If you’ve heard the term synthetic indices then you most likely would’ve heard about the forex broker, Deriv. But the question is, what is Deriv and are they a good CFD provider, and how well do they treat their clients? All that and more are explored in this Deriv review article.
Throughout this Deriv review article, we seek to uncover what is so special about this CFD brokerage firm and how it managed to place itself at the forefront of the trading industry as one of the leading pioneers of some of the most unique artificial tradable financial assets in the vast heavily competitive forex industry.
SUBSCRIBE TO OUR YOUTUBE CHANNEL
What is Deriv LTD (General information)?
Deriv LTD is a worldwide broker that offers some unique trading instruments that have placed this CFD brokerage firm into a league of its own.
In today’s date, one cannot do a Deriv review without synthetic indices coming to mind, vise-versa. Deriv is a forex broker is based in the EU (European Union) that offers its financial products and services to over 2.5 million traders globally. This forex broker has expanded its global footprint by setting up a number of operating branches in different countries.
The broker boasts with over 22 years of experience in the industry under their belt. This clearly means that they have a good reputation and track record to have this much of a gigantic footprint within the forex trading industry, especially to be able to accumulate such a large mass of over 2.5 million forex traders along with 100+ financial trading instruments.
While on the topic of trading instruments, it is to be known that Deriv is the only broker to date to have created their own unique trading assets, namely, synthetic indices. Not only can you trade these highly lucrative financial products, but this CFD platform is also the only forex broker (to my current knowledge) that allows their traders to trade currency index [plural: indices].
Where is Deriv Located?
At the time of writing, Deriv is known to have a strong physical presence and operations spanning across the following countries:
- Dubai – UAE
- Malta – Malta
- Limassol – Cyprus
- Cyberjaya – Malaysia
- Labuan – Malaysia
- Ipoh – Malaysia
- Melaka – Malaysia
- London – UK
- Paris – France
- Guernsey – Channel Islands
- Asuncion – Paraguay
- Kigali – Rwanda
- Minsk – Belarus
The company carries out its unparallel financial services and products under the guise of different names in different places but with the same mission.
- Deriv Investments (Europe) Limited: is entitled to offer financial services to the populants of the European Union. In other words, clients from the EU who wishes to trade financial products can only do so by having accounts under Deriv Investments.
- Deriv (FX) Ltd
- Deriv (BVI) Ltd
- Deriv (V) Ltd
- Deriv (SVG) LLC
Let it be known sake of this Deriv review that the above-mentions are mere subsidiaries of Deriv Limited, which is the holding company for all of the companies listed.
Deriv Regulatory bodies
Continuing with the Deriv review, the company continues to grow into a world renown CFD forex provider, its operations continue to fall under the regime of different regulatory bodies. This goes without saying that among the top best forex brokers, Deriv, is a regulated financial service provider institution. The different regulatory body that governs the integrity of this forex trading platform are:
- Labuan Financial Services Authority
- British Virgin Islands Financial Services Commission
- Vanuatu Financial Services Commission
Additionally, the firm is also a member of The Financial Commission which is an international independent organization dedicated to resolving disputes within the financial services industry.
Currently, to date, Deriv doesn’t have any promotion going on, however, this does not affect their ability to attract global clients considering they have a number of different *trading methods* and multiple unique trading platforms that are solely offered by them.
A trader can trade Deriv financial assets in 3 methods, each with its unique earning potential.
CFD (contract for Difference)
A CFD allows a trader to trade the price movement of an asset, without buying the underlying asset(s) itself. In other words, this is the normal trading method that the average forex broker offers to their clients.
With Deriv however, you can enjoy the benefits of trading CFD with high leverage and tight spreads for better returns on successful trades.
High leverage — Leverage allows you to open larger positions with a smaller balance in your trading account. The higher the leverage, the less money you need.
Tight spreads — The spread is the difference between the buy price and sell price. The tighter the spread, the lower the cost to enter the market.
NB: Tight [Low] spreads means your trades will go blue (ie: in profit) much faster.
These are also two factors that are always considered when choosing among the top forex broker to trade with. Hence why Deriv is among Rhasfx Top Recommended Forex Brokers.
With this trading method, one can multiply their potential profit without risking more than their stake.
What are multipliers?
Deriv multipliers combine the upside of leverage trading with the limited risk of options. This means that when the market moves in your favor, “you’ll multiply your potential profits“. If the market moves against your prediction, your losses are limited only to your stake.
Please be mindful that this is somewhat similar to that of binary options but slightly different.
Assuming you are not familiar with the fundamentals of binary options, it is a form of trading where a trader can earn a fix payout from the price movement, if the price moves in the desired direction, or to be more precise if the price is above or below the point of entry by the timer runs out.
One of the main attributes that differentiate binary options from forex is the time constraints that come with every opened trade.
Deriv review: Trading platforms
- Binary Bot
Amount all the forex brokers that I know of, this broker ranks among the ones with the most trading platforms available. A trader can take advantage of Deriv many different trading instruments and methods from across a whopping count of six different trading platforms, most of which are fully owned, developed, and operated by them.
This is a web-based app that is used for trading options and multipliers.
This app is available as a web browser app, on the app store as well as the play store. It is primarily used for trading CFDs.
Another web based application that allows someone to automate their trading without coding knowledge.
Another binary options trading web-based platform provided by Deriv. However, this is the legacy* options trader. (ie: the first option trader developed)
5. Binary bot
Deriv very own classic bot builder and automated trading platform. This is used for creating binary options bots.
Another web-based platform that allows users to develop their own. Use their powerful, flexible, and free API to build a custom trading platform – for yourself or your business.
Deriv Trading fees:
Now its time to explore whether or not trading with the forex broker in topic is a profitable choice, or will it cut away in your profit with their trading conditions.
Are Deriv Spreads low/tight?
As outlined in the Rhasfx Glossary Spreads are the difference between the bid and ask price. To remain complete honest in this Deriv review, it should be said that their spreads are not the best, but they are definitely not the worst. Forex brokers such as ICmarkets and FxOpen do outrank Deriv in the category of tight spreads.
Please note that in this case, we are talking about forex currency spreads, and not other trading instruments.
With that said, do not let the above statements deter you from choosing Deriv as your main broker of choice because they do not fall far behind that of the 2 aforementioned tight-spreads brokers.
In layman’s terms, their spreads are tighter than most of their competitors.
Deriv review: Commissions
Among the top forex trading brokers, Deriv is among the few that do not offer a zero (0) spread account. As such they do not charge commissions for trading with them, especially as it regards to currencies and synthetic indices. But not to worry, their spreads are fairly tight enough to the point they’ll have a small impact on your profit.
NOTE: Commissions are “Commission in forex trading is the fee that your forex broker charges to your account for opening and closing a trade“, and are normally used to make up where tight spreads fall short. – Rhasfx glossary
As seen in the picture below, they do not charge commission on any of their trading accounts offered. (CLICK TO SEE PICTURE)
Deriv review: Swaps
For financial instruments, the swap charge is calculated based on this formula:
Swap charge = volume × contract size × point value × swap rate
This gives you the swap charge in the quote currency for forex pairs, or in the denomination of the underlying asset for commodities.
For example, if you are trading the USD/JPY forex pair, the swap charge will be computed in Japanese Yen (JPY) which is the quote currency. On the other hand, if you are trading oil, then the swap charge will be computed in US Dollar (USD), which is the denomination of the underlying asset – oil.
Before going any further, please bear in mind that according to Rhasfx Glossary, swaps are fees charged by your forex broker to carry any open trades over to the next trading day
For synthetic, the swap charge is calculated on an annual basis for long and short positions based on this formula:
Swap charge = volume × contract size × asset price × (swap rate ÷ 100) ÷ 360
This gives you the swap charge in USD.
You can visit their website by clicking the button below to find more information on their swap charges.
Deriv review: Trading Accounts
This broker is within alignment with NAGA.com, brokers that seem to have scraped MetaTrader 4 (MT4) and are fully focusing on delivering their trading services through MetaTrader 5 (MT5). In other words, if you’re a trader that loves to use Metatrader as a preference, then your only option is MT5, because Deriv does not offer MT4 live/ demo trading accounts.
While on that topic, it is worthy to note that Deriv only offer 3 different type forex trading accounts. Namely:
- Financial STP
Additionally, a trader is limited to creating a maximum of 4 trading accounts; One per server.
Currently, at the time of writing, this CFD trading broker in topic, Deriv Limited, does not offer any form of deposit bonus, welcome bonus nor have any ongoing promotion.
Deriv trading service
PAMM/ MAM (Percentage Allocation Money Management) is a unique trading service that allows an experienced trader to allocated and managed all his investor money more efficiently. However, it is unfortunate that Deriv does not offer PAMM/MAM services.
However, as it regards copy-trading, they do offer the ability for noob traders to copy the trades of experience traders through MQL5 signal service.
Their unique partnership with Metaquotes allow them to have a white label signal service by the name of “DMT5 SIGNALS”.
However, an MQL5 account is still needed to utilize this service to its fullest.
Deriv review: Trading instruments
A trader can trade over 100+ financial assets when using this broker. The tradable financial instruments offered by this unique FX broker span across a total of 5 different markets.
- Synthetic Indices
- Stock & Indices
Can you trade Currency indices?
YES! you read right, unlike the average forex broker, with a forex trading MT5 account with Deriv, you can literally open positions and directly trade currency indices as if you were trading a normal currency pair.
The currency indices offered by Deriv are:
- USD (DXY)
- AUD (AXY)
- EUR (EXY)
- GBP (BXY)
- GOLD (XAU)
Deriv review: Transactions
At this point in the article, let’s take a look at how Deriv handles the financial transactions of their clients.
The minimum deposit of Deriv is as low as $5. A small amount which can be fitted in any budget.
Deposit and Withdrawal fees
Unlike some forex brokers, Deriv does not charge any fees for depositing and withdrawing money from them. Another way that they are putting more money in your pockets from all your hard-earned trading profits.
Withdrawal processing time
Another thumbs up that is awarded to this broker is the speedy processing time for their client transaction. However, the processing time is highly dependent on the deposit/withdrawal method chosen. Luckily, they offer a wide range of deposit methods for all their clients to make use of.
Deriv review: Withdrawal/ Deposit methods
- Intant Bank Transfer
- Help 2 Pay
- Dragon Phoenix Concierge Payments
- Zing pay
- VISA electron
- Diners Club International
- Perfect Money
- PaySafe Card
- Pay Livre
- Online Naira
- USD Coin
- X ANPOOL
- Deriv peer to peer
Does Deriv Accept PayPal?
PayPal being the largest online payment gateway, it would’ve been so convenient to be able to deposit and withdraw with PayPal. But, unfortunately, Deriv doesn’t accept PayPal nor US residents for that matter.
Deriv review: Support:
Being around for 20+ years, they had more than enough time to invest and improve their customer service. That goes to say that their customer service is among the best forex trading brokers.
Additional Note about Deriv
The following information could be valuable to you if you are planning on trading Deriv synthetic indices (not sure about the other financial assets) with an expert advisor.
On the DMT5 demo account, an expert advisor would work fine according to the parameter implemented in its settings and codings.
However, when that said EA is placed on a DMT5 live account, that EA will not close the trade unless it is using stop levels (take profit and/or stop loss).
This is speaking from experience, even after contacting the support team, they were no help whatsoever. So my recommendation is that you:
- Close the trades manually after being opened by the EA
- Use stop levels. ie: TP & SL (<<< RECOMMENDED)