You need to have a good knowledge of the Forex market. You also need to be able to use your skills to your advantage. According to the deriv broker review, finding a reliable service provider who takes financial safety seriously is also important.
Forex brokerage firms are plentiful. Many brokers are offering flashy terms and conditions. However, it is only sometimes possible to find a reliable broker.
This review of Deriv Forex broker was created to help you make an informed decision about your service provider. This review will help you determine if you can trust the broker or if it is a scam.
Background and regulation of Deriv
It would help if you first looked at any broker’s background and regulatory actions. A trusted broker will be open about its history and will not try to conceal any details.
We got the impression that Deriv might be the former. Although it provides a short timeline explaining how Deriv was founded in 1999, we are still bombarded daily with bold claims about how Forex trading can be reimagined and made accessible to all. These phrases are always suspicious and should be avoided.
Deriv’s lack of regulation only makes our suspicions worse. Although it claims to hold four licenses from four different regulators, this would have easily proved the broker’s legitimacy. However, when we dug deeper, we found the exact opposite.
Before we evaluate the credibility of these licenses, let’s list all we found in our Deriv review.
- Malta Financial Services Authority (MFSA).
- Vanuatu Financial Services Commission (VFSC)
- British Virgin Islands Financial Services Commission (BFSC)
- Labuan Financial Services Authority – LFSA
As you can see, 35% of these licenses are from third-world nations, and there are better places to obtain a Forex license than Malta. This means that regulators will need to be able to properly manage the task of monitoring broker activities and ensuring high quality financial services. This is especially true when we are talking about the global scale.
Deriv is a brokerage that strictly regulates. We are not convinced.
Deriv provides software and website support.
Let’s now talk about Deriv’s website and how the broker manages it.
We discovered that Deriv.com is a broker who prefers to focus on the visual aspects of its website but neglects the information. This means that Deriv.com’s website is quite good with visual effects and decorations, but it won’t be easy to find information about accounts and commission rates.
Despite all this, we were able to discover that Deriv Forex broker offers three live accounts to its clients:
- Financial (Standard)
- Financial STP
- Synthetic
We could not locate the exact details of these accounts, including specific minimum deposit requirements, leverage rate, spread charges, and other relevant information. We know that 5 USD is the minimum deposit required to trade with Deriv.
Deriv offers a demo trading account as well as live accounts. Although it is a valuable addition to the platform, a demo trading account is not a worthy achievement for Forex brokers today. Virtually every broker has one, and most don’t fuss too much about it.
Trading platforms are a serious matter. Deriv offers a very sophisticated software support website. There are four options:
- DMT5 (MetaTrader 5)
- trader
- DBot
- SmartTrader
Although we have yet to determine the exact nature of these proprietary platforms, MetaTrader 5 can execute any order you place. Also, checkout the bitcoin price prediction 2025.
What are the trading terms and conditions of Derivs?
Let’s not forget about the details of how you can trade with Deriv, and what terms and condition apply.
We found that you can trade over 100 symbols, as we reviewed in our Deriv broker review. These are broken down into the following categories.
- Forex
- Synthetic indices
- Stock indices
- Commodities
- Binary options
Let’s start with this: While it’s wonderful to have a wide product selection, we are concerned about synthetic indices or binary options. Here’s why.
Each of these instruments is extremely dangerous because they have different risks. The algorithm that generates random price movements in a simulated marketplace is the sole basis of synthetic indices. Brokers often alter this algorithm to make the results more favorable for them.
Binary options are binary options. The outcomes can either be all-win, all-lose. Options trading can bring you higher profits, but it can also lead to more devastating losses. This arrangement can often be a win-win situation for your broker.