Is Deriv a legit broker or a scam

If you are tired of the standard approaches to binary options trading and ready to try new tools that no other broker offers, Deriv is the right choice. This company provides its clients with new asset classes, such as synthetic and tactical indices. It offers unusual platforms like Deriv X and Deriv Bot, designed to implement even the most complex trading strategies, including algorithmic trading. In this review, we will carefully explore all aspects of Deriv's operations, from regulation and the safety of client funds to the specifics of trading conditions on different platforms.

Table of contents:

• Is Deriv Legit?
• What is Deriv?
• History and statistics of the Deriv broker
• Regulation

1. Jurisdictional Considerations
2. Restricted Jurisdictions

• Security of Funds and User Data
• Deriv Awards
• User satisfaction
• Account Types
• Trading Assets
• Deriv Trading Hours (GMT)
• Deposit and Withdrawal

1. Accepted payment methods
2. Currencies

• Do I have negative balance protection with this broker?
• Deriv fees & commissions

1. Non-trading fees
2. Spreads

• Demo account
• Trading platforms

• Mobile app
• Technical platform issues
• Deriv affiliate program
• Customer support
• Research & Education
• Is it easy to open a Deriv account?
• How to trade on Deriv?
• Who should consider using Deriv?
• Pros and cons of Deriv
• What's New on Deriv in 2024?
• Should you trade binary options on Deriv?
• FAQ

Is Deriv Legit?

Deriv is a fully legal platform for trading binary options. The wide variety of trading terminals and the ability to automate and copy the trades of professionals significantly distinguish this brokerage from its competitors. In this Deriv review, we have carefully examined all aspects of the broker's operations, and here are the key points we want to highlight:

• Six independent organizations regulate the broker.
• Clients of this company have access not only to standard trading assets, such as currency pairs, stocks, indices, commodities, and cryptocurrencies, but also to unique assets that no other binary options broker offers: synthetic and tactical indices.
• Traders praise the seven Deriv platforms for their ability to implement any, even the most complex, strategies, including automated trading.
• The broker boasts the largest selection of binary options in the industry. Traders have access to 17 types of options contracts, which allow them to create any trading strategies imaginable.
• All platforms offer a demo account, making it easy for beginners to learn and practice new trading strategies without risking real funds.
• Deriv offers a wide range of payment systems, simplifying the process for traders to deposit and withdraw funds.

Numerous positive reviews from traders confirm that Deriv is the most innovative broker.

What is Deriv?

Deriv is an exciting and unique binary options broker. With a rich history, the company started its activities in 1999 under Binary.com. Since then, the platform has undergone many transformations, modernized trading terminals, and constantly improved conditions for its traders.

This year, Deriv celebrated its 25th anniversary. For all these years, the company has been striving to make trading accessible to everyone. During this time, Deriv has grown from a small brokerage firm to one of the most prominent players in the market, serving more than 2.5 million clients worldwide.

Consider these impressive numbers:Deriv processes over $46 million in monthly withdrawals through its brokerage accounts, while traders execute more than 187 million trades with a total volume exceeding $15 trillion.

Deriv operates under the ownership of Deriv.com Limited, a holding company registered in Guernsey, a jurisdiction under the British Crown. The holding comprises six entities: Deriv (SVG) LLC, Deriv (Mauritius) Ltd, Deriv (V) Ltd, Deriv (BVI) Ltd, Deriv (FX) Ltd, and Deriv Investments (Europe) Limited.

The company also holds membership in The Financial Commission, a self-regulatory organization dedicated to resolving disputes in the financial services sector.

History and statistics of the Deriv broker

The table below outlines the stages of Deriv's development:

Regulation

Deriv is one of the most regulated brokers in the binary options industry. The company holds six licenses from various regulators, highlighting its serious approach to ensuring legal compliance. This is especially important given that Deriv offers broker services in binary options and Forex.

The broker operates in various regions worldwide, which requires compliance with local regulatory requirements. This broad geographical reach and attention to legal aspects make Deriv a reliable trading platform for traders seeking security.

Deriv broker conducts in Europe with a license granted by the Malta Financial Services Authority. Outside the European Union, the company relies on licenses from jurisdictions such as Labuan (LFSA), the British Virgin Islands (BVI), and Vanuatu (VFSC).

Additionally, the binary options broker Deriv participates in the self-regulatory organization The Financial Commission. This organization specializes in resolving disputes between traders and brokers in its network, ensuring objectivity and protecting the interests of both parties.

Jurisdictional considerations

Deriv Investments (Europe) Limited, registered on April 22, 2015 (company number C 70156), is in Malta. The legal address is Level 3, W Business Centre, Triq Dun Karm, Birkirkara BKR 9033.

Deriv (FX) Ltd (company number LL 13394) completed its registration on January 18, 2017, in the Federal Territory of Labuan, Malaysia. The legal address is Unit No. 3A-16, Level 3A, Labuan Times Square, Jalan Merdeka, 87000, Federal Territory of Labuan, Malaysia.

Deriv (BVI) Limited (company number 1841206) completed its registration in the British Virgin Islands on September 15, 2014. The legal address is Kingston Chambers, P.O. Box 173, Road Town, Tortola, British Virgin Islands.

Deriv (V) Ltd (company number 014556) completed its registration in the Republic of Vanuatu on February 17, 2016. The legal address is 1276, Govant Building, Kumul Highway, Port Vila, Republic of Vanuatu.

Deriv (Mauritius) Ltd (company number 209524) completed its registration in the Republic of Mauritius on June 11, 2024. The legal address is The Cyberati Lounge, Ground Floor, The Catalyst, Silicon Avenue, 40 Cybercity, 72201 Ebène, Republic of Mauritius.

Deriv (SVG) LLC has its registered office on the First Floor, SVG Teachers Credit Union Uptown Building, Corner of James and Middle Street, Kingstown P.O., St Vincent and the Grenadines.

Deriv.com Limited, a company registered in Guernsey, is the holding company for these legal entities.

Restricted jurisdictions

You cannot start trading on Deriv if you reside in or hold citizenship from the following countries:

Belarus (BY), Canada (CA), Caribbean Netherlands (BQ), Cayman Islands (KY), Guernsey (GG), Guam (GU), Hong Kong (HK), Israel (IL), Iran (IR), Isle of Man (IOM), Jersey (JE), Jordan (JO), Malaysia (MY), Malta (MT), Northern Mariana Islands (MP), North Korea (KP), Paraguay (PY), Puerto Rico (PR), Rwanda (RW), Sint Maarten (SX), Singapore (SG), South Sudan (SS), United Arab Emirates (UAE), U.S. Minor Outlying Islands (UM), U.S. Virgin Islands (VI), United States (US), Vanuatu (VU).

Security of Funds and User Data

Deriv offers all clients the option to create strong, complex passwords. We found that using specialized online tools to generate passwords of any complexity works best, so we recommend relying on these resources instead of creating passwords on your own.

For additional security, protect your Deriv account using reliable and secure web browsers like Google Chrome, and remember to update your software regularly. These updates often include critical security patches.

Permanently activate two-factor authentication to significantly reduce the risk of unauthorized access to your Deriv account.

Deriv provides an option to set limits on trading funds to enhance safety. With this feature, Deriv clients can:

• Restrict the funds they use for trading within a specified period.
• Limit potential losses over a defined time frame.
• Control the time they spend in any active session on the platform.
• Block their access to trading on the platform for a specific or indefinite period.

Deriv Awards

In January 2024, Deriv solidified its position as one of the world's largest trading platforms by earning the prestigious Platinum accreditation from Investors in People. Deriv's award places the company at the forefront of human resources practices.

At the Finance Magnates Awards 2024, Deriv received awards in two categories simultaneously: "Broker of the Year – Global" and "Most Trusted Broker – Africa". These awards recognized the company's 25 years of work to popularize binary options worldwide. This success again confirms that Deriv is one of the leading brokerage companies in the binary options market.

At the first annual FX Trust Score Awards, Deriv received the "Best Partner Programme" award for its unique partner support, which includes personalized commissions, comprehensive marketing tools, and advanced real-time reporting and analytics.

User satisfaction

To form an objective opinion about the broker, we studied Deriv reviews on reputable platforms. Here's what we found.

Account Types

The Deriv CFD accounts are divided into three types:

For options trading, there is the Deriv X account, supported by six trading platforms:

As shown in the tables above, Deriv offers CFD accounts for trading through the popular MetaTrader 5 (MT5) platform in the FOREX market. If you prefer binary options, we recommend choosing the Deriv X account. With this account, you can access six platforms, including the Deriv GO mobile app, Deriv cTrader, and Deriv X, with the option to trade through the TradingView platform.

The Standard account allows you to trade synthetic indices, asset baskets, and currency pairs. The Financial account suits traders who prefer to trade CFDs on financial instruments such as stocks, cryptocurrencies, commodities, and stock indices.

The advantage of the Deriv X trading account is the ability to use all the assets mentioned above and a wide range of different trading platforms.

Trading Assets

Deriv clients have access to over 100 financial instruments for trading, including currency pairs, commodities, stocks, synthetic indices, and other assets.

The maximum payout per trade is 96%. Please be aware that this broker does not provide assets with OTC quotes. Instead, Deriv provides synthetic indices, which are essentially over-the-counter assets. The quotes for these financial instruments are generated randomly and do not depend on macroeconomic indicators.

Deriv divides all synthetic indices into categories:

1. Volatility Indices – operate like traditional exchange-traded assets.
2. Crash/Boom Indices – reflect price increases or decreases over a set number of ticks. The exact movement of these assets is unpredictable, as their price can change slightly or drastically.
3. Step Indices – prices change in fixed increments of 0,1.
4. Range Break Indices – trade within a specific range.

The main drawback of synthetic indices is that predicting future price movements is impossible, as external factors do not influence these assets.

The only exception is the volatility indices, which are subject to technical analysis. We analyzed the charts of these indices and found that they can move in a trend, within a channel, or from horizontal levels.

The Deriv offers seventeen types of binary options:

• Rise/Fall
• Up/Down
• In/Out
• Stay In/Break Out
• Match/No Match
• Even/Odd
• Higher/Lower
• Reset Call/Reset Put
• High/Low Tick
• Touch/No Touch
• Asian
• Only Up/Down
• Maximum-Close
• Close-Minimum
• Maximum-Minimum
• Call Spread
• Put Spread

No other broker offered a wide range of binary options when writing the Deriv review.

Deriv Trading Hours (GMT)

On the Deriv platform, stock markets open and close according to the schedule of each trading session. In contrast, Forex and commodities remain available for trading 24/5, from Monday to Friday. CFDs on cryptocurrencies and synthetic indices trade around the clock, 24/7.

Deposit and Withdrawal

You may select from various 20+ payment methods to fund your account, with the available options depending on your country of residence. Your account dashboard displays only the methods approved for use in your region.

Accepted payment methods

The minimum deposit with Deriv starts at $5, but the exact amount depends on the chosen payment method. For example, most e-wallets accept deposits of $5, except for Skrill, which requires a minimum of $10. Deposits via VISA cards also need at least $10, while bank transfers demand a minimum of $500.

If you want to avoid minimum deposit limits, we recommend using cryptocurrencies. However, remember to open an account in one of the available digital currencies to trade with cryptocurrencies.

If you have opened multiple accounts (such as Deriv Trader and Deriv MT5), you can quickly transfer funds between them. There are no withdrawal fees, and the broker does not charge deposit commissions either.

Please note that Deriv processes client deposits only during business hours, so we recommend you check this with customer support. In the table below, we have listed the most popular deposit and withdrawal methods. The "Instant" status indicates that the system automatically credits funds to your account.

Typically, you can withdraw funds within one business day, though this does not apply to digital currencies. We observed that in some cases, the funds reach your account instantly. Still, minor delays may occur due to additional checks within Deriv's internal system. The withdrawal time also depends on your payment provider.

Remember, only verified users can withdraw funds to payment system accounts where the account holder's name matches the name on the trading account. You can always confirm these details with the customer support team.

Currencies

You can choose one of three primary currencies during the account setup process: USD, EUR, or GBP. Cryptocurrency accounts are also available, including Tether-TRC20, Bitcoin, Ethereum, Litecoin, Tether-ERC20, and USD Coin.

Do I have negative balance protection with this broker?

Depending on the type of trading account you open with the broker, Deriv clients can expect protection from negative balances. This feature means you won't be liable for trades whose total value exceeds the funds in your Deriv account.

Deriv offers all its clients protection from a negative balance to shield them from potential unfavorable trade changes that could result in the broker owing. The protection from negative balance considers your total obligations across all open trades rather than just a single trade.

Note:The negative balance protection does not apply if you open a prohibited trade or if a negative balance results from the trader violating the terms of the current user agreement at the time of this Deriv review.

Deriv fees & commissions

We found that the broker Deriv may charge inactivity fees. Therefore, we recommend starting trading immediately after opening an account. If you need help with your skills, begin with a free demo account. This account will allow traders to test their trading strategies without risking real money.

Non-trading fees

The non-trading fees Deriv charges include an inactivity fee of up to $25 if no trades occur in the account for 12 months. If you leave the account inactive, the system deducts this fee every six months.

Additionally, the broker may move your trading account to the archive if you have no trades on your Deriv MT5 account for 30 days. To restore it, contact customer support.

Spreads

Spreads represent the difference between a financial instrument's ask and bid prices. Essentially, they serve as the broker's commission for executing trades on the Forex market.

We analyzed the spreads on the Deriv Financial account at two key moments: during the opening of the Forex trading session in London (7:00 GMT) and right after the start of the session in the USA (13:00 GMT), when market activity was at its peak. The table below shows the spread values for the most popular assets during these times.

Demo account

A free demo account lets you learn how to use the Deriv binary options broker platform without financial risk. Each demo account provides $10,000 in virtual funds, fully available for trading. Suppose you are a novice trader and lose some of the virtual funds. You can always restore the balance for free by clicking the "Reset Balance" button in the trading terminal's control panel.

However, it is essential to remember that the primary goal of the demo account is not just to increase virtual funds, as beginner traders sometimes do, but to study technical analysis, work with technical indicators, and master capital management according to your risk appetite.

Trading platforms

Deriv offers its clients the most popular forex trading platform, MT5, along with many terminals developed in-house. You can access any of these platforms through the Trader's Hub.

The broker makes available to its clients seven trading platforms, each with its features and suitable for different types of trading:

 

1. Deriv Traderis a new trading terminal introduced in the company's rebranding.
2. Deriv Botis a platform for creating trading robots and algorithmic trading without the need for programming knowledge.
3. Smart Traderis an outdated trading terminal inherited from the company operating under the "Binary.com" brand.
4. Deriv GO is a mobile platform for trading synthetic instruments on Android and iOS devices.
5. Deriv MT5is the standard MetaTrader 5 terminal for trading currency pairs on the Forex market and CFD contracts.
6. Deriv cTraderis a platform for trading CFDs on synthetic indices and financial instruments. It allows users to copy trades from other traders.
7. Deriv Xis a modern, robust, user-friendly terminal explicitly designed for binary options and CFDs.

Comparison of Deriv's Platforms

Each trading platform Deriv offers has advantages and disadvantages. You must understand that each serves specific tasks. Therefore, the functionality of each platform varies significantly to meet the needs of different types of traders and their trading strategies.

Mobile app

We found that Deriv offers mobile apps for the Deriv GO, Deriv Bot, and Deriv MT5 platforms. You can install all these apps on both iOS and Android operating systems.

These mobile apps provide functions similar to the web terminal, offering great convenience for traders who work across multiple devices simultaneously. You can skip using these apps and perform technical analysis directly through your smartphone or another mobile device's browser.

Technical platform issues

Active development of Deriv software sometimes leads to malfunctions. Key drawbacks of Deriv platforms highlighted by traders:

• Delays in order execution: During high market volatility, you may experience slow execution of trades.
• Limited number of tools: A small number of advanced charting tools and technical indicators makes it difficult to analyze the market in detail.
• Technical issues:Sometimes, traders encounter connection problems, slow interface performance, and incorrect chart display on small screens of mobile devices.
• Slow customer support response:Some users report that support replies take longer, especially when they send inquiries in languages other than English.
• Insufficient account security:Traders note the lack of two-factor authentication.

These shortcomings can significantly affect your trading experience, so we recommend analyzing them thoroughly before choosing a specific platform.

Deriv affiliate program

Deriv offers several partnership programs to its clients: Deriv Prime, Affiliates and IBs, Payment Agents, and Deriv API.

What makes Deriv's affiliate program beneficial? First, you partner with a reliable broker with over 20 years of experience in the financial markets. Second, experienced affiliate managers are always ready to answer your questions and provide excellent promotional and educational materials. Third, all Deriv affiliate programs are free, with no fees or hidden charges.

Customer support

Suppose you encounter difficulties using Deriv's many trading platforms or withdrawal issues. In that case, we recommend contacting their customer support team.

Our research shows that Deriv's support operates 24/7, including weekends and holidays. Based on numerous client reviews across various online platforms, Deriv's customer support is reliable and trustworthy.

You can contact Deriv's customer support through several channels:

• Live chat
• Email
• Social media platforms like WhatsApp
• Visiting a local office in your country

Our tests revealed that the fastest way to get answers is via live chat or WhatsApp. These options work well for beginners and experienced traders, offering assistance on various topics – from setting up trading platforms to depositing and withdrawing funds. Email is a good alternative if your query requires no immediate response. You'll usually receive a reply within one to two business days.

Research & Education

Deriv does not provide training for beginner traders. The educational materials on the Deriv website include a blog featuring analytical content and articles. The broker does not offer individual or any other type of training, limiting its support to basic information in the "Help" section.

We found that using a demo account is the best way to learn how to use the broker's trading platforms. You can learn about the platform's capabilities and practice trading strategies without the risks. It's the ideal tool for understanding the basics of CFD, Forex, and options trading.

Is it easy to open a Deriv account?

Opening an account on the Deriv platform is quite simple. However, before you begin the process, we recommend double-checking that the broker operates in your country. Additionally, we remind you that only individuals at least 18 years old can open an account.

How to open a trading account

The registration process at Deriv is straightforward. All you need to do is click the "Try free demo" button. The platform will then require you to type in your current email address and confirm your agreement with its terms of use.

Next, we recommend you pass the identity verification procedure. To do this, you must provide customer support with scans of your passport or other identification documents and confirm your address (for example, with a bank statement).

After the broker's specialists carefully review your documents, Deriv will send you an email informing you of your account status. The email will confirm whether everything was successful or notify you about the rejection of the documents. After that, you can deposit funds into your trading account and start trading with Deriv.

How to trade on Deriv?

Executing trades on the Deriv platform is as simple as on other binary options brokers' platforms, and the process is straightforward. It follows a standard algorithm:

1. Choose an asset: The trader selects the asset they want to trade from the list provided by the platform.
2. Determine the direction:The trader predicts whether the asset's price will increase or decrease within the chosen time frame.
3. Set the expiration time:The trader chooses when the trade will automatically close.
4. Set the investment size:The trader sets the amount they are willing to invest in the trade.
5. Opening the trade:After confirming all parameters, the trade opens.
6. Waiting for the result: The trader waits for the option's expiration and sees the outcome of the trade.

Who should consider using Deriv?

As mentioned earlier in this review, Deriv offers its clients seven versatile platforms for trading binary options, CFDs, and other financial instruments. This assortment helps traders of all experience levels identify an option that suits their needs.

Your platform choice depends on your experience level, trading goals, and risk tolerance. Deriv offers beginners' demo accounts. Veteran traders will find various assets – from currency pairs and cryptocurrencies to synthetic indices – available for trading.

In addition, the platform provides various options and tools for technical analysis and the possibility of automated trading using Deriv Bot.

Pros and cons of Deriv

What New on Deriv in 2024?

In 2024, binary options broker Deriv continued to grow actively under the management of five companies registered in different parts of the world, further emphasizing the company's global presence in the financial markets.

Throughout 2024, Deriv achieved significant milestones. The broker won the "Broker of the Year" award at the Finance Magnates Awards ceremony. At the annual FX Trust Score Awards, it received the "Best Partner Programs" award for its commitment to supporting partners with personalized commissions, advanced marketing tools, exclusive platform access, personal managers, reports, and comprehensive real-time analytics.

The company introduced a new asset class in late November: "Tactical Indices." This innovative asset class will allow traders to automate complex strategies, making them accessible even to beginners.

Currently, "Tactical Indices" are available on the Deriv MT5, Deriv cTrader, and Deriv X platforms. The broker plans to expand new asset classes in early 2025, adding additional technical indicators, including MACD and Bollinger Bands, and new trading strategies.

Should you trade binary options on Deriv?

Despite its over 20-year history, Deriv remains a leading binary options broker. The wide variety of trading strategies available to its clients is made possible by the available expiration times and 17 types of options contracts. Beginners who still need to develop their strategy can start trading by copying the trades of successful traders on the Deriv cTrader platform.

Traders worldwide will truly appreciate Deriv's offerings, thanks to the ability to open accounts in one of the major global currencies: US dollars, euros, or British pounds. If you are looking for a reliable broker for binary options trading, consider Deriv.

FAQ

How long does it take to withdraw funds?

The withdrawal time at Deriv depends on the processing speed of the payment system you choose. Depending on the system's workload, it can range from one to three days.

Can I trade on Deriv from my country?

It depends on whether the broker operates in your region. The company's official website has a current list of countries where Deriv operates.

What is the minimum deposit on Deriv?

The minimum deposit is only $5, and the minimum trade amount is $1. It is incredibly convenient for beginner traders, as it doesn't require significant investment.

How does Deriv compare to other binary options brokers?

Compared to other brokers, Deriv offers several advantages:

• The ability to create and trade algorithmic strategies without programming skills.
• Deriv offers unique tools, including synthetic and tactical indices, multipliers (essentially margin vanilla options), and 17 types of options contracts, more than any other broker in the industry.
• Seven trading platforms, including a mobile app, copy trading terminals, and automated trading.
• Deriv offers the option to open an account in three fiat currencies and six cryptocurrencies.
• Regulation by six organizations.

All of this places Deriv at the forefront of binary options brokers.

Is Deriv a good or bad binary options broker?

Deriv is a regulated binary options broker with a good reputation. It offers user-friendly trading platforms and a wide range of trading assets, making it a solid choice for those seeking a reliable broker for binary options trading.

 

See also:

Best Binary Options Broker

Live chart for binary options

How to make money on binary options

What to do if the broker does not withdraw money