How high are Deriv spreads compared to the competition? Are there any fees to trade? We have researched it all so you do not have to. Our experts took a closer look at Deriv spreads to verify if this forex broker is as cost efficient as they advertise. We have found they have competitive spreads, however if spreads are your only criteria, it is better to find other brokers such as Exness. If you are looking for an overall high quality trading experience, we recommend Deriv because the fees are almost non existent and the execution is fast. You can read about our recommendation in detail in our Deriv.com review.
Deriv is a Non-Dealing Desk (NDD) broker with Electronic Communications Network (ECN) and Straight-Through Processing (STP) execution on trades. Therefore, the spreads that traders can expect with Deriv are variable.
A Floating or variable Deriv forex spread means that trading costs will depend on the trading account being used, the financial instrument being traded, and the market conditions on the day that trades are executed.
Deriv does not publish the typical spreads that can be expected. However, upon registering a demo account, traders can view the typical spreads on the DTrader platform. Examples of typical Deriv spreads are as follows according to the financial markets:
- Forex majors (EUR/USD) – from 0.5 pips
- Forex minors (AUD/CAD) – from 0.6 pips
- US Index – 3.9 pips
- BTC/USD – 16.6 pips
- Gold/USD – 1.7 pips
Deriv Spreads Compared to Competitors
Below traders can view a side-by-side comparison of the Deriv spread against other forex and CFD brokers in the industry.
|EUR/USD||0.5 pips||0.0 pips||0.0 pips||0.0 pips|
|AUD/CAD||0.6 pips||3 pips||0.3 pips||0.0 pips|
|US Tech||11.7 pips||2.03 pips||0.0 pips||1 pip|
|BTC/USD||16.6 pips||26 pips||0.0 pips||2.2 pips|
|Gold/USD||1.7 pips||0.25 pips||0.0 pips||0.0 pips|
Compared with the rest of the industry, the Deriv broker spread is wider than competitors. However, the variable spread charged by Deriv is competitive, especially considering the ultra-low commission charge of 0.015% on forex and CFDs.
Deriv Trading Fees
The Deriv spread varies according to the trading account, financial instrument, and the market conditions when trades occur. For example, spreads on EUR/USD (the most popular and liquid currency pair) typically start from 0.5 pips.
Deriv charges commission fees of 0.015% on forex and CFD instruments, especially where spreads are the tightest. This ensures that Deriv can be compensated for facilitating the trade.
Deriv does not publish its swap or overnight fees. However, Deriv provides a comprehensive calculator that traders can use to estimate the swap charges or payments they can expect on Synthetic and conventional markets.
Typically, swap fees are calculated by multiplying the trading volume by the contract size and asset price. This is then multiplied by (swap rate /100) / 360, providing you with the swap rate in USD.
Deriv Broker Fees
Deposit and withdrawal fees
Deriv does not apply any fees to deposits or withdrawals. However, payment providers could apply such fees.
If a trading account has become dormant after twelve consecutive months, a fee of 25 USD or an equivalent in EUR, AUD, or GBP will be charged.
Currency Conversion Fees
Currency conversion fees could apply if you deposit or withdraw in a currency other than the base currency of your Deriv trading account. Furthermore, for instance, if you have a ZAR account and trade EUR/USD, you will be subject to currency conversion fees.
What is Deriv’s spread commission?
The spread is a fee taken by Deriv that is set for each currency a trader will bear when they enter a purchase or sell transaction.
How does Deriv make a profit?
Deriv charges spread and commissions on trading accounts, which is how the broker profits from facilitating trades.
What is the average Deriv broker spread?
The average spread traders can expect with Deriv starts from 0.5 pips on EUR/USD.