Deriv Copy Trading – All You Need to Know

Are you planning to start trading binary options? If so, Deriv provides a convenient way for beginners to get started. The brokerage firm’s recently launched copy trading platform enables new traders to follow the trading strategies of experts, allowing them to gain significant profits from the financial markets without prior trading experience.

Keep reading this guide to learn more about the Deriv copy trading platform and how to sign up with the broker.

What is Copy Trading?

Before we explore Deriv’s copy trading service, understanding the copy trading concept is important. Simply put, copy trading is a unique strategy where one trader (copy trader) mimics the trades of another (lead trader). If the lead trader closes winning trades, then the copy trader also earns a profit.

Copy trading has gained massive popularity in recent years as many consider the strategy a way of earning income passively. Like other copy trading providers, Deriv allows lead traders to collect commissions from their subscribers after making profits.

How to Register a Trading Account With Deriv

Deriv allows users to copy trades using both real and demo accounts. We recommend setting up a demo account first to try out the broker’s copy trading platform risk-free. To create this account, visit deriv.com and click “Open Demo Account.” Next, enter your email, agree to Deriv’s terms and conditions, and then press the “Create Demo Account” button.

After accessing your Deriv demo account, hit “Copy” on the homepage to find the available lead traders. We will discuss the criteria for finding the appropriate lead trader later in this guide.

If you wish to copy trades with a funded account, click the “Real Account” button and then submit the required Know Your Customer details. Deriv will verify the provided information within a few hours. After that, you can make your first deposit using your MasterCard or Visa-issued debit card. Deriv has set $10 as the minimum deposit amount.

To copy trades with a funded Deriv account, allocate your copy trading amount to your ideal lead trader and specify how much to use per trade. Once this is done, press “Copy.”

How Do You Find the Right Lead Trader on Deriv?

As a copy trader, you want to ensure that your investment fund is in the hands of a reliable lead trader. So, how do you determine the reliability of the lead traders on Deriv? Well, here is what you should look for:

1. Number of subscribers: You can gauge a trader’s trustworthiness based on the number of Deriv copy traders following them. When a lead trader has thousands of subscribers, it suggests that Deriv users have confidence in them.

2. Returns: While past results do not guarantee success in the future, it is still crucial to check a lead trader’s past performance before copying them. A consistent trader is likely to record positive results in the future, thus generating profits for you.

3. Number of trades: Assessing the activity levels of lead traders helps you gauge their expertise. A trader who has closed over a hundred trades, most being profitable, means they trust their strategy.

4. Risk level: What’s your risk tolerance? If it’s low, find a lead trader with a risk score of less than four.

5. Drawdown: Checking a trader’s drawdown (reduction in trading capital after closing losing trades) gives you a clear picture of their risk management techniques. Avoid traders with high drawdowns, as they could cause you to lose copy trading capital.

Costs of Copy Trading on Deriv

Deriv copy trading service is free, but as mentioned earlier, lead traders take a cut from every profitable copied trade.

Is Copy Trading on Deriv Safe?

Yes! Deriv has operated as a regulated broker for the past two decades, assuring copy traders of their safety. The brokerage firm holds licenses from Malaysia’s LFSA, Malta’s MFSA, Vanuatu’s VFSC, and the British Virgin Islands’ FSC.