Binary.com / Deriv.com: A Comprehensive Broker Review for Binary Options Traders
1. Executive Summary
Deriv.com represents the evolution of Binary.com, a brokerage entity with a significant history in the online trading sphere, particularly recognized as a pioneer in making binary options accessible to retail traders since 1999/2000.1 The rebranding to Deriv.com in 2020 signaled a strategic expansion beyond its original focus, aiming to encompass a broader suite of derivative products while enhancing user experience and platform capabilities.1 Deriv.com now offers a diverse range of financial instruments, including CFDs (Contracts for Difference), forex, stocks, indices, commodities, cryptocurrencies, and unique proprietary offerings such as Multipliers, Accumulators, and 24/7 Synthetic Indices.5 Binary options continue to be offered under the name “Digital Options” on specific platforms within the Deriv ecosystem.6
The broker operates globally through a complex structure of subsidiary companies regulated by various authorities, including the Malta Financial Services Authority (MFSA) for European operations, and several offshore regulators such as the Labuan Financial Services Authority (LFSA), British Virgin Islands Financial Services Commission (BVI FSC), Vanuatu Financial Services Commission (VFSC), and the Financial Services Commission of Mauritius.5 This multi-jurisdictional approach allows Deriv to tailor its offerings based on regional regulations but also means clients outside the EU may fall under less stringent offshore oversight, potentially impacting the level of investor protection. This structure appears designed to maintain an EU presence while utilizing offshore licenses to offer products or leverage levels restricted in more tightly regulated markets.5
Crucially, binary options (including Deriv’s “Digital Options”) are banned for retail clients in major regulated markets, including the European Union, the United Kingdom, Australia, Canada, and the United States.12 Therefore, Deriv’s binary options services are inaccessible to retail traders in these key regions. The company is also a member of the Financial Commission, an external dispute resolution body, which it promotes as a client protection feature offering potential compensation.10 However, the legitimacy of this body has been questioned by the Canadian Securities Administrators (CSA), creating ambiguity regarding the actual value of this membership.18
Deriv.com’s reputation presents a dichotomy. The company actively manages its online image, highlighting a high volume of positive Trustpilot reviews (often solicited) and industry awards.5 Conversely, significant user complaints persist across various platforms, including Deriv’s own community forum, primarily concerning difficulties with fund withdrawals, account blocking, platform stability, and alleged manipulation, particularly of its proprietary Synthetic Indices.20
Trading binary options carries inherent high risks, often compared to gambling, with a majority of retail clients historically losing money.12 Specific concerns regarding Deriv center on the transparency and reliability of its proprietary Synthetic Indices and the documented friction points in its withdrawal processes.
In conclusion, Deriv.com is a long-established broker offering a uniquely broad range of trading products, including binary/digital options, accessible through multiple platforms with low entry requirements. However, its binary options are unavailable in major regulated markets. Prospective clients must weigh the platform’s versatility and history against the significant risks associated with binary options, the complexities of its offshore-heavy regulatory framework, the conflicting information regarding its dispute resolution mechanism, and the persistent user complaints about fund accessibility and platform integrity. Extreme caution and thorough due diligence are advised, particularly for traders prioritizing robust regulatory oversight and undisputed ease of withdrawals.
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2. From Pioneer to Present: The Binary.com / Deriv.com Journey
Understanding Deriv.com requires acknowledging its deep roots as Binary.com, a significant player that shaped the early landscape of online retail derivatives trading.
2.1 Founding and Early History (Binary.com)
The company’s origins trace back to 1999 with the establishment of Regent Markets Group by founder Jean-Yves Sireau.1 In 2000, the group launched Betonmarkets.com, which was subsequently rebranded to Binary.com.1 This platform distinguished itself early on by being one of the very first to offer binary options trading to a retail audience.2 Prior to this, such instruments were largely confined to the domain of large banks and hedge funds.2
The founding mission, as articulated by the company, was to democratize online trading, specifically through a fixed-odds system that allowed ordinary investors to participate with small trade sizes and, crucially, limited risk – the maximum potential loss being capped at the initial stake.1 This accessibility and defined risk profile were key differentiators that fueled its growth.
Over two decades, Binary.com built a reputation and a substantial client base, claiming over 1 million customers at the time of its transition.17 Its longevity, now exceeding 25 years including its time as Deriv.com, stands out in an industry where brokers often have much shorter lifespans.2 It is important to note that Binary.com / Deriv.com is entirely separate and distinct from Banc De Binary, an unrelated Israeli firm known for regulatory issues and eventual closure.32
2.2 The 2020 Rebranding to Deriv.com
In May 2020, Binary.com officially announced its rebranding to Deriv.com.3 This transition was presented as a natural evolution marking the company’s entry into its third decade of operations.3 The stated motivations centered on renewing the commitment to making online trading accessible, enhancing the user experience, and introducing a suite of new products and platforms designed for both novice and experienced traders.1 These included the DTrader platform, the DBot automated trading tool, integration with Deriv MT5 (DMT5), the introduction of Multiplier options, and features like the P2P Cashier.3
The choice of the name “Deriv” was deliberate, signifying a broader focus on the full spectrum of derivatives, moving beyond the specific connotations of “binary options” which had faced increasing regulatory scrutiny and negative press globally around that time.1 The company indicated that the Binary.com name perfectly reflected its offerings years ago but no longer captured the expanded range of products and services.1
This rebranding represented more than a cosmetic change; it was a strategic repositioning. By shifting the brand identity towards the more general (and arguably less controversial) term “derivatives,” the company could leverage its established history and technology while mitigating the negative associations increasingly attached to the “binary options” label. This allowed Deriv.com to appeal to a wider audience interested in CFDs, forex, and other instruments, positioning itself as a comprehensive multi-asset broker.1
While the Binary.com brand was set to be phased out, the transition was managed to ensure continuity for existing clients.1 Key elements of the Binary.com ecosystem were retained, such as the popular SmartTrader platform, which remained available on Deriv.com.3 Furthermore, recognizing the importance of automated trading for its user base, Deriv later introduced clear migration paths for users to transfer their strategies from the legacy Binary Bot to the new Deriv Bot platform, ensuring minimal disruption.36 This approach facilitated client retention by building upon the “best lessons from the past 20 years” 1, evolving the brand rather than discarding its established foundation.
3. Regulatory Compliance and Client Safety Analysis
A critical aspect of evaluating any online broker is its regulatory standing and the measures in place to protect client funds and ensure fair practices. Deriv.com operates under a complex web of licenses and memberships, which requires careful examination.
3.1 Global Licensing Footprint
Deriv.com’s operations are conducted through several subsidiary companies, each registered and licensed in different jurisdictions. This structure is overseen by the holding company, Deriv.com Limited, registered in Guernsey.5 The key licensed operating entities include 5:
- Deriv Investments (Europe) Limited: Regulated by the Malta Financial Services Authority (MFSA) as a Category 3 Investment Services provider. This entity primarily serves clients within the European Union.
- Deriv (FX) Ltd: Licensed by the Labuan Financial Services Authority (LFSA) in Malaysia.
- Deriv (BVI) Ltd: Licensed by the British Virgin Islands Financial Services Commission (BVI FSC).
- Deriv (V) Ltd: Licensed by the Vanuatu Financial Services Commission (VFSC).
- Deriv (Mauritius) Ltd: Licensed by the Financial Services Commission (FSC) in Mauritius.
Additionally, Deriv (SVG) LLC is registered in St Vincent and the Grenadines.5 It is crucial to note that registration in SVG does not equate to regulatory oversight by a financial authority in the same way as the licenses held in Malta, Labuan, BVI, Vanuatu, or Mauritius.
This multi-jurisdictional framework implies that the specific regulatory regime and associated protections applicable to a client depend heavily on their country of residence and the particular Deriv entity they contract with.5 Clients within the EU are likely onboarded under the MFSA-regulated entity, benefiting from EU-standard protections (like MiFID II), albeit with product restrictions (e.g., no binary options for retail). Clients in other regions may be served by entities regulated in offshore jurisdictions (BVI, Vanuatu, SVG, Labuan, Mauritius).
The use of multiple offshore licenses alongside an EU license points towards a potential strategy of regulatory arbitrage. While the MFSA license provides legitimacy for EU operations, the offshore licenses enable Deriv to offer products (like certain binary options variants or high leverage on CFDs) and trading conditions to clients outside the EU that would be prohibited under stricter Tier-1 regulatory regimes.5 This allows Deriv to attract a global clientele seeking features unavailable in heavily regulated markets, but it comes at the cost of potentially lower regulatory safeguards for clients onboarded through these offshore entities.
3.2 The Role of the Financial Commission
Deriv.com and its predecessor Binary.com became approved members of the Financial Commission in June 2020.10 The Financial Commission presents itself as an independent, external dispute resolution (EDR) organization specializing in the financial services industry, particularly forex, CFDs, and cryptocurrency markets.17 Deriv promotes this membership as a benefit to clients, highlighting the Commission’s role in providing unbiased third-party mediation for disputes that cannot be resolved directly with the broker.11 Furthermore, membership status (Deriv holds A-category) purportedly provides clients access to a compensation fund protecting claims up to €20,000 per client, offering a potentially faster and simpler resolution process than traditional legal channels.10
However, a significant point of contention arises from the Canadian Securities Administrators (CSA), the umbrella organization for Canada’s provincial and territorial securities regulators. In a public warning regarding fraudulent crypto platforms, the CSA explicitly listed the Financial Commission (Finacom PLC Ltd) among entities described as “fake regulatory / dispute resolution organizations” used by platforms to appear legitimate.18 The CSA noted that while such organizations’ websites might appear credible initially, they lack genuine authority, and any entity claiming approval or membership is likely fraudulent.18
This direct contradiction between Deriv’s promotion of its Financial Commission membership as a trust signal and a major regulatory body’s warning against the organization creates considerable uncertainty for traders. It casts doubt on the actual reliability and legitimacy of the dispute resolution process and the €20,000 compensation fund offered through the Financial Commission, undermining its value as an indicator of broker trustworthiness. Potential clients are left to grapple with conflicting information from the broker and official regulators regarding this specific aspect of client protection.
3.3 Navigating Restrictions: Binary Options Bans and Limited Access
Despite Deriv’s origins in binary options, regulatory actions worldwide have severely restricted the availability of these products to retail clients. It is imperative for potential users to understand these limitations:
- European Union/European Economic Area (EU/EEA): The European Securities and Markets Authority (ESMA) implemented a ban on the marketing, distribution, and sale of binary options to retail clients.12 While Deriv Investments (Europe) Limited holds an MFSA license, this ban prevents it from offering binary/digital options to retail traders within the EU.
- United Kingdom (UK): The Financial Conduct Authority (FCA) has also banned binary options for retail clients.12 Following Brexit, Deriv Investments (Europe) Ltd’s ability to operate in the UK under its EU passport ended, and its temporary permission status was ultimately cancelled.13 Deriv explicitly closed gaming/binary options accounts for UK clients in late 2021.39 Deriv is not currently regulated by the FCA.11
- Australia: The Australian Securities & Investments Commission (ASIC) banned the issue and distribution of binary options to retail clients effective May 2021, citing significant client detriment (with reviews finding 74-80% of clients lost money).14 This ban has been extended until October 2031.14
- Canada: The CSA prohibits the advertising, offering, selling, or trading of binary options with a term to maturity of less than 30 days to any individual.15 Furthermore, the CSA states that no business is currently registered or authorized to market or sell any binary options in Canada.15 Deriv is not listed among platforms registered with the CSA or those that have filed pre-registration undertakings.44 While Deriv’s API documentation might list country codes 45, offering binary options to Canadian retail clients would contravene CSA regulations.
- United States (USA): US regulations require binary options to be traded on regulated exchanges (Designated Contract Markets – DCMs).46 Off-exchange brokers like Deriv, operating in an Over-The-Counter (OTC) manner, are effectively prohibited from soliciting or accepting US clients for binary options trading.28
Other jurisdictions like Hong Kong and Israel have also been mentioned as restricted territories for Binary.com/Deriv.28 Prospective users must verify that Deriv’s services, particularly binary/digital options, are legally permissible in their specific country of residence.
3.4 Client Fund Security Protocols
Deriv asserts that it prioritizes the safety of client funds. The company states that client money is segregated from the company’s operational funds and held securely in reputable financial institutions.5 This segregation is intended to ensure that client funds are protected and returnable even in the unlikely event of Deriv’s insolvency.31
However, the available information lacks specific details regarding which financial institutions are used as custodians or whether the segregation process is independently audited. This absence of verifiable detail creates a transparency gap, particularly significant given that many clients may be onboarded through entities regulated in offshore jurisdictions (BVI, Vanuatu, SVG, Labuan, Mauritius). Oversight and requirements for fund segregation and auditing in these jurisdictions can sometimes be less rigorous compared to Tier-1 regulatory environments like the EU or UK.
Furthermore, the availability and extent of investor compensation schemes vary depending on the specific Deriv entity and its regulator. While the MFSA provides a level of protection under EU schemes for clients of Deriv Investments (Europe) Ltd, the protections offered under offshore licenses may be limited or non-existent. The compensation offered via the Financial Commission is subject to the previously discussed concerns regarding its legitimacy.18 Therefore, the actual level of fund safety and recourse available to clients differs significantly based on their location and the specific Deriv entity they are dealing with.
Table 1: Deriv.com Regulatory Status Summary
Jurisdiction | Regulator | Deriv Entity | License Status | Key Service Restrictions (Retail Binary Options) | Compensation Scheme Availability |
EU (Malta) | MFSA | Deriv Investments (Europe) Limited | Licensed (Investment Services Act) 5 | Banned 12 | Yes (Under EU/Maltese schemes) |
Labuan (Malaysia) | LFSA | Deriv (FX) Ltd | Licensed 5 | Availability depends on local regulations | Limited / Check LFSA rules |
British Virgin Islands | BVI FSC | Deriv (BVI) Ltd | Licensed 5 | Availability depends on local regulations | Limited / Check BVI FSC rules |
Vanuatu | VFSC | Deriv (V) Ltd | Licensed 5 | Availability depends on local regulations | Limited / Check VFSC rules |
Mauritius | FSC Mauritius | Deriv (Mauritius) Ltd | Licensed (Investment Dealer) 5 | Availability depends on local regulations | Limited / Check FSC Mauritius rules |
St Vincent & Grenadines | None (Registered Agent Only) | Deriv (SVG) LLC | Registered (Not Regulated) 5 | Availability depends on local regulations | None via local regulation |
United Kingdom | FCA | Deriv Investments (Europe) Limited | No Longer Authorised (Passport Cancelled) 13 | Banned 12 | No (FSCS unlikely post-authorisation) 13 |
Australia | ASIC | N/A (Services likely via offshore) | Not Locally Licensed for Retail Binary Options | Banned 14 | No (Not under ASIC protection for these products) |
Canada | CSA (Provincial Regulators) | N/A (Services likely via offshore) | Not Registered/Authorised 16 | Banned (<30 days), No firms authorised 15 | No (Not under Canadian regulatory protection) |
USA | CFTC / SEC | N/A (Services likely via offshore) | Not Registered/Authorised for OTC Retail 46 | Effectively Banned (Must be exchange-traded) 46 | No (Not under US regulatory protection for these products) |
Other (via FinComm) | Financial Commission (EDR Body) | Deriv.com / Binary.com | Member (A-Category) 10 | N/A | Claimed up to €20k (Legitimacy Questioned by CSA 18) |
Note: This table summarizes the regulatory landscape based on available information. Specific product availability and applicable regulations depend on the client’s country of residence and the Deriv entity they contract with.
4. Trading Ecosystem: Platforms and Products
Deriv.com provides traders with a notably extensive suite of trading platforms and financial products, catering to a wide range of trading styles and preferences, extending far beyond its binary options roots.
4.1 Overview of Deriv’s Trading Platform Suite
The broker offers multiple distinct platforms, accessible through a central ‘Trader’s Hub’ upon login.8 These platforms include 3:
- Deriv MT5 (DMT5): Integration with the globally popular MetaTrader 5 platform, offering CFDs on forex, stocks, indices, commodities, cryptocurrencies, and Deriv’s Synthetic Indices. It comes in Standard, Financial, and Swap-free account variants.5
- Deriv Trader: A web-based platform primarily focused on Deriv’s unique offerings like Digital Options, Multipliers, and Accumulators.5
- Deriv X: A customizable CFD trading platform developed with Devexperts (based on DXtrade), offering CFDs on forex, commodities, cryptocurrencies, and Synthetic Indices.5 Features TradingView charts.5
- Deriv cTrader: Another CFD platform known for its depth of market analysis tools and order capabilities, offering forex, stocks, indices, commodities, crypto, ETFs, and derived indices. It also supports copy trading.5
- Deriv Bot: A web-based platform allowing users to build and run automated trading strategies for digital options using a visual, drag-and-drop interface without needing coding skills.5
- SmartTrader: The popular legacy platform from the Binary.com era, continuing to be available on Deriv.com, primarily for options trading.3
- Deriv GO: A mobile application providing access to Multipliers and Accumulator Options on the go.7
4.2 Deep Dive: Binary Options (“Digital Options”) Trading
Despite the global regulatory pressure and the rebranding away from the “Binary.com” name, the core binary options product remains available under the moniker “Digital Options” in permitted jurisdictions.
- Platforms: Trading of Digital Options is primarily facilitated through Deriv Trader, the legacy SmartTrader, and the automated Deriv Bot.6 The older Binary Bot platform is being retired, with users encouraged to migrate strategies to Deriv Bot.36
- Contract Types: Deriv offers a variety of Digital Option contracts, allowing traders to speculate on different market outcomes 6:
- Ups & Downs (Rise/Fall): The classic binary option; predicting if the exit price will be strictly higher or lower than the entry price.
- Highs & Lows (Higher/Lower, Touch/No Touch): Predicting if the price will finish higher/lower than a predetermined price barrier, or if the price will touch or not touch a price barrier during the contract period.
- Digits (Matches/Differs, Even/Odd, Over/Under): Predicting the last digit of the asset’s price tick at expiration (e.g., predicting if it will match/differ from a chosen digit, be even/odd, or over/under a chosen digit). These are typically available on Synthetic Indices.
- Tradable Assets: Digital Options can be traded on a range of underlying assets, including Forex currency pairs, Stock Indices, Commodities, and Deriv’s proprietary Derived/Synthetic Indices.2
- Contract Parameters: Key characteristics of Deriv’s Digital Options include a very low minimum stake (starting from $0.35 USD), highly flexible contract durations ranging from mere seconds up to 365 days, and the defining feature of a fixed potential payout and predefined risk (loss is capped at the initial stake amount) known before entering the trade.5
- Automation: Deriv Bot provides a significant tool for options traders wanting automation. It uses a visual builder with drag-and-drop blocks, allowing users to construct trading algorithms based on technical indicators or predefined logic without writing any code. It offers pre-built strategies and allows importing/exporting strategies (including those from the old Binary Bot).3
4.3 Beyond Binaries: CFDs, Multipliers, and Other Instruments
Deriv’s product suite extends significantly beyond traditional binary options:
- CFDs: Offered on Deriv MT5, Deriv X, and Deriv cTrader platforms. These allow traders to speculate on price movements (up or down) of underlying assets without owning them. Available assets include Forex, Stocks, Stock Indices, Commodities, Cryptocurrencies, ETFs, and Synthetic Indices.2 CFDs involve leverage, which magnifies both potential profits and potential losses, with risk not necessarily capped at the initial margin.8
- Multipliers: A hybrid product offered on Deriv Trader and Deriv GO. These aim to combine the potential upside of leveraged trading (like CFDs) with the defined, limited risk of options (loss capped at the initial stake).4 Deriv advertises potential profit multiplication up to 2,000x if the market moves favorably, though the mechanics involve managing risk through features like stop loss or deal cancellation.6
- Accumulators: Another unique option type (available on Deriv Trader, Deriv GO) where potential profits grow with consecutive price ticks that stay within a predefined range, compounding up to a specified growth rate (e.g., 5% per tick).6 Risk management features like take profit are available.8
- Other Options: Deriv also lists Vanilla Options (traditional options with fixed expiry) and Turbo Options (requiring price to stay within barriers) as part of its suite.6
This extensive variety of platforms and unique product types (Digital Options, Multipliers, Accumulators, Synthetics) alongside standard CFDs is a hallmark of Deriv’s offering.5 While this provides traders with abundant choices, it also introduces a layer of complexity. Understanding the distinct mechanics, risk profiles (fixed risk vs. leveraged risk), payout structures, and suitable platforms for each instrument requires significant learning and diligence, potentially overwhelming novice traders compared to brokers with simpler product ranges.8
4.4 Unique Offering: Derived/Synthetic Indices Explained
A cornerstone of Deriv’s unique value proposition is its suite of proprietary Derived or Synthetic Indices.2 These include Volatility Indices (e.g., VIX 25 mentioned in a book title 53), Crash/Boom Indices, and others designed to simulate real-world market dynamics and volatility patterns.7
According to Deriv, these indices are generated using a “cryptographically secure random number generator”.7 Their primary advertised advantage is their continuous availability – they can be traded 24 hours a day, 7 days a week, including weekends and holidays, completely unaffected by real-world market hours, global events, or liquidity constraints that impact traditional assets.7
These indices are heavily integrated across Deriv’s platforms and are available for trading via CFDs, Digital Options, Multipliers, and Accumulators.8 Their prominence suggests they are strategically important for Deriv. Continuous 24/7 availability likely drives platform engagement and trading volume. Furthermore, as the indices are proprietary and Deriv controls the price generation mechanism, the broker acts as the direct counterparty and market maker. This internalizes the trading flow and potentially allows for higher profit margins compared to hedging exposure on external markets. However, this proprietary nature is also a source of risk and controversy. Since there is no external, verifiable price feed for these indices, users who experience unfavorable price movements may suspect manipulation, as reflected in some user complaints.24 Any perceived irregularities in the price feed directly impact Deriv’s reputation, unlike issues with externally priced assets like Forex or stocks. Thus, while strategically valuable, Synthetic Indices represent a significant concentration of platform and reputational risk for the broker.
4.5 Value-Added Features
Beyond core trading products, Deriv offers several additional features:
- Copy Trading: Enables users to follow and automatically replicate the trades of experienced traders, available specifically on the Deriv cTrader platform.5
- Automation & APIs: Deriv Bot provides code-free automation.5 For more advanced users or third-party developers, Deriv provides APIs (Application Programming Interfaces) allowing the creation of custom trading applications or services that leverage Deriv’s trading infrastructure.2 Deriv maintains public GitHub repositories for some of its applications and libraries.57
- P2P Transfers (Deriv P2P): A peer-to-peer system facilitating deposits and withdrawals by allowing verified users to exchange funds directly with each other, often using local payment methods.4
Table 2: Comparison of Deriv’s Binary Options (“Digital Options”) Trading Platforms
Feature | Deriv Trader | SmartTrader (Legacy) | Deriv Bot |
Platform Type | Web-based | Web-based | Web-based Automation Builder |
Key Focus | Trading Digital Options, Multipliers, Accumulators 6 | Trading Digital Options (legacy interface) 3 | Building & running automated strategies for Digital Options 5 |
Available Options | Digital Options (Rise/Fall, Higher/Lower, Touch/No Touch, Digits) 8 | Digital Options (similar types likely) 8 | Executes Digital Option trades based on built strategies 8 |
Other Products | Multipliers, Accumulators 6 | Primarily Options | N/A (Executes trades, doesn’t offer manual trading) |
Asset Focus | Forex, Indices, Commodities, Synthetics 6 | Forex, Indices, Commodities, Synthetics 17 | Forex, Indices, Commodities, Synthetics (via strategies) 52 |
Automation | Manual Trading | Manual Trading | Primary Function (Visual Strategy Builder) 52 |
User Interface | Modern, user-friendly design 51 | Unique, potentially older interface from Binary.com era 3 | Drag-and-drop block interface 8 |
Suitability | Beginners to Advanced (Manual Options Trading) | Users familiar with Binary.com interface | Traders seeking automation without coding (All levels) |
5. Account Operations: Funding, Fees, and Withdrawals
Smooth and transparent account operations are vital for trader confidence. This section examines Deriv.com’s account structures, funding mechanisms, fee policies, and the often-contentious withdrawal process.
5.1 Account Structures and Minimum Requirements
Deriv organizes its offerings primarily through the Trader’s Hub, which serves as a central dashboard for accessing various trading accounts and platforms available based on the user’s region.8 Accounts can generally be categorized based on the products traded:
- CFD Accounts: These grant access to platforms like Deriv MT5 (with Standard, Financial, and Swap-free sub-types), Deriv X, and Deriv cTrader, focusing on leveraged CFD trading across various asset classes.8
- Options & Multipliers Accounts: These provide access to platforms like Deriv Trader, Deriv Bot, SmartTrader, and the Deriv GO mobile app, enabling trading of Digital Options, Multipliers, and Accumulators.8
- Deriv P2P Account: Facilitates peer-to-peer deposits and withdrawals, linked to a user’s main Deriv real USD account.8
Deriv promotes low barriers to entry. The minimum deposit varies depending on the chosen method, with e-wallets often allowing deposits as low as $5 or $10 (USD/EUR/GBP/AUD).8 The Deriv X platform reportedly has a minimum deposit of just $0.01.8 For trading options, the minimum stake required to open a position is notably low at $0.35 USD.6 This low capital requirement is highlighted as a key feature, making the platform accessible to traders with smaller initial capital.9
A demo account is readily available for all new users, pre-loaded with $10,000 in virtual funds.5 This allows prospective traders to practice strategies, familiarize themselves with the platforms, and test product features without risking real money. The demo account balance can also be reset if needed.8
5.2 Deposit and Withdrawal Methods
Deriv offers a wide array of payment methods for funding and withdrawing from accounts, although availability is contingent on the client’s geographical location.5 Common methods include 5:
- Credit and Debit Cards (Visa, Mastercard)
- Online Banking / Bank Wire Transfers
- E-wallets (Skrill, Neteller, WebMoney, Perfect Money, AstroPay, Jeton Wallet, Sticpay, Airtm, etc.)
- Cryptocurrencies (Bitcoin, Ethereum, Litecoin, Tether, etc.)
- Payment Vouchers
- Deriv P2P (Peer-to-peer transfers)
- Local Payment Methods (specific to certain regions)
Processing times vary significantly by method 60:
- Deposits: Often instant for cards, online banking, e-wallets, and vouchers. Crypto deposits are available once confirmed on the blockchain.
- Withdrawals: Can be instant for some online banking and e-wallet methods. Card withdrawals typically take 1 working day. Crypto withdrawals are subject to internal checks. Voucher and other methods vary (instant to 1 working day). Deriv P2P transactions aim for completion within 1 hour.
The Deriv P2P system warrants special mention.4 It allows verified users 8 to bypass traditional financial intermediaries by exchanging funds directly with other Deriv users within the platform, often using local payment methods convenient in their respective regions. While this can offer speed and accessibility, particularly where traditional methods are slow or costly, it introduces an element of counterparty risk. The success of the transaction depends on the peer fulfilling their side of the exchange. Although Deriv likely employs escrow mechanisms and verification processes, the risk of encountering delays or potentially fraudulent users within the P2P system exists, shifting some transactional risk from the broker directly onto the participating users.22
5.3 Fee Transparency: Trading Costs and Non-Trading Fees
Deriv generally promotes itself as offering competitive trading costs.2
- Trading Costs: For CFD trading on platforms like MT5, Deriv X, and cTrader, costs typically involve spreads (the difference between buy and sell prices) and potentially overnight swap fees (though swap-free accounts exist 8). Deriv claims competitive spreads and zero commissions on some products like MT5.2 For Digital Options, there are no direct commissions, but the cost is embedded within the payout structure. If a prediction is correct, the payout is a fixed percentage of the stake, typically less than 100% (e.g., 85% payout means the broker retains 15%). The exact payout percentages are not specified in the general documentation and likely vary based on asset, contract type, duration, and market conditions.8 The potential payout for options is advertised as potentially exceeding 200% in some cases, likely referring to specific option types or market conditions.51
- Non-Trading Fees:
- Deposit and Withdrawal Fees: Deriv’s terms state the company reserves the right to charge deposit and/or withdrawal fees.63 However, the specific fee amounts, applicable methods, or conditions triggering these fees are not detailed in the primary terms or help center snippets reviewed.8 Users are generally advised to check the Cashier or Payment Methods page for details pertinent to their account and region.8 While explicit fees aren’t detailed, the frequent user complaints regarding withdrawal problems 21 suggest potential friction, even if not directly labeled as fees.
- Inactivity Fees (Dormancy Fees): Deriv implements a dormant account fee. If a client’s account shows no trading activity for 12 consecutive months, it is classified as dormant. A fee of up to $25 (or currency equivalent) may be charged every six months thereafter while the account remains dormant.8 Additionally, Deriv reserves the right to rescind funds from locked/suspended dormant accounts or inactive accounts with very low balances (e.g., <= $1 after 30 days inactivity).63 Demo accounts may be deleted after 30 days of inactivity, and inactive MT5 real accounts may be archived.63
Despite claims of “easy withdrawals” 5 and a wide array of methods 5, a significant volume of user complaints centers specifically on the withdrawal process.21 Reports detail unexpected delays, rejection of withdrawal requests, accounts being blocked or restricted during withdrawal attempts, funds allegedly disappearing, and difficulties getting clear explanations or resolutions from customer support. This recurring pattern suggests a substantial disconnect between the advertised ease of accessing funds and the actual experience encountered by some users, representing a major operational concern and a significant source of user frustration and distrust.
Table 3: Key Fees and Minimum Deposit Information for Deriv.com
Fee/Requirement | Amount/Rate | Conditions | Relevant Snippets |
Minimum Deposit | Varies by method; $5-$10 USD/EUR/GBP/AUD via e-wallets; $0.01 USD for Deriv X | Depends on payment method chosen. | 8 |
Minimum Option Stake | $0.35 USD | Minimum amount to open a Digital Option trade. | 6 |
Trading Commissions (Options) | $0 (Embedded in payout) | Payout percentage on winning trades is typically <100%; exact % varies. | 6 |
Trading Commissions (CFDs) | Often $0 (e.g., on MT5) | Check specific account type/platform; main cost is spread. | 2 |
Spreads (CFDs) | Variable; Claimed competitive | Difference between buy/sell price; varies by asset and market conditions. | 2 |
Deposit Fees | Potentially $0; Deriv reserves right to charge | Not specified in T&Cs/Help Centre; check Cashier/Payment Methods page. | 8 |
Withdrawal Fees | Potentially $0; Deriv reserves right to charge | Not specified in T&Cs/Help Centre; check Cashier/Payment Methods page. User complaints focus on process. | 8 |
Inactivity (Dormant) Fee | Up to $25 (or equiv.) every 6 months | Charged after 12 months of no account transactions. | 8 |
Fund Rescission (Dormant) | Full balance | Possible for locked/suspended accounts dormant >12 months. | 63 |
Fund Rescission (Low Bal.) | Full balance | Possible for accounts inactive >30 days with balance <= $1. | 63 |
Note: Fee information, especially for deposits and withdrawals, may vary based on client location and payment method. Users should verify current fees directly through their Deriv account cashier.
6. User Experience: Support, Education, and Community Feedback
The overall user experience encompasses interactions with customer support, the quality of educational materials, and the collective sentiment expressed by the trading community.
6.1 Customer Support Accessibility and Effectiveness
Deriv promotes 24/7 customer support availability.5 The primary contact method appears to be Live Chat, frequently referenced in user interactions and company responses.8 An email address (support@deriv.com) is also provided for contact.17 While the ‘Contact Us’ page lists global office details 68, direct phone support does not seem to be emphasized as a main channel for immediate assistance. (Note: The ‘Contact Us’ page was inaccessible during one phase of research 69).
The effectiveness of customer support receives decidedly mixed reviews. Some users, particularly those defending the broker against scam accusations, suggest support is adequate or that issues stem from user error.71 However, a substantial volume of feedback paints a different picture. Many users report frustrating experiences, characterizing support responses as generic, unhelpful, or slow, especially when dealing with complex issues like blocked withdrawals or account discrepancies.20 A recurring theme involves users being given ticket numbers and assurances of resolution within a specific timeframe, only for the issue to remain unresolved after days or weeks, leading to repeated contacts and a feeling of being given the “run around”.20 This pattern suggests potential inefficiencies or bottlenecks within the support structure, particularly in escalating and resolving problems beyond basic queries, contributing significantly to user dissatisfaction when problems arise.
Regarding language support, English is the default. One review specifically noted the lack of Thai language support.21 Given Deriv’s global operations, support in other major languages is likely available, although not explicitly detailed in the provided materials (Tamil was mentioned for Binary.com 47).
6.2 Educational Offerings: Empowering the Trader
Deriv provides a range of educational resources aimed at traders of varying experience levels, primarily housed within the Deriv Academy section of its website.5 Key offerings include:
- Demo Account: The universally available demo account with $10,000 in replenishable virtual funds serves as a fundamental learning tool.5
- Courses: Structured learning modules covering platform usage (e.g., MT5), specific Deriv products (Volatility Indices, Forex, other Derivatives like Options, Accumulators, Multipliers), and fundamental trading concepts.61
- Guides and Ebooks: A library of written materials covering topics such as trading strategies, market analysis (e.g., chart patterns), and introductions to different asset classes like stocks and forex.61
- Glossary: An explanation of common trading terms.61
- Blog: Likely contains market analysis, trading tips, and company updates, although specific content wasn’t detailed.61 A book specifically on trading Deriv’s Volatility 25 index also exists, though published externally.53
While these resources cover a decent range of topics, some external reviews have characterized Deriv’s educational offerings as limited compared to industry leaders.21 The quality appears focused on platform functionality and basic concepts, which is helpful for beginners, but may lack the depth required for advanced traders seeking sophisticated market analysis or strategy development resources directly from the broker.
6.3 Voice of the User: Synthesizing Reviews
Aggregating user feedback from various sources reveals a polarized view of Deriv.com.
Positive Feedback often highlights:
- Longevity and Experience: Deriv’s long history (as Binary.com) is seen as a sign of stability and experience in the industry.28
- Product and Platform Variety: The wide range of trading platforms and unique instruments (especially Synthetic Indices, Multipliers, Options) appeals to traders seeking diverse opportunities.5
- Accessibility: Low minimum deposit and stake requirements make it accessible for traders with limited capital.6
- Automation: The availability of Deriv Bot for code-free strategy automation is valued.5
- Regulation: The fact that Deriv holds licenses in multiple jurisdictions (including Malta) is cited as a positive, though the nuances are often overlooked in brief reviews.21
- High Ratings & Awards: Deriv actively promotes its high Trustpilot score (claiming 4.5/5 based on over 61,000 reviews) and various industry awards (e.g., “Broker of the Year” by FinanceFeeds).5 App store ratings are also generally high.23
- Community Defense: Some users in forums defend the broker, attributing negative experiences to trader error, poor risk management, or emotional trading rather than platform issues.71
Negative Feedback frequently centers on:
- Withdrawal Problems: This is arguably the most common and severe complaint. Users report significant delays, unexplained rejections, accounts being blocked specifically when attempting withdrawals, funds disappearing, and lack of effective support in resolving these issues.21
- Platform/Chart Manipulation: Accusations of unfair price manipulation, particularly concerning the proprietary Synthetic Indices where Deriv controls the feed, are recurrent.20
- Platform Instability: Complaints about the platform freezing, lagging, or producing errors that lead to financial losses.21
- Bot Issues: Some users report issues with the automated trading bots (DBot/Binary Bot) malfunctioning or causing unexpected losses.20
- Poor Customer Support: Experiences of unhelpful, generic, or non-responsive support, especially regarding financial discrepancies or account blocks.20
- Verification Issues: Problems completing Know Your Customer (KYC) verification, sometimes leading to account restrictions.23
- Scam Accusations: Due to the combination of withdrawal issues and manipulation concerns, numerous users explicitly label the platform a “scam”.20
Review Platforms: Deriv maintains a high volume of reviews on Trustpilot, but it’s noted that many of these are solicited by the company inviting users to leave feedback, which can influence the overall rating.19 Scores cited vary (e.g., 4.5/5 on Deriv’s site 5 vs. 2.69/5 on TrustFinance 21). Deriv’s own Community Forum is a valuable resource, hosting numerous threads detailing specific user problems and complaints.20 Google Play Store and Apple App Store reviews also reflect this mix of positive ratings and specific, detailed complaints about functionality and withdrawals.23 Reviews on platforms like ForexPeaceArmy were not available in the research material but are typically a source of broker feedback.
There appears to be a deliberate effort by Deriv to cultivate a positive online reputation, particularly through managing its Trustpilot presence.5 However, this curated image stands in stark contrast to the frequency and severity of complaints found on less controlled platforms, including its own community forum.20 This discrepancy suggests that the high advertised ratings may not fully represent the experiences of all users, especially those encountering significant operational issues. Potential clients should therefore treat prominently displayed high scores with caution and seek out diverse sources of feedback, paying close attention to the nature of recurring complaints.
7. Risk Assessment and Identified Controversies
Trading financial derivatives inherently involves risk, but certain products and broker practices can amplify these risks. Evaluating Deriv.com requires a clear understanding of both the general risks of binary options and the specific controversies associated with the broker.
7.1 The High-Risk Nature of Binary Options
Binary options are widely considered one of the riskiest financial products available to retail traders. Regulators and financial commentators frequently compare them to gambling rather than investing.12 Key reasons for this include:
- All-or-Nothing Payout: The structure means a small adverse price movement can result in the loss of the entire stake.12
- Negative Expected Return: Over time, the payout structure (where wins pay less than 100% of the stake risked) creates a statistical edge for the broker, making cumulative losses likely for the average trader.12
- Short Durations: Many binary options contracts have very short expiry times (minutes or even seconds), making outcomes highly unpredictable and akin to betting on short-term noise rather than fundamental trends.14
These characteristics led to widespread regulatory intervention. Reviews by authorities like ASIC found that a large majority (74-80%) of retail clients lost money trading binary options.14 Aggregate losses were substantial, with ASIC estimating Australian retail client net losses around $490 million in 2018 before stricter measures were imposed.26 This resulted in outright bans on the sale of binary options to retail clients in major jurisdictions like the EU, UK, Australia, Canada, and effective bans in the US for OTC brokers.12 Regulatory bodies like the CFTC and SEC have issued numerous warnings about fraud associated with unregistered offshore binary options platforms.46
7.2 Analysis of User Complaints
Beyond the general risks of the product, specific complaints leveled against Deriv.com warrant close attention. The most prominent and concerning issues consistently reported by users fall into two main categories:
- Withdrawal Issues & Account Blocking: As detailed previously, a significant number of users across multiple platforms report severe difficulties accessing their funds. Complaints include excessive delays beyond stated processing times, outright rejection of withdrawal requests without clear reasons, accounts being frozen or restricted specifically when withdrawal attempts are made, and funds allegedly disappearing from balances. Compounding these issues are reports of unresponsive or unhelpful customer support unable to resolve these critical financial problems.21 This cluster of complaints points towards significant friction in the fund retrieval process for some users, undermining trust in the broker’s financial operations.
- Platform Stability & Manipulation Concerns: Users report instances of platform instability, such as freezes, lags, or technical errors occurring during trading, allegedly leading to losses.20 More serious are the accusations of price manipulation, particularly directed at Deriv’s proprietary Synthetic Indices.24 Users claim that price movements on these indices seem designed to trigger losses, especially on larger trades, questioning the integrity of the price feed generated by Deriv’s claimed “random number generator”.7
The concentration of severe complaints around these two fundamental areas – fund accessibility and platform/price integrity – suggests these are the most critical operational or reputational weaknesses for Deriv. While any broker will receive some complaints, the consistency and severity of reports concerning withdrawals and alleged manipulation, especially of proprietary instruments, raise significant red flags.
7.3 Scrutiny of Synthetic Indices
The proprietary nature of Deriv’s Synthetic Indices is both a unique selling point and a major source of controversy. Because Deriv creates, controls, and is the sole market maker for these 24/7 indices 7, an inherent conflict of interest exists. Unlike trading forex or stocks where external market prices provide a benchmark, traders of Synthetic Indices rely entirely on Deriv’s generated price feed. This lack of external validation fuels user suspicion.24 When traders experience unexpected losses or perceive unusual price movements, especially around stop-loss levels or option expiry times, the absence of an independent reference makes it difficult to disprove claims of manipulation, regardless of the cryptographic security Deriv asserts for its random number generator.7
7.4 Conflicting Views: Financial Commission Membership vs. CSA Advisory
The contradictory assessments of the Financial Commission further complicate risk evaluation. Deriv presents its membership as a layer of client protection and a reliable avenue for dispute resolution.10 However, the CSA’s explicit warning labeling the organization as potentially fictitious or used by fraudulent entities casts serious doubt on its credibility.18 This leaves traders uncertain about the actual value and enforceability of the dispute resolution process and compensation fund offered through this body. Relying on this membership as a primary safety net appears questionable given the CSA’s stance.
7.5 Other Red Flags
Several other factors contribute to the overall risk profile:
- Clone Site Warnings: The Malta Financial Services Authority (MFSA) issued a specific warning about a clone entity, “DerivTradingLive,” using Deriv’s details to deceive the public.75 This highlights the real risk of phishing attacks and impersonation targeting Deriv’s brand and clients. Deriv itself provides resources on fraud prevention, indicating awareness of these threats.55
- Lack of Tier-1 Regulation: For clients outside the EU (Malta), Deriv primarily operates under offshore licenses (BVI, Vanuatu, Labuan, Mauritius, SVG registration).5 These jurisdictions generally offer lower levels of regulatory oversight, capital requirements, and investor protection compared to Tier-1 regulators like the FCA, ASIC, or CySEC (under MiFID). This lack of top-tier regulation is a significant concern for traders prioritizing maximum regulatory security.21
- Controversial Products Enabled by Regulation: Deriv’s operational structure, leveraging offshore licenses, enables it to continue offering products like binary/digital options and proprietary synthetic indices to a global audience, precisely because these products face bans or heavy restrictions in tightly regulated markets.12 While legal under those specific offshore frameworks, this strategy means clients in those regions are exposed to products deemed too harmful for retail investors elsewhere, often with fewer regulatory protections.
8. Conclusion and Expert Recommendations
Deriv.com, the successor to the pioneering binary options broker Binary.com, presents a complex picture for prospective traders, particularly those interested in binary (Digital) options. Its long operational history, extensive range of platforms, innovative proprietary products, and low entry requirements are notable strengths. However, these must be weighed against significant weaknesses and risks, including severe regulatory restrictions on its core binary options offering in major markets, a heavy reliance on offshore regulation, questionable dispute resolution mechanisms, and persistent, serious user complaints regarding fund withdrawals and platform integrity.
8.1 Balanced Assessment: Strengths vs. Weaknesses
Strengths:
- Longevity: Over 25 years of operational history provides a degree of establishment rare in the online brokerage industry.2
- Platform & Product Diversity: Offers an exceptionally wide array of trading platforms (MT5, cTrader, Deriv X, Deriv Trader, Deriv Bot, etc.) and instruments, including standard CFDs alongside unique options, Multipliers, Accumulators, and 24/7 Synthetic Indices.5
- Accessibility: Low minimum deposit requirements ($5-$10) and option stakes ($0.35) lower the barrier to entry.6
- Innovation: Features like code-free automation (Deriv Bot), P2P transfers, and proprietary instruments demonstrate ongoing development.5
- Multi-Jurisdictional Regulation: Holds licenses in several jurisdictions, including an EU license via the MFSA in Malta.5
Weaknesses:
- Binary Options Bans: Cannot legally offer binary/digital options to retail clients in the EU, UK, Australia, Canada, US, and potentially other regulated markets.12
- Offshore Regulatory Reliance: A significant portion of its client base likely falls under offshore regulation (BVI, Vanuatu, Labuan, Mauritius, SVG), which typically offers weaker investor protection than Tier-1 jurisdictions.5
- Withdrawal & Integrity Complaints: Faces persistent and severe user complaints regarding difficulties withdrawing funds and alleged platform/price manipulation, especially concerning Synthetic Indices.20
- Dispute Resolution Uncertainty: Membership in the Financial Commission is promoted as a benefit but questioned by the CSA, creating ambiguity about its reliability.10
- Complexity & Transparency: The sheer number of platforms and unique products can be overwhelming. Lack of transparency regarding fund segregation details adds to concerns.5
8.2 Suitability Profile: Who Should Consider (and Avoid) Deriv.com for Binary Options?
Deriv.com might be considered by traders who:
- Reside in a jurisdiction where Deriv legally offers binary/digital options and other desired products (i.e., outside the major ban areas).
- Specifically seek binary/digital options trading or Deriv’s unique offerings like Synthetic Indices, Multipliers, or Accumulators.
- Prioritize low minimum deposit and stake requirements.
- Value a wide selection of trading platforms and automation tools (Deriv Bot).
- Understand and fully accept the extremely high risks associated with binary options and leveraged derivatives.
- Are comfortable with the level of regulatory oversight provided by offshore jurisdictions or the MFSA (if applicable).
- Are attracted by the 24/7 trading opportunities offered by Synthetic Indices.
Deriv.com should likely be avoided by traders who:
- Reside in the EU, UK, Australia, Canada, USA, or other jurisdictions where binary options are banned for retail clients.
- Require the highest level of regulatory protection afforded by Tier-1 regulators (e.g., FCA, ASIC, CySEC, CFTC/NFA).
- Are risk-averse or new to trading and may not fully grasp the risks of binary options or complex derivatives.
- Prioritize undisputed ease of fund withdrawal and robust client fund security above all else.
- Are uncomfortable trading proprietary instruments like Synthetic Indices due to transparency and manipulation concerns.
- Prefer brokers with simpler, more focused product offerings and clearer fee structures.
- Are deterred by the volume of negative user feedback regarding core operational aspects.
8.3 Final Recommendations for Prospective Traders
Given the complexities and risks identified, prospective traders considering Deriv.com, especially for binary/digital options, should proceed with extreme caution and undertake thorough due diligence:
- Verify Jurisdictional Legality: Absolutely confirm that Deriv is permitted to offer the specific products (especially binary/digital options) you intend to trade to residents of your country. Do not assume availability based on website access alone.
- Acknowledge and Understand Risks: Fully internalize the high-risk nature of binary options and leveraged products like CFDs and Multipliers. Treat trading capital as risk capital – money you can afford to lose entirely.12 Utilize the demo account extensively before committing real funds.5
- Scrutinize Applicable Regulation: Identify which Deriv entity you would be contracting with and which regulatory body oversees it. Understand the specific protections (or lack thereof) offered by that regulator, particularly regarding fund segregation and compensation schemes. Be aware of the limitations of offshore regulation and the controversy surrounding the Financial Commission.5
- Test Withdrawals Early and Small: If proceeding with a live account, start with the minimum deposit and initiate a small withdrawal early in the process. This serves as a practical test of the withdrawal system’s efficiency and helps identify potential hurdles before committing significant capital [Insight 8].
- Exercise Caution with Proprietary Instruments: Approach Deriv’s Synthetic Indices with heightened skepticism due to their proprietary nature, lack of external price verification, and associated user complaints about manipulation. If transparency and verifiable pricing are paramount, consider sticking to traditional assets like Forex or major indices.24
- Seek Diverse Independent Feedback: Look beyond Deriv’s promoted ratings on Trustpilot. Actively search for user reviews and discussions on independent forums (like ForexPeaceArmy, though not covered here), social media, and Deriv’s own community forum. Pay close attention to the details and recurrence of complaints, especially those concerning withdrawals and platform integrity [Insight 10].
- Prioritize Account Security: Employ strong, unique passwords for your Deriv account and enable two-factor authentication if available. Be extremely vigilant against phishing scams attempting to impersonate Deriv via email, social media, or messaging apps.55 Remember Deriv states it will not ask for sensitive details via social media.66
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