Deriv Review: Is Deriv A Safe Broker?

Deriv Overviews

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As a global powerhouse in the online brokerage industry, Deriv, with its diverse asset offerings and commitment to user-centric services, has carved a niche for itself in the world of trading. This review delves into the intricate workings, offerings, and operations of Deriv, leaving no stone unturned to give you a comprehensive understanding of this reputable broker.

Facts About Deriv

Pros and Cons

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Is Deriv Safe? Broker Regulations

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Deriv, a noteworthy name in the brokerage industry, offers its services under the umbrella of the Deriv Group, which boasts a cluster of subsidiary companies. These subsidiaries are licensed to operate Deriv.com within their respective jurisdictions.

A stalwart in the industry since 1999, the Deriv Group has a well-earned reputation for its adherence to ethical standards and rigorous regulatory requirements. This has enabled it to build trust and credibility among traders worldwide.

Among its subsidiaries, Deriv Investments (Europe) Limited, which operates from Birkirkara, Malta, is licensed by the Malta Financial Services Authority. Clients across the European Union can trade financial instruments under this subsidiary. Furthermore, Deriv Investments (Europe) Limited offers its services across numerous EU countries via EU “passport” rights.

Deriv (FX) Ltd, another subsidiary, operates from Labuan, Malaysia, and is licensed by the Labuan Financial Services Authority. Clients outside of restricted countries can trade CFDs on Forex and cryptocurrencies under this entity.

Similarly, Deriv (BVI) Ltd, operating from the British Virgin Islands, is licensed by the British Virgin Islands Financial Services Commission. This subsidiary facilitates trading CFDs on financial instruments and derived indices for clients globally, except in a few restricted countries.

Further strengthening its regulatory framework, Deriv (V) Ltd, based in Port Vila, Vanuatu, is licensed by the Vanuatu Financial Services Commission. It allows trading CFDs on financial instruments and derived indices to clients outside of restricted countries.

For clients in the rest of the world, with the exception of a few restricted countries, Deriv (SVG) LLC, based in St. Vincent and the Grenadines, offers the opportunity to trade under its license.

Deriv Holdings (Guernsey) Limited, stationed in St Peter Port, Guernsey, operates as the holding company for the subsidiaries as mentioned above.

All the detailed regulatory information about Deriv can be accessed under the “Regulatory Information” section located in the “About Us” and the website’s footer section.

In terms of accolades, Deriv has been acknowledged as the Best Forex Broker Africa, marking its only notable award as a broker.

Furthermore, Deriv is also registered with The Financial Commission, an independent international organization tasked with resolving disputes within the financial services industry, enhancing its credibility.

Remember, while Deriv is a well-regulated broker with an award to its name, it’s always essential to make informed decisions based on your individual trading needs and risk tolerance.

What Can I Trade with Deriv?

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Deriv, a reputable broker in the financial industry, offers a wide array of tradable assets. You can explore a comprehensive list of these assets under the “Markets” tab in the primary navigation menu. The assets that are accessible for trading range from Forex and commodities to derived assets, cryptocurrencies, stocks, indices, and ETFs.

Forex

Diving into the Forex trading aspect of Deriv, it provides opportunities to trade on CFDs, options, and multipliers. The trading of CFDs, or contracts for difference, permits you to speculate on an asset’s price changes without the necessity of owning that asset. Deriv provides high leverage in CFD trading, meaning you only need to invest a portion of the contract’s total value. This approach may multiply your potential profits but also increase the potential losses. The major Forex pairs available include AUD/JPY, AUD/USD, EUR/AUD, EUR/CAD, EUR/CHF, and GBP/SEK.

Derived

Deriv also offers trading of synthetic assets, including DEX indices such as DEX 900UP and DEX 900DN. These assets mimic real-world market movements and are accessible for trading 24/7. They provide a unique trading environment unaffected by regular market hours or global events.

Stocks & Indices

Turning to stocks and indices, Deriv extends the ability to trade on American and Asian indices. You have the opportunity to invest in prominent market segments like the US 500, US Tech 100, Wall Street 30, Australia 200, and Japan 225.

Commodities

Commodities trading on Deriv include metals and energy sources. From aluminum, copper, gold, and silver to Brent crude oil and West Texas Intermediate, Deriv accommodates a broad spectrum of commodities for trading.

Crypto

Deriv also hosts cryptocurrency trades, offering crypto pairs such as ALG/USD, ADA/USD, AVA/USD, BAT/USD, BCH/USD, BNB/USD, BTC/USD, and BTC/ETH.

ETFs

For traders interested in exchange-traded funds (ETFs), Deriv provides a variety of options, including AGG.US, ARRK.US, DIA.US, EEM.US, EFA.US, ERX.US, GDX.US, GLD.US, and HYG.US.

In conclusion, Deriv provides its clients with a rich collection of tradable assets, offering flexibility and choices to suit various investment preferences and strategies. Just as with any investment, potential traders should carefully research and consider their trading options and perhaps consult a financial advisor to ensure they make informed decisions.

How to Trade with Deriv?

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Deriv offers an impressive selection of trading platforms that cater to an array of trader needs and preferences. Under the “Trade” section in the main menu, you’ll find a wealth of information on these platforms, including MetaTrader 5 (MT5), Deriv Trader, Deriv X, Deriv Go, Deriv EZ, Deriv Bot, and Binary Bot. While this broker doesn’t offer the MT4 platform, which is a favorite for many traders, it compensates with a range of unique and versatile platforms.

MetaTrader 5 (MT5)

MT5 on Deriv extends beyond the ordinary, boasting over 475,000 clients and offering trading opportunities across more than 200 asset classes. With an edge in versatility, it presents a unique blend of tradable assets, including Forex, stocks & indices, cryptocurrencies, commodities, and more, 24/7.

Why choose Deriv MT5? For one, it’s remarkably accessible for beginners. Setting up a demo account is quick, allowing you to practice with unlimited virtual funds. Traders can manage a myriad of assets on a single platform, with the added advantage of 24/7 trading. Regulated and trusted for over two decades, Deriv stands as an industry pioneer. And for those holding swap-free accounts, rest easy knowing there are no overnight charges. Tools such as calculators and various analytical aids on the Deriv MT5 platform are provided to help manage your trading positions effectively.

Deriv X

The second CFD platform on Deriv after MT5, Deriv X presents a unique trading experience. This customizable, multi-asset platform offers more than 100 tradable assets, commission-free, with around-the-clock trading. Features like drag-and-drop widgets and personalized layouts make creating a bespoke trading environment easy. Additionally, Deriv X gives you real-time margin impact information before each trade, helping to keep your trading risks in check.

Deriv EZ

Targeting ease and accessibility, Deriv EZ is a user-friendly platform that offers instant access to over 150 assets. One significant advantage of this platform is the ease of access; you can begin trading CFDs in just two simple steps. Plus, with Deriv EZ, you can trade anytime, including weekends and holidays. If you’re someone who’s constantly on the go, you can conveniently access your Deriv EZ trades on the Deriv GO mobile app.

Deriv Trader

Deriv Trader stands out for its sheer simplicity and accessibility. It allows traders to engage in Forex, commodities, cryptocurrencies, and indices with stakes as low as $0.35 and flexible trade durations ranging from one second to 365 days. The platform also provides tools and widgets for more informed trading decisions.

Deriv Go

Designed with mobility in mind, Deriv Go offers an optimized trading experience for those on the go. It allows you to trade on Forex, derived indices, and cryptocurrencies with a potential profit of up to 1000x and a minimum stake of just USD 1. The app also provides effective risk management features like stop loss, take profit and deal cancellation.

Deriv Bot

Deriv Bot offers an innovative trading approach, allowing traders to create trading robots using a simple drag-and-drop mechanism. With over 50 assets available for your Bot, you can maximize your profits and limit your losses with tools and indicators. Your Bot’s performance can be tracked in real time, and you even receive notifications via Telegram.

Binary Bot

Binary Bot is a free trading app from Deriv that provides a user-friendly experience with its built-in trading strategies, money management tools, and analysis tools. The app supports Synthetic Indices and offers highly customizable strategies.

In conclusion, Deriv offers a rich collection of platforms catering to a broad range of trader needs. While the absence of the MT4 platform might be a concern for some, the diverse selection and unique offerings make Deriv a considerable choice for traders seeking an optimal trading experience.

This table offers a snapshot of each platform’s distinctive features. It highlights the aspects where Deriv platforms excel, like one-click trading, 24hr trading, and charting packages. However, it also reveals areas where some information is not readily available or unknown. As such, I encourage you to visit the Deriv website or contact their customer service for the most accurate and up-to-date information regarding these features.

How Can I Open Deriv Account? A Simple Tutorial

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This broker only allows clients to initially open a demo account and then open a real one. In order to open a demo account, you will need to head to the broker’s website. Then you must click on the “Create free demo account” button in the main menu.

You will then be directed to the demo account creation page. Here you will need to fill in your Email address and accept the terms and conditions of the broker. It should be noted that you are also able to sign up with social accounts like Google, Facebook, and Apple. However, we will be using an Email address for this account creation.

Following that, you will receive a prompt indicating that you will need to check your email account and click on the link to verify and activate your account.

After you have clicked on the link that was sent to your email, you will be directed to the client area of your account. Here you will proceed to answer some personal questions like your name, country of residence, phone number, etc. Once this is done, you will have access to your client area.

 

Deriv Charts and Analysis

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Deriv offers an array of trading resources and educational materials. All these resources, tools, and educational materials are available under the ‘Resources’ section on the Deriv main menu. Whether you’re a novice trader or a seasoned professional, these tools can support your trading activities and decision-making process, fostering an enriching trading experience with Deriv.

Help Center

The Deriv broker offers a comprehensive Help Center designed to assist traders in various aspects. This center answers general queries about account maintenance, such as changing personal details or account currency, and even how to modify email addresses. It also provides fundamental insights into trading topics like Forex, commodities, and stock indices. For those interested in financial transactions, the Help Center also details the methods for deposits and withdrawals, processing times, and minimum amounts. Additionally, it guides users through security concerns like account verification and document requirements.

Community

Deriv extends its support through a robust Community Forum. This platform is where traders can engage in discourse about various topics, such as new products and features, trading platforms, or general discussions about Deriv. The forum also accommodates Spanish language discussions, showcasing its commitment to inclusivity.

Trader’s Tools

Deriv enhances trading efficiency with a suite of tools. These include the Margin Calculator, which allows traders to estimate the margin needed to hold positions. The Swap Calculator computes overnight fees for holding open positions, and the Pip Calculator helps determine pip value to better manage risks. The broker also offers calculators to estimate stop loss, take profit levels, and pip values, offering a comprehensive resource for efficient risk management.

Deriv MT5 Signals

To further assist traders, Deriv MT5 offers a signal service enabling traders to automatically replicate the trades of more experienced traders. Subscribing to this service minimizes trading risks and saves time, as there’s no need to monitor trades continuously. It’s also easy to set up, offers full disclosure of each provider’s performance, and comes without hidden fees or commissions.

Deriv Blog

The Deriv Blog serves as a knowledge resource offering regular articles on various trading topics. From the importance of managing emotions, while trading to guides on reading stock market indices and the process of setting up optional parameters for enhancing your DBot strategy, the blog provides a wealth of information to enhance your trading journey.

Deriv Account Types

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When evaluating a brokerage platform, potential clients typically seek information about different account types that the broker offers. The available account types can inform users about the broker’s suitability for their specific trading needs, providing insights into features like leverage, trading instruments, and platform availability.

In the case of the Deriv broker, such detailed information regarding account types is not readily accessible on the official website. Despite this lack of transparency, a closer look reveals that once a demo account is opened, a few other account types are available, namely the Derived, Financial, and Deriv X demo accounts. Unfortunately, these are all demo accounts, and no clear details are provided about corresponding “real” or live trading accounts, either on the website or within the client area.

Available Demo Account Types

• Derived Account: This demo account operates on the MT5 platform, offering a maximum leverage of up to 1:1000. The trading instruments available with this account type include synthetics, baskets, Derived FX, Forex: standard/micro, stocks, stock indices, commodities, and cryptocurrencies.
• Financial Account: Like the Derived account, the Financial account is a demo account on the MT5 platform and provides maximum leverage of up to 1:1000. The trading instruments here are similar to the Derived Account.
• Deriv X Account: The Deriv X account, as the name suggests, operates on the Deriv X platform. The maximum leverage and trading instruments offered in this account type align with those of the Derived and Financial accounts.

A lack of detailed information about account types can pose significant challenges to prospective clients. Detailed account information is vital for a potential client to determine if a broker fits their trading needs. It provides transparency into crucial aspects of trading, such as the types of instruments that can be traded, the levels of leverage available, the minimum deposit required, and the trading platforms supported.

Account types also reveal the broker’s approach to catering to different categories of traders. For instance, some brokers offer special accounts for beginners, while others may have account types designed for experienced or professional traders. Hence, the absence of information about the available live account types on Deriv’s website is indeed a limitation for potential clients. Until this information is made readily accessible, it might be challenging to evaluate the broker completely.

As previously mentioned, specific details about the Derived, Financial, and Deriv X account types, particularly for “real” or live accounts, are not explicitly mentioned on the Deriv website. Thus, a considerable portion of the information remains unspecified.

Do I Have Negative Balance Protection with This Broker?

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At first glance, Deriv seems to be a broker that offers a comprehensive set of tools and features for their traders. However, while examining their policies and services, it becomes apparent that certain key information is missing from their website. One such omission is a specific mention of a negative balance protection policy.

Negative balance protection is a crucial policy in the world of Forex and CFD trading. It ensures that traders are not held liable for losing more money than they have deposited into their accounts. In volatile market conditions, the balances of trading accounts can sometimes go into the negative. Having a negative balance protection policy means that the broker would absorb these losses, preventing the trader from owing any additional funds.

Unfortunately, this policy is not explicitly mentioned on the Deriv website. This lack of clarity extends to their account offerings as well. On the surface, Deriv seems to offer only demo accounts – Derived, Financial, and Deriv X – and there’s minimal information about “real” or live accounts, which makes it hard to discern what specific policies apply to those accounts.

The presence of Deriv’s proprietary trading software implies that live trading must indeed be a part of their service offering, but the details remain unclear. This lack of transparency can create uncertainty and may be a stumbling block for potential clients who wish to understand the full scope of what they’re signing up for.

The absence of clearly stated policies, particularly one as important as negative balance protection, can be a significant drawback for a broker. Such policies provide assurance to traders and reflect the broker’s commitment to risk management and customer service. Potential clients need this information to make informed decisions and choose a broker that best suits their risk tolerance and trading goals.

Deriv Deposits and Withdrawals

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When choosing a broker, the ease and variety of deposit and withdrawal methods can be critical. In the case of Deriv, you can find detailed information about their payment options under the ‘payments’ section of the ‘resources’ menu on their website. Unfortunately, specific withdrawal methods are not listed, but it’s common practice for brokers to facilitate withdrawals via the same methods used for deposits.

Deriv provides an extensive selection of deposit methods. The options are so varied and numerous that interested users should explore the options directly on the website. Furthermore, each deposit method is accompanied by a detailed PDF guide on how the process works, which should prove helpful for first-time users or those unfamiliar with certain payment options.

Payment methods supported by Deriv include:

• Credit/debit cards: It’s worth noting that the withdrawal times for these options might take up to 15 working days and that Mastercard and Maestro withdrawals are only available for UK clients.
• E-wallets: This digital option offers ease of use and faster transaction times.
• Online banking: A reliable method that links directly with your bank account.
• Cryptocurrencies: Deriv also accommodates tech-savvy traders who prefer to deal in digital currencies.
• Fiat Onramp: This option is for those who wish to buy crypto on popular exchanges.
• Deriv P2P: This option is also available for users interested in peer-to-peer transactions.

Each method has its unique characteristics and may suit different traders according to their specific needs. For example, the crypto payment methods are exclusively for clients with crypto trading accounts.

It’s also important to know that while Deriv processes all deposits and withdrawals within one day, the actual processing times and limits may vary due to queue lengths or reasons beyond Deriv’s control. Therefore, users should always take into account potential delays.

Lastly, remember that if you wish to increase your daily deposit or withdrawal limits, contacting Deriv’s customer support will be necessary. The flexibility and detail provided in Deriv’s payment options could prove beneficial to traders, catering to a wide range of preferences and requirements.

Support Service for Customer

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As a trader, it’s crucial to have access to reliable customer support channels when dealing with any financial broker, including Deriv. To their credit, Deriv provides a range of customer support options, but there seem to be some notable absences, specifically in telephonic and email support.

On their ‘Contact Us’ page, you can find the links to Deriv’s support community and their Help Centre, which include forums and FAQ sections. These resources can be beneficial for self-help, allowing traders to seek answers to common questions or issues previously resolved.

Deriv provides a live chat feature and a WhatsApp chat on their website for more immediate and direct interaction. These options can be advantageous for resolving issues quickly and efficiently, especially when it comes to more complex queries that may require back-and-forth communication.

Furthermore, Deriv’s ‘Contact Us’ page provides details of their physical offices around the world, including locations in Europe, Asia, the Middle East, Eastern Europe, Africa, Latin America, the Caribbean, and Oceania. This global presence speaks volumes about their reach and commitment to serving traders worldwide.

However, the apparent lack of telephone and email support is puzzling. While not as immediate as live chat, these traditional channels provide a personal touch and can be more conducive to resolving complex queries. The absence of these channels may indicate a lapse in communication options provided by Deriv, which can be of concern for traders.

Providing email support, in particular, allows users to raise and track their issues in a structured manner, providing a written record of correspondence and resolution. On the other hand, phone support allows for more personal interaction and potentially quicker resolution, as the support staff can directly guide the user through the process.

Overall, while Deriv does provide various channels for customer support, the lack of certain traditional methods may hinder comprehensive customer service experiences. Potential clients should bear this in mind when considering Deriv as their broker of choice. It’s always vital to have access to robust, diverse, and reliable customer support when navigating the complexities of financial trading.

Prohibited Countries: Where Can I Not Trade with this Broker?

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In the realm of online trading, understanding the geographic restrictions of a broker is incredibly important. Unfortunately, as you investigate the operations of Deriv, it becomes apparent that this broker does not offer clear information about their prohibited countries list. It’s not readily apparent in which regions Deriv is allowed to operate, which could potentially lead to confusion for prospective users.

As a prospective client, you might wonder why such information is vital. The crux of the matter lies in regulations. Each country has its own set of regulations concerning financial trading. These regulations are put in place to protect both you and the broker. They dictate what a broker can and cannot do and protect your rights as a trader.

A broker may be prohibited from operating in a certain country for many reasons, such as the country’s local laws, the broker’s licensing conditions, or because the broker simply chooses not to do business in certain regions. This is why a list of prohibited countries is essential information. It instantly clarifies where you can legally use a broker’s services without violating any laws or facing unforeseen issues.

In the case of Deriv, it seems the only way to ascertain whether your country is permissible is to attempt to open an account. While this is certainly a way to gain clarity, it is far from convenient and can be off-putting for many potential users.

Most reputable brokers clearly display their permissible and prohibited countries list to provide transparency and make it easier for potential users to decide whether or not to sign up. However, Deriv’s approach forces prospective users to navigate an unnecessary hurdle. This lack of transparency might make some users question whether Deriv is the right broker for them.

While Deriv might offer a range of appealing features and services, the lack of clear information about their prohibited countries could be a significant drawback for many prospective users. Knowing if you can legally and comfortably use a broker’s services in your country is crucial, and brokers should ideally make this information readily available.

Special Offers for Customers

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As a user exploring the various services offered by the broker, Deriv, you’ll find that their special offers and promotions largely center around partnership programs. These programs include an Introducing Broker (IB) program, an Affiliate program, a Bug Bounty initiative, a Payment Agent program, and an API offering.

The first to consider is the IB program. As an Introducing Broker, you can earn a commission from your clients’ trades on Deriv MT5, Deriv’s proprietary trading platform. However, the specific commission plan you’re eligible for depends on your clients’ trading activities. In the absence of specific information on Deriv’s website, it’s safe to assume the exact commission scheme is disclosed when you sign up for the program.

The Affiliate program, on the other hand, allows you to earn up to a 45% lifetime commission from the net revenue generated by your referred clients’ trades on DTrader and DBot, two of Deriv’s trading platforms. The commission you earn here is based on a sliding scale depending on the net revenue generated by your clients.

In addition to these, Deriv offers a unique Bug Bounty program. If you have an eye for identifying potential security flaws, this program could be an interesting opportunity for you. You can earn rewards by identifying and reporting bugs in Deriv’s trading platforms or apps. Your contribution can help improve the security and user experience of Deriv’s services.

Another noteworthy program is the Payment Agent program. By signing up as a payment agent, you can expand your client base and earn additional revenue. As a payment agent, you’re an independent exchanger, able to set your own commission per transaction and offer your services to Deriv clients in your country.

Last, Deriv offers a powerful and flexible API (Application Programming Interface) that allows you to build a custom trading platform. By using the Deriv API, you can automate trading, integrate easily with other platforms, execute trades quickly, and personalize your trading apps to match your needs. Moreover, you can build a business around your trading apps by marking up contract prices or becoming a Deriv affiliate or payment agent.

You might be wondering about deposit bonuses or similar promotions. Unfortunately, as of the time of writing, Deriv does not offer deposit bonuses or similar special offers.

All these details can be found under the “partnership programs” section in the “about us” main menu section of the Deriv website. So, exploring these programs might be a good place to start if you’re looking for opportunities to earn additional income while trading with Deriv.

Deriv Review Conclusion: Reputable Broker with Easy-to-use Platform

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Deriv, as a broker, comes across as a largely reliable and secure option for traders. This claim is backed up by their adherence to international regulations and global presence, with offices located worldwide.

PIPPENGUIN

Deriv, as a broker, comes across as a largely reliable and secure option for traders. This claim is backed up by their adherence to international regulations and global presence, with offices located worldwide.

However, there seems to be a lack of transparency with some information, which might raise concerns among prospective users. It’s essential to note that any broker, including Deriv, should provide comprehensive and accessible information for their clients’ peace of mind. Nevertheless, from what we’ve gathered, it appears that Deriv maintains a level of safety measures to protect its users.

Summary and Key Takeaways

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Deriv is a broker with a wide range of trading assets catering to various trading preferences. These assets include forex, indices, commodities, and cryptocurrencies. In terms of trading resources, Deriv offers several platforms, such as DTrader, DBot, Deriv MT5, and an API for custom platform creation. There’s also a variety of account types, providing flexibility for traders of different experience levels. These range from demo accounts for beginners to various live accounts catering to specific trading styles.

FAQs

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Is Deriv a legal broker?

Yes, Deriv operates under the scrutiny of various global authorities, including the Malta Financial Services Authority (MFSA), the Labuan Financial Services Authority (Labuan FSA), the Vanuatu Financial Services Commission (VFSC), and the British Virgin Islands Financial Services Commission, thereby validating its legality.

Is Deriv a good forex broker?

Deriv sets itself apart as a reliable forex broker under FSA regulation, with beneficial features such as leverage up to 1:1 000 and low spreads starting at 0.5 pips. With minimum deposit amounts as low as $5 USD and a commendable trust score of 90/100, Deriv is a compelling choice for forex traders.

Is Deriv legit in South Africa?

Deriv is indeed a legitimate broker in South Africa, with authorization and oversight from several global financial regulators, including the Malta Financial Services Authority (MFSA), the Labuan Financial Services Authority (LFSA), the British Virgin Islands Financial Services Commission (BVI FSC), and the Vanuatu Financial Services Commission (VFSC).

Does Deriv offer Nasdaq?

Beyond doubt, Deriv offers traders the chance to trade Contract for Differences (CFDs) of top companies listed in major global financial markets. These include the New York Stock Exchange (NYSE), the Nasdaq, and the London Stock Exchange (LSE).