deriv.com briefly

DERIV was established in 1999 by the founding company Regent Market Group, which offered mainly binary options. It was later rebranded and DERIV is now a trademark of Deriv Investments (Europe) Limited. It is authorized and regulated by the Malta Financial Services Authority (MFSA). Customers can trade through a set of platforms that meet their trading needs, including the flagship MetaTrader 5 (MT5). However, most of them are used for option trading.

Regulation

When you turn to an online trading brokerage company, the first thing you need to check is whether and where it is regulated. Deriv is regulated by several entities including the Malta Financial Services Authority (MFSA) under license number IS/70156, the Labuan Financial Services Authority (Labuan FSA), the Vanuatu Financial Services Commission (VFSC), and the British Virgin Islands Financial Services Commission. The company has a temporary permission to offer certain services in the UK under reference number 700094. Client’s funds are fully segregated, held in secure financial institutions, DERIV claims.

Account Types

There is only one type of live account, so trading conditions are equal for all categories of traders. There is no minimum deposit requirement so you can start trading by depositing as much as you want. Retail clients are covered by Negative Balance Protection.

What Type of Broker the Company Is

The “Risk Disclosure” document shows that the company executes all the orders it receives from you as the counterparty to your trades. It acts as a principal and not as an agent on your behalf for the purpose of order execution. In addition, Deriv Investments (Europe) Limited may earn money out of your potential aggregate loss. This means that the company acts as a market maker, which involves a conflict of interest because when the company executes orders, it keeps the risk to itself.

The same document states that you may find it difficult or impossible to close a position at the intended price stipulated in your stop order during certain market conditions. In highly volatile trading conditions, a stop order will not necessarily limit your losses to the amounts you intended because market conditions may make it impossible to execute such orders. Therefore, your exit price is not certain. In short, a stop order is not a guarantee and is subject to slippage.

The European regulation ensures that the company has a negative balance protection policy, and therefore you cannot lose more than you have on your account. The “General Terms of Use” document shows that the company shall waive your negative balance by crediting your account if your account balance goes into a negative balance.

Fees

In addition to the usual fees such as spread, swap, etc., there is also an inactivity fee. The “General Terms of Use” document informs that if your account has not recorded any transactions for a period greater than twelve months, it will be considered a dormant account and the company will charge you a dormant fee of up to USD/EUR/AUD/GBP25.

Deposits and Withdrawals

The company supports payment methods that include bank wire, credit or debit cards, e-wallets, and cryptocurrencies. DERIV usually processes deposits and withdrawals within one business day. However, your bank or money transfer service may require additional time to process your request, the company warns.

The minimum deposit and withdrawal amount is USD5 using e-wallets, USD10 using credit/debit card and bank transfer.

Withdrawals will be sent back to the bank account /card from which you funded your account. All withdrawal requests are processed within the same business day or on the following business day. However, it may take up to 15 business days for funds to be on your card statement.

Trading Platforms

There are several platforms that you can use with DERIVE. Most of them are only for options trading. The only platform designed to trade CFDs is the world’s leading MetaTrader 5 (MT5) terminal, which here is called DMT5. Deriv MT5 (DMT5) gives you access to multiple asset classes — forex, shares, indices, commodities, cryptocurrencies, and synthetic indices — on a single platform. You get faster processing times, the ability to hedge positions, advanced pending order functionality, advanced tools, and indicators. MetaTrader platform is available as a desktop version for Windows and MAC machines, and as a mobile app for Android and iOS devices.

Assets

Forex – More than 50 popular major, minor, and exotic currency pairs can be traded, including currency indices, which here are called Smart FX.

Indices – You can trade 11 of the most popular major and minor indices globally, such as DJIA, US500, FTSE100, IBEX35 etc.

Commodities – 13 of the most traded commodities are available such as Gold, Silver, Oil and Natural Gas. Spreads are variable and trading is commission free.

Shares – CFDs on 47 US shares can be traded.

Cryptocurrencies – 15 of most traded cryptocurrencies such as Bitcoin, Ripple, Ethereum etc. are available. The leverage is 1:2.

Summary

Deriv Investments (Europe) Limited is a European brokerage company, which has a MFSA regulation. You can trade currency pairs, cryptocurrencies, commodities, indices and shares through the MT5 terminal. You can deposit by bank wire, debit/credit cards, and e-wallets. All retail clients are covered by negative balance protection. You can start trading by deposit as low as you would like. The company usually acts as a market maker, and a conflict of interest exists.

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