Deriv, although it emerged in mid-2020, is essentially a new platform built by the renowned and long-standing broker Binary.com, with an impressive campaign of innovation and development. Let’s follow the review below to see the excellent improvements Deriv brings to traders.
For binary options traders – a form of trading based on the future volatility of underlying assets such as forex, gold, stocks, etc. – the name Binary.com has become familiar. As the oldest binary options broker and consistently ranking among the top reputable brokers worldwide, this industry giant currently provides a diverse range of financial services, including binary options, CFDs, and forex, to millions of clients globally.
Celebrating 20 years of development and continuous innovation, the new name Deriv emerged as a newly developed and supported brokerage platform by Binary.com. However, it is not just a “new name” for a famous broker; Deriv has introduced a series of notable improvements, such as the advanced DMT5 platform and the automated trading system Dbot, promising excellent trading experiences for traders.
In this article, Coivn98 will evaluate Deriv as well as guide you on how to register a trading account with this broker.
1. General introduction to Deriv
Deriv is a new forex and CFD broker introduced in May 2020, but its story began over 20 years ago. The broker was officially established in 1999 in Malta, providing binary options trading services and is owned by the Regen Markets group, sponsored by Regent Pacific Group Ltd., a company listed on the Hong Kong stock market.
In 2001, Regent Markets launched BetOnMmarket.com, the first platform providing binary options for retail traders. Over the years, this broker has been recognized by the trading community as a safe and reliable online trading platform, earning many impressive awards in the financial market. In 2013, BetOnMarkets.com was renamed Binary.com, and in May 2020, Deriv.com – a new platform operating alongside Binary was introduced. This is considered a step forward for this broker.
Although initially created solely to offer binary options, Deriv now provides access to various markets, including forex and CFDs on cryptocurrencies, indices, and commodities. The broker still deserves to be at the top among reputable brokers, having sustained operations for a long time, not succumbing to the harsh market conditions.
Furthermore, Deriv compensates for its name changes and continuous innovations and upgrades with impressive technological features and added benefits. Therefore, despite the young and unfamiliar name, traders are, in fact, dealing with one of the long-standing brokers in the financial market.
The mission that this new platform pursues is to provide a better trading experience for traders with a more user-friendly interface, diverse trading asset options compared to its previous platform Binary.
Currently, Deriv has nine official offices in six countries: Malta, Dubai, Malaysia, Paraguay, Cyprus, and Rwanda, along with numerous representative offices in more than 40 other countries worldwide, employing over 400 staff and over 1.8 million trading accounts opened, with a total trading value of over 8 billion USD. However, its online trading services are not available in some countries, including the United States, Canada, and Hong Kong.
Below is general information about Deriv that I have summarized for you before delving into a detailed review:
- Broker name: Deriv
- Year of establishment: 1999
- Official offices: 3rd Floor, Triq Dun Karm, Birkirkara BKR 9033, Malta, and 8 other offices in Dubai, Malaysia, Paraguay, Cyprus, and Rwanda.
- Regulatory agencies: Malta (MFSA), Labuan (LFSA), Vanuatu (VFSC), British Virgin Islands (BFSC)
- Official website: https://deriv.com/
- Contact methods: Phone number: +44 1942 316229 and Email: support@deriv.com.
Trading tools: CFD, Forex, Binary options
- Trading products: +50 forex pairs, stock indices, composite indices, commodities
- Minimum deposit: €/£/$5
- Maximum leverage: 1:3000
- Demo account: Available
- Minimum trade volume: 0.01 lots
- Trading platform: MT5
- Automated trading: DBot
- Copy-trading: Available
- Overnight fees: 2% (adjustable)
My first impression of Deriv’s official website shows professionalism and attention to detail with comprehensive and transparent information. In addition, despite being newly established in mid-2020, the trading platform has received favorable ratings from the international trader community (4.1/5) on the professional broker review website Trustpilot. I believe that Deriv has the potential to become one of the reputable brokers where traders can experience with peace of mind.
Below is a detailed review:
2.1 Legal status of Deriv
For me, the most important criterion before evaluating a broker’s credibility is whether the broker is licensed and regulated by reputable financial regulatory agencies. In this case, there is no doubt about the legality of this broker, as Deriv is regulated not by one or two but seven financial regulatory bodies worldwide. Acquiring seven different licenses from multiple regulatory authorities is truly impressive.
In the EU, the financial products provided by Deriv Investments (Europe) Limited, W Business Centre, 3rd Floor, Triq Dun Karm, Birkirkara BKR 9033, Malta, are licensed as a Category 3 Investment Services provider by the Malta Financial Services Authority (MFSA) (license number IS/70156).
Outside the EU, financial products are offered by the following companies: Deriv (FX) Ltd, F16, Level 1, Paragon Labuan, Jalan Tun Mustapha, 87000 Labuan, Malaysia, licensed by the Labuan Financial Services Authority (Labuan FSA) (license number MB/18/0024); Deriv (BVI) Ltd, Kingston Chambers, P.O. Box 173, Road Town, Tortola, British Virgin Islands, licensed by the British Virgin Islands Financial Services Commission (BVI-FSC) (license number SIBA/L/18/1114); Deriv (V) Ltd (see license), 1276, Kumul Highway, Port Vila, Vanuatu, licensed and regulated by the Vanuatu Financial Services Commission (VFSC); Champion Group Ltd (see license).
Furthermore, Deriv is also licensed and regulated by other agencies such as the Isle of Man Gambling Supervision Commission, the UK Gambling Commission, and the Malta Gaming Authority. Deriv is also a member of The Financial Commission – an independent international organization specialized in resolving disputes in the financial services industry.
With such a high level of regulation, I can trust that Deriv is a well-managed and transparent broker, and investors can trade with confidence, knowing that their rights will not be compromised in case of disputes.
2.2 Trading accounts on Deriv
Unlike other brokers with various types of accounts, Deriv offers two types of accounts: Demo and Real accounts.
Demo account
After confirming your email address, you will receive a demo account with a virtual balance of $10,000 (approximately 230,000,000 VND). This demo account allows you to trade on all markets provided by Deriv using either SmartTrader or DMT5 platforms.
Real account
To open a real account, you need to provide your personal information, including name, address, and phone number. Then, the system will ask you to choose the base currency for your account, which can be a legal currency or a cryptocurrency.
Legal currency options include USD, GBP, EUR, and AUD, while cryptocurrency options include BTC, ETH, LTC, and USDT. After depositing funds, you can use Smarttrader, DMT5, or DBot platforms for trading. You need to pay special attention to choosing the base currency for your account because you will be charged a conversion fee when converting from one currency unit to another.
2.3 Trading platforms and trading applications on Deriv
This broker offers four main trading platforms: DTrader, SmartTrader, DMT5 (Meta Trader – both webtrader and downloadable versions), and Dbot.
The Dtrader platform
DTrader is a simple and customizable platform with a clear interface offering over 50 trading assets. Additionally, the charts can be customized to meet the trader’s needs with various technical indicators. The trade types can also be customized with position sizes as low as $0.035 and flexible trading durations ranging from 1 second to 365 days.
Apart from providing digital options like Rise/Fall, Higher/Lower, and Touch/No touch, Multiplier option, and Smart FX, Deriv also offers other exotic options such as Even/Odd. You will win an Even lot trading if the last digit of the final tick is even, and you will win an Odd lot trading if the last digit is odd.
Therefore, DTrader is a noteworthy development among trading platforms, promising to offer users an optimized trading experience.
Dbot Platform – Automating Trading Ideas Without Programming Knowledge
The Dbot platform provides traders with a simple tool to set up trading bots through pre-built algorithms in just 5 basic steps, and it is entirely free to use on over 50 assets. With easy drag-and-drop functionality and preset blocks and indicators, you can create your own bot intuitively without the need for programming or coding.
Moreover, you can use analysis tools, indicators, and smart logic like take profit and stop-loss to optimize profit and loss limits. Additionally, Dbot includes a performance monitoring feature, allowing you to check the effectiveness of your bot for each trade and receive notifications through Telegram.
MetaTrader 5 (DMT5) – Integrated FX and CFD Trading Platform
MetaTrader 5 (MT5), developed by MetaQuotes Software, allows traders to access various asset types – forex, stocks, and commodities – on a single platform. This platform also integrates relevant analysis and research tools. MT5 is user-friendly yet feature-rich, making it an excellent combination for traders at all levels, whether they are beginners or seasoned traders.
The platform is customizable, allowing traders to set up charts or trading areas according to their preferences with multiple open trading windows or movable as needed. Furthermore, DMT5 provides a diverse range of trading assets, with flexible leverage of up to 1:1000, and various trade sizes from micro-lots to standard lots.
On this platform, customers can trade CFDs and open three types of accounts: Synthetic MT5 Account, Financial MT5 Account, and Financial STP MT5 Account.
- Synthetic MT5 Account: Allows trading on synthetic indices, which simulate market movements in the real world based on historical data, unaffected by real-world events like central bank speeches, economic announcements, etc. The leverage for this account can go up to 1:1000. The prices of synthetic indices are not based on any real assets but are randomly generated through computer algorithms.
- Financial MT5 Account: Allows trading CFDs on major and minor currency pairs, commodities, and cryptocurrencies, with leverage of up to 1:1000.
- Financial STP MT5 Account: Allows trading CFDs on major currency pairs and exotic currency pairs, with leverage up to 1:100. Thus, the leverage is lower than the other two accounts, but it is still acceptable. With STP, traders have the opportunity to trade major, minor, exotic currency pairs, and cryptocurrencies with low spreads and higher trade volumes, directly entering the market.
Smarttrader Platform
Smarttrader is a platform specifically designed for trading binary options. This platform has a relatively different layout compared to the other platforms, but the most significant difference is that you can use much longer expiration times, up to 365 days.
2.4 Trading Assets & Markets
Deriv offers over 100 trading products across 4 main markets (Forex, Synthetic Indices, Stock Indices, and Commodities), including:
- Forex: Over 50 FX currency pairs, including major, minor, and exotic currency pairs.
- Stock Indices: Speculate on price movements of major US, Asian, and European stock indices. You can profit from market movements in large markets or financial regions without owning the underlying assets. These indices are sourced from over-the-counter (OTC) markets, providing competitive asset packages and allowing trading even outside regular stock exchange hours.
- Synthetic Indices: These are generated based on a cryptographically secure random number generator audited for fairness by an independent third party. Synthetic indices are designed to simulate real-market movements and are not affected by real-world events or natural disruptions. They are available 24/7, have non-stop fluctuations, predefined fixed time intervals, and are not impacted by market or liquidity risks.
- Commodities: Deriv offers precious metals like gold and silver, as well as energy commodities like crude oil.
In addition, Deriv provides the three most popular trade types:
- Margin Trading: On the DMT5 platform, traders can leverage higher with low spreads, trading on popular markets along with exclusive Deriv synthetic indices available 24/7. You can also take long and short positions depending on your preferred trading strategy.
- Options Trading: Fixed payoff, predictable trading. You can trade the following options on Deriv:
- Digits Options: Allows you to predict the outcome from two possibilities and earn a fixed payout if your prediction is correct.
- Lookbacks Options: Allows you to earn a payout depending on the highest or lowest optimum level reached by the market during the contract duration.
- Call/Put Spread Options: Allows you to earn a maximum designated payout depending on the exit spot relative to two barrier levels.
- Multiplier Trading: Combines the benefits of leverage trading with limited risk of options. This means that when the market moves in your favor, your potential profit is multiplied. If the market moves against your prediction, your loss is limited to your stake.
2.5 Spreads, Swaps, Commissions, and Leverage
- Spreads and Commissions: Deriv.com promises low spreads and minimal trading fees. While data on average spreads and commissions for the new Deriv system is still limited due to ongoing development, Binary.com, the predecessor of Deriv, was known for its competitive spreads and transparent fee structure. Note that a non-trading fee will be charged if the account remains inactive for 12 months.
- Swaps: If you hold any position overnight, an overnight interest adjustment (or swap) will be applied to your trading account to offset the cost of holding your position open. For Forex and Commodities, swaps are based on interbank lending rates, with an additional 2% fee charged daily (per night) to keep your position open. Swap fees also depend on the time and day you hold your position open and may be adjusted on holidays.
- Leverage: Deriv provides flexible leverage of up to 1:1000. This allows users to have larger position sizes with a smaller deposit, known as margin, to increase potential profits. Leverage requirements and levels differ depending on the account and legal jurisdiction you register with. For example, in the EU, retail traders are limited to a maximum leverage of 1:30 on major FX currency pairs.
2.6 Deposits/Withdrawals on Deriv Exchange
Deriv offers a variety of payment methods, including credit/debit cards, bank transfers, e-wallets, and cryptocurrencies. Your deposit options should also be denominated in the base currency of your account to save on conversion costs. The trading platform does not offer deposit bonuses..
Deposit and Withdrawal Options on Deriv Exchange
Deposit Options:
- Bank Transfer: Minimum deposit of $5, and most deposits are processed instantly.
- Credit/Debit Cards: Both Visa and Mastercard can be used with a minimum deposit of 10 USD/GBP/EUR/AUD. Deposits via credit and debit cards are processed instantly.
- E-wallets: Popular e-wallets such as Skrill, Neteller, PaySafe, Fasapay, and WebMoney are accepted for payments on Deriv. These wallets support instant deposits, and the minimum deposit required is $5 (approximately 116,000 VND) for quick funding.
- Cryptocurrencies: You can deposit funds into your allowv.com account using Bitcoin, Ethereum, Litecoin, and Tether. There are no minimum deposit requirements when using cryptocurrencies, and the payments are processed within three blockchain confirmations.
Withdrawal Options:
You can withdraw funds from your Deriv.com account using all the same payment options for deposits. Depending on the provider, withdrawals via bank transfer start at 5 of your account’s base currency and are processed within 1-2 business days. The minimum withdrawal via credit/debit cards is 10 of your account’s base currency and is processed within one business day.
Note that MasterCard and Maestro are applicable only to traders in the UK. For e-wallet withdrawals, you need to withdraw a minimum of 5 of your account’s base currency. This amount will be processed within one business day. Additionally, when withdrawing funds with cryptocurrencies, Bitcoin offers a minimum withdrawal of 0.0026 with a withdrawal time of one business day plus three blockchain confirmations.
The absence of any deposit/withdrawal fees makes Deriv one of the most accessible and cost-effective brokers for funding and withdrawing funds.
How to Register an Account on Deriv Exchange
Opening an account with Deriv.com is simple and straightforward. You can use your Facebook and Google accounts to log in to the exchange and customize options according to your preferences.
If you already have a Binary.com account, you can use that account to log in and trade on Deriv.
If you don’t have an account, visit the official Deriv website, click on “Create a Free Practice Account,” and a window will appear prompting you to enter your email address. Tick the box agreeing to the Terms and Conditions, then click on “Create a Free Practice Account.” Deriv will send a confirmation email to your registered email address, and once you confirm, you can start trading.
Conclusion
Deriv, though a relatively new name since mid-2020, is backed by a well-established player in the market. The rebranding and significant overhaul involve not only technological advancements but also incredible benefits for traders. Deriv, formerly Binary.com, is proving its leading position among global brokers with licensed and regulated services by seven reputable financial authorities.
With a minimum deposit of only $5, a generous $10,000 Demo account, and a unique, advanced trading platform, Deriv offers numerous advantages to traders. Overall, with 20 years of experience serving over 300,000 global customers, Deriv stands as a reliable broker for traders to trade with confidence.
