Deriv

Deriv is a large and well-established broker with a focus on binary options, CFDs and multipliers. With a Deriv account, you get access to both proprietary trading platforms and the independent third-party platform MetaTrader 5 (MT5).

Deriv offers 24/7 trading, 100+ instruments and payouts up to 100%.

The smallest deposit is just $5 and the smallest trade is $1, so this is a broker that works well even for traders on a small bankroll.

You don´t need to make a first deposit to try out what Deriv has to offer, as you can sign up for a free Demo Account filled with play-money. This way, you can make a more informed decision without risking a cent.

To promote responsible trading, Deriv has installed a feature that makes it possible for traders to self-exclude from certain products and set limits for their trading activities, e.g. a limit on the amount of money that can be traded or a limit on possible losses within a pre-defined period of time.

A downside with Deriv is that even though the support is open 24/7, it is sometimes staffed with support robots instead of humans.

Important: Selling and distributing binary options to retail traders is prohibited in certain jurisdictions, so depending on your location, you might no be offered binary options in your Deriv account if you are a retail trader. One example is the European Union, where the distribution and sale of binary options to retail clients is banned.

Account types

  • Deriv does not offer more than one account type for real-money trading. Even if you are a micro-trader making a $5 first deposit, you will get access to everything.
  • A free Demo Account is available for play-money trading, to allow you to check out what Deriv has to offer and learn how to trade with Deriv without risking any real money. Unlike some other brokers, Deriv does not limit the amount of play-money in your account. All platforms and trading tools are available, and there is no time limit for how long you can use the Demo Account. You can for instance learn how to use the automated strategy builders without using any real money. You only need your email address to open a free Demo Account; there is no lengthy identification process or similar involved.

Platforms

Through your Deriv account you can access several trading platforms, including MT5, DTrader, Deriv X and SmartTrader.

MT5

MetaTrader 5 (MT5) is one of the most famous of the independent third-party trading platforms and it is used by a wide range of brokers and for a variety of instruments.

DTrader

The Dtrader platform has a simple interface and can be customized in various ways. There are 50+ instruments available for trading, including binary options with a trade duration from 15 seconds to 356 days. The minimum trade stake for binary options is 1 USD. A majority of the binary options are based on forex, commodities, indices, derived synthetics, or baskets. Several types of binary options are available, e.g. high/low and touch/no-touch. Payout percentages are displayed automatically.

For those interested in charting and technical analysis, this platform comes with four chart types, over a dozen timeframe views, 9 drawing tools, and 20+ technical indicators and widgets.

Mobile apps

You will have access to the MT5 mobile app and the Deriv GO mobile app.

The main focus of Derivs mobile offering is CFDs and Multipliers.

Certain binary options contracts that are available on desktop computers are not available when trading on a mobile device, which is a big minus and hopefully something that will be fixed in the future.

Automated trading

The DBot and Binary Bot are automated trading solutions that support 50+ assets. The Binary Bot is only for binary options, while the Dbot has a wide range.

Use the simple drag-and-drop interface to create your own customized trading strategies, or use one of the three pre-programmed strategies.

Binary options

Important: In some jurisdictions, the sale and distribution of binary options to retail traders is prohibited.

Examples of underlyings available for binary options are forex (foreign currency), commodities, derived synthetics, and baskets. Chose among over 100+ underlyings and enjoy competitive payouts up to 100%.

The minimum contract size is just 1 USD.

Examples of available currency pairs (forex) are EUR/USD, USD/CAD and AUD/NZD.

Examples of available commodities are gold, silver and oil.

Examples of available indices are the S&P500, FTSE100 and GER40. Both U.S., European and Asian indices are represented.

Basket indices

With the nifty basket indices, you can trade commodities or forex against a collection of major currencies. There is for instance the gold basket, where the gold price is traded against a basket of USD, EUR, GBP, JPY, and AUD.

Derived synthetics

At Deriv, the derived synthetics are indices that simulates real-market movements, but it is only a simulation and this is important to remember when you decide if you want to speculate on derived synthetics or not.

Is leverage available for binary options?

No, at Deriv, traditional leverage is only available for the CFD trading.

There is, however, the Multipliers feature. It is a bit similar to leverage, but comes with a capped risk. If the market moves in your favour, the profit is amplified with the multiplier, e.g. 10x. If the market moves against you, you will lose – but not more than your initial stake. There is an automatic stop-out that will activate to prevent you from losing more than the initial stake.

Contracts for Difference (CFDs)

  • Deriv offers a large selection of Contracts for Difference (CFDs). Examples of underlyings are forex, cryptocurrency and Deriv´s synthetics.
  • Tight spreads (from 0.5 pips) on major forex pairs can be combined with commission-free trading.

Important: Swap rates apply to any position kept open overnight.

Is leverage available for CFD trading?

Yes. The maximal leverage for CFD trading at Deriv is 1:1000. What you will actually be offered depends on various factors.

Please note that some jurisdictions impose leverage limits on retail clients.

Deposits & Withdrawals

There are over 30 different transaction methods to chose from, including credit/debit cards, bank transfers, e-wallets and Bitcoin transfers.

The minimum deposit is only 5 USD, although certain deposit methods will require larger deposits so make sure you pick a method in accordance with your preferences. For Bitcoin deposits, there is no lower limit.

Fees

Derivs does not charge deposit fees or withdrawal fees.

Can I use cryptocurrency?

Yes, Bitcoin is an accepted currency for both deposits and withdrawals at Deriv. At the time of writing, the minimum withdrawal is 0.0022 BTC. There is no lower limit for BTC deposits.

A few examples of accepted transaction methods

  • Instant Bank Transfer. Only available for USD. Minimum deposit and withdrawal is 5 USD and maximum deposit and withdrawal is 50,000 USD. With Dervis, you can expect one-day processing time for both deposits and withdrawals.
  • Credit cards and debit cards, including Visa, MasterCard, Maestro, and Diners Club. Available for USD, EUR, GBP and AUD. Minimum deposits and withdrawals are 10 USD, while the maximum for deposits and withdrawals is 10,000 USD. Deposits are processed instantly. Withdrawal requests are typically processed within a day.
  • Neteller is available for traders in certain countries. It can be used for USD, EUR, GBP and AUD. Minimum deposits and withdrawals are 10 USD, while the maximum for deposits and withdrawals is 10,000 USD. Deposits are processed instantly. Withdrawal requests are typically processed within a day.

Customer support

Customer support is only available through live chat and Whatsapp, which is a downside for some traders.

The customer support is open 24/7, but sometimes you will run into a customer service bot instead of human and there is no guarantee that you will be transferred to a human even if you ask for it.

About the broker

You may not be familiar with the name Deriv, but maybe you have heard about Binary.com? After two decades of operating as Binary.com, this broker decided to change its brand and become Deriv. The rebranding took place in 2020.

Even though the brand name Deriv is fairly new, this is thus a well-established online broker and one of the pioneers in its field. It currently has around 2.5 million trading clients around the world and a monthly trade turnover exceeding $10B.

Regulation

Deriv works through subsidiaries around the world and have offices in over a dozen countries, including Cyprus, Singapore and Dubai.

It holds several licenses:

  • A license from Malta´s Financial Services Authority (MFSA).
  • Deriv (FX) Ltd holds a license from The Labuan Financial Services Authority (LFSA).
  • Deriv (V) Ltd holds a license from The Vanuatu Financial Services Commission (VFSC).
  • Deriv BVI Ltd holds a license from The British Virgin Islands Financial Services Commission (BVI).

Of these four license providers, the MFSA is considered the most strict and reputable. Malta is a member of the European Union, and the license requirements can therefore not be less strict than those stipulated by the EU. The European Securities and Markets Authority (ESMA) banned the distribution and sale of binary options to retail clients several years ago. You must therefore fulfil certain requirements and go through the process of being classified as a non-retail trader to gain access to binary options within the European Union. You can contact the Deriv customer support for more information.

The other three license providers are not considered top-tier when it comes to consumer/retail trader protection. This definitely has its downsides from a trader perspective, but is also the reason why they haven´t banned retail binary options.

Short facts about Deriv

About the trading

Expiry times for CFDs: From 15 seconds to 365 days

CFD leverage: Up to 1:1000

CFD FTSE Spread: From 0.5

CFD GBPUSD Spread: From 0.5

CFD Oil Spread: From 0.5

CFD Stocks Spread: Variable

Forex GBPUSD Spread: From 0.5

Forex EURUSD Spread: From 0.5

Forex EURGBP Spread: From 0.5

Crypto spread: From 0.5

Cryptocurrencies available for speculation: BTC, ETH, LTC, USDC, USDT

Crypto lending: No

Crypto staking: No

Crypto Auto Market Maker: No

Platforms

MetaTrader 4 (MT4): No

Metatrader 5 (MT5): Yes

cTrader: No

Mobile trading apps: Yes, for iOS and Android

Account types

Islamic Account: No

Ethical investment account: No

STP Account: No

ECN Account: No

DMA Account: No

MAM Account: No

PAMM Account: No

LAMM Account: No

Demat Account: No

Margin trading

Margin trading: Yes

Negative balance protection: Yes

Features & tools

Auto trading: Yes, with Dbot

Copy trading: Yes

Trading signals: Yes, on the MT5 platform

Social trading: No

P2P Trading: No

AlgoTrader: No

OmniTrader: No

TradingView: No

Autochartist: No

eSignal: No

Trading Central: No

AI/Machine learning: No

Robo Advisor: No

Deposits and withdrawals

Minimum deposit: 5 USD

Account currencies: USD / EUR / GBP / AUD

Transaction methods:

Miscelaneous

Regulators/licenses: MFSA, LFSA, VFSC, BFSC

Market Maker: No

VPS Hosting: No

Two-factor authentication: Yes, you can enable two-factor authentication (2FA) for your account

Tournaments: No

Demo Competitions: No