Deriv stands out as a prominent online trading platform accessible in the UK, earning recognition in the global financial market for its pioneering trading products and solutions.
Centred on Deriv’s UK operations, this comprehensive analysis highlights the platform’s background, the diverse product range catering to UK traders, and the wide array of payment methods tailored to the UK market.
Understanding Forex Regulation in the UK
Forex Regulation in the UK
Forex trading in the United Kingdom is governed by the Financial Conduct Authority (FCA), although Deriv is not subject to FCA oversight. The FCA provides a secure trading environment to protect retail clients and imposes certain restrictions.
These regulations apply to all FCA-regulated Forex brokers and significantly impact UK-based traders’ interaction with platforms like Deriv.
Implications for UK Traders on Deriv
One of the most important regulations enforced by the FCA is the limitation on Forex leverage. Retail clients are limited to no more than 1:30 leverage ratios. This restriction protects traders from substantial losses.
Despite not being directly regulated by the FCA, Deriv aligns its services with industry standards to ensure a secure trading environment. Therefore, UK traders on Deriv can expect maximum leverage of 1:30 when trading Forex.
Licensing and Regulation of Deriv
Global Regulatory Framework of Deriv
Deriv operates independently of Financial Conduct Authority (FCA) regulations in the United Kingdom. Nonetheless, it complies with various licenses and regulatory frameworks in various regions of the globe, including those imposed by:
- The Malta Financial Services Authority (MFSA) licenses and regulates Deriv Investments (Europe) Ltd.
- Deriv (FX) Ltd is a Labuan Fintech Association member licensed by the Labuan Financial Services Authority (LFSA).
- Deriv (BVI) Ltd is a British Virgin Islands Financial Services Commission-licensed (BVI FSC) company.
- Deriv (V) Ltd is a Vanuatu Financial Services Commission-licensed (VFSC) company and a member of the Financial Markets Association.
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The Company Behind Deriv.com
Overview of Deriv Group
Deriv.com operates under the management of various subsidiaries belonging to Deriv Holdings (Guernsey) Ltd. Several entities, including Deriv Investments (Europe) Ltd, Deriv (FX) Ltd, Deriv (BVI) Ltd, Deriv Ltd and Deriv (SVG), LLC are part of this group.
Furthermore, these establishments operate in different countries globally, such as Malta, Malaysia, the British Virgin Islands, Vanuatu, St. Vincent and the Grenadines, and Guernsey.
Products Available for UK Traders
Range of Trading Options
Despite variations in regulatory requirements, Deriv ensures consistency in offering a diverse array of trading products to both UK consumers and customers in other regions.
Forex Trading
Forex trading entails buying and selling currency pairs in the hopes of profiting from changes in exchange rates. Despite the UK traders’ leverage limit of up to 1:30, Forex remains a popular trading option due to its high liquidity and 24/5 market availability.
Cryptocurrency Trading
Deriv offers trading options for several popular cryptocurrencies, such as Bitcoin, Ethereum, and Litecoin. These assets have significant volatility levels that can yield substantial profits and involve significant risks.
Commodities and Indices Trading
In addition to the previously mentioned trading products, Deriv provides a selection of commodities like gold, silver, and oil, along with indices representing groups of companies.
You can use TradingView with Deriv in the UK.
Payment Methods Supported in the UK
Bank Wire Transfers
Bank wire transfers are one of the most secure and widely utilized ways, enabling traders to deposit and withdraw funds straight from their bank accounts. However, depending on the bank’s policies, this technique typically involves lengthy processing time and fees.
Credit/Debit Cards
Traders can utilize their credit or debit cards for speedier transactions. This approach is widely accepted and allows for instant deposits. Withdrawal times vary, but they are often processed within a few days
E-Wallets
You can use e-wallets like Skrill, FasaPay, AstroPay, SticPay, and Neteller on Deriv. These platforms provide a convenient and efficient solution for handling trade funds with instant deposits and fast withdrawals.
Cryptocurrency Payments
As digital currencies gain more traction, Deriv has responded by enabling its customers to transact using cryptocurrency. This advancement offers improved confidentiality and generally faster transaction times, subject to any network congestion factors.
Fiat Onramp Payments
Traders with cryptocurrency trading accounts can use Changelly, Banxa, or XanPool to buy cryptocurrency for deposits, and transfer funds from their Deriv Account to the exchange during withdrawals.
Deriv P2P Payments
Peer-to-peer (P2P) technology from Deriv Cashier is a convenient and unique function that allows traders to transfer funds more easily. This lets traders deposit or withdraw funds by matching them with other traders eager to swap funds.
Frequently Asked Questions
Which currency does Deriv use?
Deriv’s transactions are typically conducted in US dollars (USD), although it also accepts other currencies based on the trader’s location, including EUR, GBP, AUD, and more.
Is Deriv regulated in the UK?
No, Deriv is not regulated in the UK. Instead, it is regulated by several international organizations, including the MFSA, LFSA, BVI FSC, and VFSC.
What payment methods are available for UK traders on Deriv?
Credit and debit cards, bank wire transfers, e-wallets like Skrill and Neteller, and even cryptocurrency transactions for deposits and withdrawals are available to UK traders on Deriv.
Where is Deriv based?
Deriv has offices in Europe, Asia, the Middle East, Oceania, and Eastern Europe.