Where Does Deriv Legally Operate?

Is Deriv legal and safe?

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Deriv is a legal and safe broker looking at how many financial regulators ensure that the broker's services do not disenfranchise customers. Deriv is overseen regularly and is licensed by a respectable authority. It is a global broker subject to the jurisdiction of several regulators, including:

• Labuan Financial Services Authority (MB/18/0024).

• British Virgin Islands Financial Services Commission (SIBA/L/18/1114).

• Malta Financial Services Authority (MFSA, 71479)

• Vanuatu Financial Services Commission (VFSC, 14556).

Therefore, based on the regulatory framework and compliance requirements that Deriv has to offer, they are among the legit brokers. In some countries, like the EU, this broker limits the amount of leverage retail traders can use and also ensures that the user's funds are stored in a segregated account. They follow the strict protocols set by EU financial regulators to ensure that clients get the best trading experience.

Brokerages that have physical offices are said to be safer and more reliable. Deriv has physical offices that clients can visit in most of the jurisdictions in which it is regulated. Below are locations where Deriv has physical offices.

• UK: Deriv Technologies Limited, Suite 1, Ground Floor, Block D, Apex Forbury Road, Reading, RG1 1AX

• Berlin: Kemperplatz 1 Mitte D, 10785 Berlin, Germany

• France: 17 Rue d'Antin, 75002 Paris

• Malta: Level 3, W Business Centre, Triq Dun Karm, Birkirkara, BKR 9033;

• Cyprus: 181, Leoforos Archiepiskopou Makariou III Avenue 15 Business Centre, 1st Floor, 3030, Limassol, Cyprus

• Vanuatu: Yumiwork, Lolam Building, Kumul Highway, Land # 11/OD22/021, Port Vila, Vanuatu.

• Guernsey: Suite 5, One Cornet Street, St Peter Port, Guernsey GY1 1 BZ

• British Virgin Islands: 2nd Floor, Suite 2, Omar Hodge Building, 325 Waterfront Drive, Road Town, Tortola, VG 1110, British Virgin Islands

• Rwanda: Level 2, East Wing, Kigali Heights, KG7 Avenue, Kigali

• Dubai: Office 1902, Jumeirah Business Center 1, JLT Cluster G

• Hong Kong: Room 408A, Empire Centre, 68 Mody Road, Tsim Sha Tsui East, Kowloon, Hong Kong

• Malaysia:

• Cyberjaya: Deriv HQ, 3500, Jalan Teknokrat 3, 63000 Cyberjaya, Selangor

• Ipoh: E-5-6, Soho Ipoh 2, Jalan Sultan Idris Shah, Ipoh 30000, Perak

• Labuan: F16, Level 1, Paragon Labuan, Jalan Tun Mustapha, Labuan 87000, Sabah

• Melaka: 67-1 & 69-1, Jalan KLJ 6, Taman Kota Laksamana Jaya, Melaka 75200.

Available Deriv countries

Deriv is available in countries like South Africa, Nigeria, Botswana, India, and Japan. Other Deriv countries include:

• Albania

• Bangladesh

• Argentina

• Colombia

• Germany

• United Kingdom (UK)

• Mexico

• Monaco

• Costa Rica

• Dominican Republic

• Egypt

• Ghana

• Italy

• Jamaica

• Malaysia

• Sri Lanka

• Thailand

• Turkey

• Brazil

• Chile

• Cambodia

• Kenya

• Kuwait

• China

• New Zealand

• Pakistan

• Philippines

• Spain

• Sweden

• Ukraine

• Uruguay

• Uzbekistan

• Croatia

• Cyprus

• Czech Republic

• Denmark

• France

• Greece

• Hungary, etc.

Which country is Deriv banned from?

The broker does not serve clients from several countries, such as the USA, Canada, Malaysia, Israel, Belarus (BY), the Caribbean (BQ), the Cayman Islands (KY), Hong Kong (HK), Jersey (JE), and others. While there might not be more accurate data on which countries do not accept Deriv, potential traders in several regions can find out for themselves if they can trade with Deriv. They can accomplish this by getting in touch with Deriv's customer service and inquiring as to whether their nation is one of the Deriv available countries.

Is binary options trading risky? 

Yes, because trading binary options involves a lot of speculation, it is inherently risky.  Binary options, ease of use, and rapid returns could draw in those looking to make quick money. Even though this kind of trading appears to have high returns if you predict the right price movement, you stand to lose 100% of your investment if the price moves against your prediction. However, this can result in compulsive trading and addiction, raising the possibility of significant financial losses.

According to an ASIC review, up to 80% of binary options investors experienced a loss of capital, suggesting that the high loss percentage of binary trading is where the risk lies. Among the key reasons why binary trading is risky,  the speculative or predictive state tops the chart. Accurately predicting market movements is difficult, which makes it speculative by nature.

Again, the short-term nature of binary options is reflected in their short expiration periods, which can be anywhere from minutes to hours. The possibility of rapid losses increases for short-term traders when there are abrupt changes in the market. In contrast to other trading types, binary options do not grant ownership of the asset; traders place bets on the movement of the price of assets with limited resources for risk management.

Understanding the factors influencing the value of binary options requires a firm grasp of market dynamics, as binary option pricing structures can be complex and subject to market volatility. It could be difficult for inexperienced traders to handle these complexities.