Many newbies in trading usually ask the Question ” What is Deriv? Deriv is one of the names you will frequently come across. Deriv is a popular online broker offering various financial instruments, including forex, synthetic indices, commodities, and cryptocurrencies. It is designed to provide both beginner and experienced traders with an intuitive and seamless trading experience. 

As you read this guide, we will provide you with every information to walk you through everything you need to know about Deriv, from its features and account types to the best strategies for trading profitably on the platform.

What Is Deriv?

Deriv is an online trading platform that provides users with access to multiple markets and assets. The company evolved from Binary.com, which had been in operation for over two decades before rebranding as Deriv in 2020. Since then, Deriv has continued to innovate, offering advanced tools and a wide range of trading opportunities tailored to different trader levels.

The platform is regulated by multiple financial authorities, including the Malta Financial Services Authority (MFSA), the Vanuatu Financial Services Commission (VFSC), and the Labuan Financial Services Authority (LFSA). This ensures compliance with financial regulations, giving traders a sense of security.

How to Get Started on Deriv

1. Create an Account

Getting started with Deriv is simple and fast. You need to sign up using an email address and set up a secure password. Once you verify your email, you can access your trading dashboard.

2. Choose Your Account Type

Deriv offers different account types depending on your trading preferences:

• Demo Account: Perfect for beginners to practice trading with virtual funds before risking real money.
• Standard Account: A real-money account with flexible trading conditions.
• Financial Account: Designed for forex trading and other financial instruments.
• Synthetic Account: Specially created for synthetic indices trading, which are unique to Deriv.

3. Deposit Funds

Deriv supports multiple payment options, including credit/debit cards, e-wallets, and cryptocurrencies. The minimum deposit varies depending on the method you choose, but in most cases, you can start with as little as $10.

4. Start Trading

Once your account is set up and funded, you can start trading using the various platforms offered by Deriv:

• DTrader: A simple and flexible trading interface.
• DBot: A bot-based trading system that allows users to automate their trades.
• Deriv MT5 (DMT5): A powerful MetaTrader 5 platform designed for advanced traders.
• Deriv X: A customizable trading platform with advanced charting tools.

Best Trading Strategies on Deriv

If you want to succeed on Deriv, you need to implement the right trading strategies. Here are some of the best strategies used by traders on the platform:

1. Trend Following Strategy

This strategy involves analyzing market trends and trading in the direction of the prevailing trend. If the market is in an uptrend, traders look for buying opportunities. Conversely, in a downtrend, they seek selling opportunities.

2. Support and Resistance Strategy

Support and resistance levels are crucial in trading. When the price reaches a support level, it is expected to bounce back up. Similarly, when the price hits a resistance level, it is likely to drop. Traders use these levels to place their trades effectively.

3. Scalping Strategy

Scalping involves making multiple small trades throughout the day to capture quick price movements. This strategy is best suited for short-term traders looking for small but consistent profits.

4. Breakout Trading Strategy

This strategy focuses on trading assets that break through significant price levels. Traders enter positions when an asset moves beyond a key resistance or support level with increased volume.

5. Risk Management Strategy

No matter the strategy you use, risk management is critical to long-term success. Implementing proper risk management techniques, such as setting stop-loss and take-profit levels, ensures you protect your capital from excessive losses.

Pros and Cons of Trading on Deriv

Pros:

1. User-Friendly Interface: The platform is easy to navigate, making it suitable for beginners.
2. Wide Range of Assets: Offers forex, synthetic indices, commodities, and crypto trading.
3. Multiple Trading Platforms: Options like DTrader, DBot,Deriv X, and DMT5 cater to different trading styles.
4. Low Minimum Deposit: Allows traders to start with as little as $10.
5. Regulated Broker: Licensed by reputable financial authorities, ensuring security.
6. Demo Account: New traders can practice without risking real money.

Cons:

1. Limited Regulation: Though regulated, Deriv is not licensed by top-tier regulators like the FCA or SEC.
2. Limited Asset Choices: Compared to other brokers, Deriv does not offer as many stocks and indices.
3. No MetaTrader 4 (MT4): Some traders prefer MT4, which is not available on Deriv.
4. Withdrawal Processing Time: Depending on the payment method, withdrawals may take longer than expected.

Conclusion

In conclusion, Deriv is an excellent trading platform for both beginners and experienced traders. With a user-friendly interface, multiple account types, and various trading tools, it provides a seamless trading experience. Whether you are interested in forex, synthetic indices, or cryptocurrencies, Deriv offers opportunities to trade with confidence. However, as with any trading platform, it is crucial to practice proper risk management and continuously improve your trading skills to achieve success.

Frequently Asked Questions (FAQs)

Is Deriv a legit trading platform?

• Yes, Deriv is a legitimate online trading broker regulated by multiple financial authorities, including the MFSA, VFSC, and LFSA.

What is the minimum deposit for Deriv?

• The minimum deposit depends on your chosen payment method, but it typically starts from $10.

Can I trade cryptocurrencies on Deriv?

• Yes, Deriv offers cryptocurrency trading alongside forex, commodities, and synthetic indices.

Does Deriv have a demo account?

• Yes, Deriv provides a free demo account with virtual funds, allowing traders to practice before using real money.

How long does it take to withdraw from Deriv?

• Withdrawal times vary depending on the payment method. E-wallets are typically processed within 24 hours, while bank transfers may take several business days.

Can beginners trade on Deriv?

• Absolutely! Deriv is designed for all trader levels, and its demo account and educational resources make it suitable for beginners.