Choosing the right broker is essential when trading in the forex and CFD markets. With numerous options available, traders often find it difficult to make the best decision. Among the most popular brokers are FXTM and Deriv.com. Both have strong reputations, but how do they stack up against each other? In this blog post, we’ll compare FXTM vs Deriv.com based on several key factors such as fees, trading platforms, account types, and customer support.
Before we jump into our full review, let’s take a quick look at the table below which provides a clear side-by-side comparison of the key features of both FXTM and Deriv.com to help you quickly see the differences.
| Feature | FXTM | Deriv.com |
|---|---|---|
| Year Established | 2011 | 1999 (rebranded as Deriv in 2020) |
| Regulation | CySEC, FCA, FSC, and others | MFSA, LFSA, VFSC |
| Trading Platforms | MetaTrader 4 (MT4), MetaTrader 5 (MT5) | DTrader, SmartTrader, DBot, MT5 |
| Account Types | Standard, Cent, ECN, ECN Zero | Standard, Synthetic Accounts |
| Spreads | From 0.1 pips | Tight spreads on forex and synthetics |
| Commission | Varies based on account type | Commission-free on most trades |
| Swap Fees | Yes, for overnight positions | Yes, but generally lower |
| Deposit Fees | No | No |
| Withdrawal Fees | Yes, varies by method | No |
| Minimum Deposit | $10 for Cent Account, $100 for Standard | $5 |
| Assets Available | Forex, Stocks, Commodities, Indices, Cryptos | Forex, Cryptos, Commodities, Synthetic Indices |
| Leverage | Up to 1:1000 | Up to 1:1000 (depending on jurisdiction) |
| Customer Support | 24/5 live chat, email, phone | Live chat, email, help center |
| Educational Resources | Extensive (webinars, tutorials, etc.) | Basic guides and platform tutorials |
| Best For | Advanced traders & education seekers | Beginners & synthetic index traders |
Overview of FXTM and Deriv.com
FXTM (ForexTime) is a global online trading broker known for its user-friendly interface and wide range of financial products. Founded in 2011, FXTM has quickly grown to become one of the most recognized brokers, offering services in over 150 countries. It caters to both beginners and experienced traders by offering a variety of trading accounts, educational resources, and competitive spreads.
Deriv.com, on the other hand, was established in 1999 (initially known as Binary.com) and rebranded as Deriv in 2020. Deriv offers a simplified trading experience, making it attractive to beginners. It focuses on forex, commodities, cryptocurrencies, and synthetic indices. While Deriv may not have the same global presence as FXTM, it’s known for its innovation and user-friendly approach.
Trading Platforms
When comparing FXTM vs Deriv.com, the trading platform is a critical aspect.
- FXTM provides access to MetaTrader 4 (MT4) and MetaTrader 5 (MT5), two of the most widely used platforms in the trading world. These platforms offer advanced charting tools, automated trading options, and a wide array of technical indicators. Whether you’re a seasoned trader looking for advanced features or a beginner, MT4 and MT5 on FXTM offer a smooth experience.
- Deriv.com, on the other hand, offers its proprietary trading platforms: DTrader, SmartTrader, and DBot. DTrader is ideal for those who want a user-friendly platform with essential tools, while DBot is excellent for those interested in automated trading using a drag-and-drop bot builder. Deriv also supports MT5, which allows more experienced traders to use advanced strategies.
Verdict: FXTM wins for providing industry-standard platforms like MT4 and MT5, while Deriv excels in offering unique, proprietary platforms for simpler, intuitive trading.
Fees and Spreads
Understanding the fee structure is crucial for any trader as it directly impacts profitability.
- FXTM offers competitive spreads that start from 0.1 pips depending on the account type. They also offer commission-based accounts with tighter spreads, ideal for traders who need more flexibility. In addition to spreads, FXTM charges swap fees for holding positions overnight. However, there are no deposit fees, but withdrawals might incur some charges depending on the payment method.
- Deriv.com has a more straightforward fee structure with tight spreads, particularly for synthetic indices. The broker has no commission fees for most trades, and its swap rates are generally low. Another advantage of Deriv is that there are no deposit or withdrawal fees, making it a cost-effective option for smaller traders.
Verdict: Deriv.com offers lower overall fees and is more cost-effective for beginners or traders with lower volumes. However, FXTM provides tighter spreads for more advanced traders with larger accounts.
Account Types
Both FXTM and Deriv.com offer a variety of account types to suit different trading needs.
- FXTM provides several account types, including Standard, Cent, ECN, and ECN Zero. These accounts cater to different levels of experience and risk tolerance. The Standard account is ideal for beginners, while the ECN accounts are better for more advanced traders looking for tighter spreads and faster execution speeds.
- Deriv.com offers a much simpler approach with just a Standard Account that supports multiple asset classes. However, Deriv also stands out with its synthetic accounts, allowing traders to trade synthetic indices that mimic real-world market conditions but are independent of actual stock markets.
Verdict: FXTM offers more variety with its account types, making it more versatile. However, Deriv.com’s simplicity might appeal to newer traders or those interested in synthetic indices.
Regulation and Safety
The safety of your funds and the broker’s regulatory status are paramount when choosing a broker.
- FXTM is well-regulated and has licenses from several top-tier financial authorities, including the Cyprus Securities and Exchange Commission (CySEC), the Financial Conduct Authority (FCA) in the UK, and the Financial Services Commission (FSC) of Mauritius. This high level of regulation ensures that traders’ funds are kept safe and the broker operates transparently.
- Deriv.com is also regulated, but not to the same extent as FXTM. It holds licenses from the Malta Financial Services Authority (MFSA), the Labuan Financial Services Authority (LFSA) in Malaysia, and the Vanuatu Financial Services Commission (VFSC). While these regulatory bodies offer a reasonable level of oversight, they are not as stringent as the likes of CySEC or the FCA.
Verdict: FXTM wins in terms of regulation and safety, providing traders with more peace of mind.
Customer Support
Great customer support can make or break your experience with a broker.
- FXTM offers 24/5 customer support through live chat, email, and phone. The broker also provides support in multiple languages, making it accessible to traders worldwide.
- Deriv.com provides support through live chat and email, but the response times are slightly slower compared to FXTM. Deriv also offers a comprehensive help center for self-service, but they do not have as many language options as FXTM.
Verdict: FXTM provides more responsive and accessible customer service options, especially for traders needing immediate assistance.
Educational Resources
Both FXTM and Deriv.com offer educational materials to help traders improve their skills.
- FXTM is known for its extensive educational resources, including webinars, video tutorials, articles, and trading tools like an economic calendar and market analysis.
- Deriv.com provides a more limited range of educational materials, mainly focusing on the basics of trading and how to use their platforms. While their materials are helpful for beginners, more advanced traders might find them lacking.
Verdict: FXTM is a better choice for traders who value education and want access to high-quality learning resources.
Bottom Line
Choosing between FXTM vs Deriv.com ultimately depends on your specific trading needs.
- FXTM is ideal for more experienced traders looking for advanced trading tools, a range of account types, and high regulatory oversight. It’s also perfect for those who prioritize educational resources and customer support.
- Deriv.com is better suited for beginner traders or those interested in synthetic indices and commission-free trading. It offers a simplified trading experience with lower fees and a unique set of assets.
In conclusion, both brokers offer solid platforms, but the best one for you depends on your level of experience and the type of trading you’re interested in.