ScamsDeriv review

Is Deriv a legit forex broker? Should you be concerned about investing your money with this firm? Does the broker honor its clients’ withdrawals, or are there issues of delayed funds? For answers to these questions and more, keep it here for an in-depth review on Deriv.

Have you lost money investing with Deriv? If yes, book a free consultation with us. Our experienced experts will help you recover your lost funds.

Now, let’s get the lowdown on Deriv. Is the forex broker all that it claims to be?

Deriv Review: An Honest Look at Deriv

Established in1999 as Regent Markets Group, the brokerage firm’s deepest desire was to make online trading accessible to all. Boasting 20+ years of innovation and customer-focused service, the broker has undergone various transitions, the latest being the rebrand from Binary.com to Deriv.

While Deriv has won many awards for its quality service, to determine whether this broker is the real deal, we need to take an honest and deeper look at its activities.

Is Deriv a Legitimate Trading Company?

To become successful in the forex market, you need excellent trading skills. But more than that, you need to work with a reliable, trustworthy, and reputable forex broker that will safeguard your investment.

To find out the real truth about Deriv, we’ll start by establishing who regulates this broker and whether they are reputable financial organizations. We’ll also look into the firm’s service offering and mode of operations. Ultimately, we’ll come up with a verdict as to whether this firm is trustworthy.

Deriv: A Brief Background

Deriv account typesDeriv is a trusted online trading platform that makes it easy for new traders to begin trading by providing simple, intuitive, and easy-to-navigate tools. It also offers market news, analysis, articles, and video tutorials, all aimed at helping you get better at trading.

Deriv’s Service Offering

Any genuine broker is open and transparent about its activities. However, a scammy broker will make bold claims to show how great it is but hide a lot by providing scanty details on its operations.

Deriv’s website, while visually appealing, offers limited information on vital details like accounts and commission rates. Its aim is to entice you enough to sign up, deposit funds, and start trading.

Deriv offers its clients three live accounts: Financial (standard), Financial STP, and Synthetic. But the exact details relating to minimum deposit amounts, spread charges, and leverage rates on the live accounts are missing.

Trading Platforms

Deriv platform features a demo trading account that allows traders to simulate real trading. You also have a choice of four unique trading platforms:

  • DTrader
  • DBot
  • SmartTrader
  • DMT5 (MetaTrader 5)

And a diverse product base; there are 100+ different trading options divided into the below categories:

  • Forex
  • Commodities
  • Binary options
  • Stock indices
  • Synthetic indices

One thing that gives us pause is trading with synthetic indices and binary options since these instruments can be extremely risky. For one, synthetic indices depend solely on an algorithm that creates random price movements within a simulated market. Unfortunately, brokers tend to tweak the algorithm to deliver outcomes favorable to them.

With binary options, you can generate higher profits, but the losses can be devastating. Again, more often than not, it’s the brokers who emerge winners here.

Who Regulates Deriv?

Most genuine brokers are under licensing from official regulatory bodies like CySEC in the EU, UK’s FCA, and ASIC in Australia. Deriv’s regulation is curious as it claims to own licenses from four different regulators, namely:

  • Malta Financial Services Authority (MFSA)
  • British Virgin Islands Financial Services Commission (BFSC)
  • Vanuatu Financial Services Commission (VFSC)
  • Labuan Financial Services Authority (LFSA)

While this would prove legitimacy to a newbie investor, a keener look shows that none of the above regulators is reputable. Most come from 3rd world countries, and Malta is questionable as a location from which to get a forex license. Deriv also operates in St. Vincent and the Grenadines, a grey location in financial institutions’ regulation.

What this boils down to is that these regulators are unable to monitor Deriv’s activities and ensure quality financial service across its global operations. Your funds are also not protected under a client compensation fund.

Another thing to note is that Deriv’s services are not available in the USA, Hong Kong, and Canada.

Suspicious Leverage

Most Tier-1 regulators, including the FCA and CySEC, protect traders from high leverage rates by locking their subjects at 1:30. This low leverage ratio helps traders to avoid damaging outcomes.

However, with Deriv, synthetic indices offer maximum leverage as high as 1:1000. While this enables you to boost your position, hence amplifying the potential gains, your risk escalates. You could suffer massive losses.

The Right to Charge Unspecified Fees

Weird feesAccording to the Terms and Conditions, it is within Deriv’s right to charge deposit or withdrawal fees at their discretion. The broker can also reverse any of the trades you make. This leaves the investor at the mercy of the broker.

Deriv: Customer Reviews

When you want to know whether a broker has a positive reputation, head online and check customer reviews. Forex Peace Army, a trusted online broker review platform, contains several negative reviews about Deriv. Some customers talk of price manipulation, while others cite challenges with funds withdrawals. The negative reviews include Binary.com too.

Deriv Review: Final Verdict

Deriv is not convincing as a trustworthy Forex broker. Instead, it’s a well-oiled scam machine that preys on unsuspecting investors. Granted, it seems to tick all the boxes as a genuine broker:

  • It has a global presence and a long trading history
  • It keeps investors’ funds in segregated accounts within secure financial institutions
  • It has won multiple awards for its reliable platform and customer-focused trading environment
  • New investors can practice trading using unlimited virtual funds before committing real money
  • Traders use MetaTrader 5, a well-known online trading platform

But the following red flags raise eyebrows and point to the undeniable conclusion that Deriv is an unregulated scam:

  • Inadequate regulation
  • Suspicious leverage
  • Negative customer reviews
  • Lack of sufficient information on trading accounts

Have you traded CFDs, indices, commodities, synthetic indices, or forex with Deriv and lost money in the process? Are you having a hard time getting your money back?

Wealth Recovery Expert (WRE) specializes in helping online traders who’ve lost money to fraudulent trading platforms. Schedule a free consultation with us and take the first step to recover your funds.