – Deriv doesn’t mention any withdrawal or deposit fees on their website.

Inactivity fees – A dormant fee may be charged to accounts inactive for a period of 12 months

Commission – Deriv mentions that the commission is only for crypto-currencies, but they do not specify the amount on their website.

 

Leverage

Leveraged product trading magnifies a trader’s potential profit – but of course, also increases the potential loss. This facility that enables traders to get a larger exposure to the market than the amount they deposited to open a trade, is called leverage.

The amount of leverage is expressed as a ratio, for instance, 50:1, 100:1, or 500:1. Assuming that a trader has $1000 in a trading account and is trading ticket sizes of 100000 USD/JPY, that leverage will equate to 100:1.

Traders should always keep in mind that, although high leverage offered may be a plus point for the brokerage, but trading at such high leverage should only be attempted by experienced traders that know how to prevent big losses.

Deriv allows its traders to use a maximum leverage ratio of up to 1:1 000.

 

Bonuses

Forex brokers often lure new traders with offers of deposit bonuses. This can be useful, but it is essential to discern what the conditions are to really benefit from a bonus.

The bonus usually compensates traders for choosing a certain broker, since once the account is active, the trader will have the same expenses as any other. The bonus usually only starts giving some expenses back to the trader once the person has proved himself as an active trader.

Hence, although no deposit bonuses are a great way to help you start trading, the terms to benefit from it often require trading with such a high volume before you can withdraw profits, that it may not be worthwhile.

The European Securities and Markets Authority (ESMA) has also recently placed investor protection measures on the marketing, distribution, or sale of CFDs which prevent brokers to provide the retail client with a payment, monetary or excluded non-monetary benefit about the marketing, distribution, or sale of a CFD, thus ruling out the offering of such bonuses.

According to the company website and other sources, Deriv does not offer any welcome bonuses and no promotion codes seem to be available. Potential traders can keep an eye on the Deriv website for news of any sign-up offers and existing customers can check for bonuses.

 

Trading Platforms, Software, and its Features

The forex trading software, also called the platform, provided by a broker company to its clients to carry out their trades can be a multi-asset one that allows clients to trade forex as well as other asset classes like CFDs on stocks, stock indices, precious metals, and cryptocurrencies.

Some companies provide their own proprietary platform, which may benefit traders due to specific characteristics developed by specialists employed by the broker, while others prefer to provide the better-known platforms that were tried and tested through time.

If there is a choice, the trader should keep in mind what he would like to trade and find the platform that suits his needs best.

Deriv offers three different trading platforms which are all available on the company website, along with Binary.com’s SmartTrader system. They are:

 

DMT5

Integrating MT5 and the related analysis and research tools, the platform is easy to use and quite feature-rich. It presents a great combination of features for traders at all levels. It is fully configurable, meaning that traders can set up charts or trade areas as they wish. Multiple trade windows can be opened at once, or specific windows can be detached and moved around as required by a trader.

 

DTrader

The customizable platform provides a clean interface and more than 50 tradable assets. Charts can be modified to meet a trader’s needs with technical indicators and widgets. Trade types can also be customized.

 

DBot

The DBot platform provides an uncomplicated setup using algorithmic investing. Trading bots are free to develop, can be built in five steps, and can be used on more than 50 assets. There are also three pre-built strategies that traders can use once they find their feet.

 

Markets, Products, and Instruments

Most brokers offer all or some of the following market instruments for trading:

 

Forex

Forex trading, or currency or FX trading, involves the currency exchange market where individuals, companies, and financial institutions exchange currencies for one another at floating rates.

 

Commodities

As with currency exchange markets, commodity markets offer trading in contract-based tradable goods.

 

Indices

Equity or stock indices can represent a specific set of the largest companies of a nation or they can represent a specific stock market. It is actual stock market indexes that measure the value of a specific section of a stock market.

 

Precious metals

This involves the trading of gold, silver, and other precious metals as hard commodities that are contract-based tradable.

 

Energy

The high volatility of energy prices due to political, environmental, and several other factors, is a typical feature of this product, making it a popular trading choice.

 

Cryptocurrencies

Tradable cryptocurrencies include the following:

Bitcoin (BTC)is the digital currency with the largest market capitalization and price levels and dominates 50% of the total crypto market cap.

Litecoin (LTC) is similar to Bitcoin but differs in terms of scalability.

Ethereum (ETH) is the second-largest cryptocurrency after Bitcoin and allows developers to create smart contracts on a platform.

Ripple (RPL) is popular among big banks with the Ripple network a next-generation real-time gross settlement system.

Bitcoin Cash (BCH) was created as a new version of the blockchain with different rules.

Deriv offers its clients the following:

  • Forex – Close to 50 FX currency pairs, including majors, minors and exotics
  • Stock indices – Speculate on price movements across the largest US, Asian and European stock indices
  • Synthetic indices – Based on a secure random generator, synthetic indices replicate real-world market conditions and are available 24/7 delivering consistent volatility
  • Commodities – Precious metals, such as gold and silver, plus energies like oil are available

 

 

Safety and Regulation

Before deciding to join a brokerage company to start trading, a potential trader needs to establish whether a broker like Deriv is safe and secure to trade with. One of the most reliable benchmarks to measure the safety of a brokerage is to establish which regulating authorities are watching and overseeing its actions and whether the company complies with those regulations.

In general, a so-called “offshore” broker tends to have a less favorable reputation and potential traders should think carefully before investing with them.

Secondly, the safety of the client’s funds should be guaranteed and in the case of the company defaulting or going bankrupts, a safety net of some sorts would come in handy to prevent customers from taking more losses.

Deriv is a reliable broker that is regulated in multiple jurisdictions. In the EU, Deriv is regulated by the Malta Financial Services Authority (FSA). For traders outside of the EU, the broker is licensed with the Vanuatu Financial Services Commission (FSC) and the British Virgin Islands Financial Services Commission (FSA). Also, Deriv.com is regulated by Malaysia’s Labuan Financial Services Authority (FSA).

 

Customer Support

Potential traders need to be assured that the broker company they chose can offer the necessary support and help whenever they may need it. The ease with which such support teams can be contacted may also play a role when choosing a broker.

The customer support team of Deriv can be reached 24 hours per day, seven days a week through their customer services help center. They have a live chat option that is available directly from their website. You can also reach them by telephone or via email.

 

Education and Training

Before starting to trade, potential Deriv clients should arm themselves with all possible information and trading skills needed to be successful in the world of forex and commodity trading. If Derive’s website itself does not provide enough means, a trader should explore other information sources to obtain that skills and knowledge.

Deriv educational resources are lacking and this is a damper for beginner traders.

 

Research

Potential traders need to be enabled to do as much as possible research about speculative trading before commencing to do it and while trading with a specific brokerage.

Trading successfully relies heavily on knowledge and understanding of the markets and the platforms offered by a broker, therefore research options offered by brokers form an integral part of its features when choosing the right company to trade with.

Deriv only offers their clients some research tools embedded in their trading platforms software such as an economic calendar which keeps track of annual events.

 

Conclusion

Deriv is the latest development of Binary.com which is widely known and extremely popular. Traders can choose between several platforms to suit individual trading styles and objectives.

The amount covered under financial services compensation schemes varies between different regulators and jurisdictions.

 

You might also like: Deriv Minimum Deposit

You might also like: Deriv Account Types

You might also like: Deriv Demo Account

You might also like: Deriv Fees and Spreads

You might also like: Deriv Sign up Bonus

 

Disclaimer

Deriv warns potential traders that Forex and CFDs trading always carries a high level of risk, therefore may not be suitable for all investors.

Before clients decide to trade the products offered by Deriv, they are advised to contemplate their investment objectives, financial situation, needs, and level of experience carefully before investing money that they cannot afford to lose.

Especially when traders use Deriv ’s leveraged accounts, they should make sure to maintain a sufficient level of margin to sustain their positions, since trading Forex/CFD and Options on margin and using a higher than necessary leverage can be either beneficial or detrimental to a trader. It is always possible to sustain a loss of some or all of an initial investment.

While Deriv promises to make all efforts to fill a trade at the requested price, trading online does not necessarily reduce risks associated with currency trading, therefore quotes and trades are usually subject to the terms and conditions of a Client Agreement, which is accessible through the broker’s website.

Potential traders should first acquaint themselves with all these associated risks and seek advice from an independent financial advisor.

 

Deriv at a Glance

Broker’s name Deriv used to be known as Binary.com
Headquarters United States
Year founded 1999
Regulating authorities VFSC (Vanuatu)

FSC (British Virgin Islands)

IBFC (Malaysia)

Countries not accepted for trade Canada, France, Hong Kong, Israel, Jersey, Malaysia, Malta, Paraguay, UAE and USA,
Demo account Yes
Islamic account (swap-free) No
Institutional accounts Yes
Managed accounts No
Maximum leverage 1:1 000.
Minimum deposit $5
Deposit options Bank wire transfer –Credit/debit cards – Both Visa and Mastercard – USD/GBP/EURO/AUD. E-wallets – Skrill, Neteller, PaySafe, Fasapay, and WebMoney

Cryptocurrency –Bitcoin, Ethereum, Litecoin, and Tether.

Withdrawal options Bank wire transfer –Credit/debit cards – Both Visa and Mastercard – USD/GBP/EURO/AUD. E-wallets – Skrill, Neteller, PaySafe, Fasapay, and WebMoney

Cryptocurrency –Bitcoin, Ethereum, Litecoin, and Tether.

Platform(s) provided Binary.com’s SmartTrader system.

DMT5

DTrader

DBot

OS compatibility Mac, Windows, Linux, Web, Mobile Android, iPhone, iPad.
Tradable assets offered Forex – Close to 50 FX currency pairs, including majors, minors, and exotics

Stock indices – Speculate on price movements across the largest US, Asian and European stock indices

Synthetic indices – Based on a secure random generator, synthetic indices replicate real-world market conditions and are available 24/7 delivering consistent volatility

Commodities – Precious metals, such as gold and silver, plus energies like oil are available

Languages supported on the website 11 different languages
Customer support languages Customer service provided in 11 different languages
Customer service hours 24/7

 

Overall Rating

4.3/5

Rated #365 of
Recommended FX Brokers

💰Minimum Deposit

USD 5

🌐 Regulators
FSA, MFSA, VFSC
📱 Trading Desk

MetaTrader 5

Crypto

Yes

📈 Total Pairs

☪️ Islamic Account

No

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker

 

FAQ’s

 

Trading Environment

 

How many instruments can I trade with Deriv?

You can trade several different instruments with Deriv, which include the following:

  • Forex – Close to 50 FX currency pairs, including majors, minors, and exotics
  • Stock indices – Speculate on price movements across the largest US, Asian and European stock indices
  • Synthetic indices – Based on a secure random generator, synthetic indices replicate real-world market conditions and are available 24/7 delivering consistent volatility
  • Commodities – Precious metals, such as gold and silver, plus energies like oil are available,

 

Which platforms are supported by Deriv?

Deriv provides the following trading platforms:

  • Binary.com’s SmartTrader system.
  • DMT5
  • DTrader
  • DBot

 

Does Deriv offer leverage?

Yes, Deriv offers maximum leverage of up to 1: 1000

 

What spreads can I expect with Deriv?

Deriv offers different spreads on its various accounts. Deriv states they offer tight spreads and minimal trading fees.

Since details on the website are not clearly enough stipulated, more information should be obtained from the customer support service to make an informed choice.

 

Does Deriv charge commission?

Deriv states that the commission is only for crypto-currencies, but they do not specify the amount on their website. More information on commissions may become available after opening an account or can be obtained from the customer support service.

 

Is Deriv regulated and by whom?

Deriv is regulated by the Malta Financial Services Authority (FSA). For traders outside of the EU, the broker is licensed with the Vanuatu Financial Services Commission (FSC) and the British Virgin Islands Financial Services Commission (FSA). Also, Deriv.com is regulated by Malaysia’s Labuan Financial Services Authority (FSA).

 

Is Deriv a recommended forex trading broker for experts and beginners?

Deriv offers a fair trading environment for most types of traders.

 

What is the overall rating out of 10 for Deriv?

8/10

 

Accounts

 

What is the difference between a demo and a live trading account?

A demo account is offered by broker companies like Derivhas usually funded with virtual money and allows a prospective customer to experiment with the company’s trading platforms and its features, before setting up a real account that needs to be funded with the customers own real money.

 

Does Deriv offer a demo account?

Yes.

 

Can I convert my demo account to a live trading account with Deriv?

This is not clear from the information on the company homepage.

 

Which live trading accounts does Deriv offer?

Standard Account

Once you have learned your way around the trading markets with your Virtual Account, you then open a Real Account with just $5.

 

What are the available deposit currencies for a live trading account?

Multiple currencies.

 

Deposits and Withdrawals

 

What is the minimum deposit required to open an account with Deriv?

$5.

 

How do you make a deposit and withdraw money with Deriv?

Deriv offers the following deposit and withdrawal methods:

  • Bank wire transfer – Minimum deposits start at just $5 with most deposits processed instantly.
  • Credit/debit cards – Both Visa and Mastercard can be used with minimum deposits starting at 10 USD/GBP/EURO/AUD. Deposits made via credit and debit cards are processed instantly.
  • E-wallets – Skrill, Neteller, PaySafe, Fasapay, and WebMoney Minimum deposits start at 5 of your base currency and are processed instantly.
  • Cryptocurrency – You can deposit funds into your deriv.com account using Bitcoin, Ethereum, Litecoin, and Tether.
  • There is no minimum deposit when using cryptocurrencies, with payments processed in three blockchain confirmations.

 

The same method that was used to fund an account must normally be used to withdraw money. Also, monies will usually only be refunded to accounts in the same name as the trading account.

 

Does Deriv charge withdrawal fees?

Fees from financial institutions may be applicable and more information about applicable costs can be obtained from the company’s customer service team.

 

How long does it take to make a withdrawal?

Withdrawals using certain methods may be processed within a shorter period than others. Usually, withdrawals take a few days but depending on bank services it may take several days longer for the money to be available in a customer’s bank account.

 

Author Details

Louis Schoeman

Louis Schoeman

Featured Forex and Stocks writer

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