Deriv SmartTrader Review

Deriv SmartTrader Review | A Guide For Traders

Trade From A Minimum Stake Of $0.35

  •  Time: 1s - 365 Days
  •  Minimum Stake: $0.35
  •  Payout Up To: 200%+
  •  Synthetic Indices
  •  Lookbacks
  •  Minimum Deposit: $5
User Friendly Platform With Payouts Up To 200%+

Deriv SmartTrader Review

SmartTrader was Binary.com's flagship platform. Binary.com has rebranded and moved to Deriv, and taken SmartTrader with it. SmartTrader supports trading on real and simulated markets (some types of markets may not be available in some countries). SmartTrader is not a platform for trading in a traditional way on margin, rather it is for trading on trade types based around options and multiplier trade types. In multipliers (Lookbacks), the trader can set a multiplier of the difference defining the outcome of the trade. Options trade types format a trade so the trader may choose an outcome (e.g. Rise or Fall). The trader may test out the platform on a demo account: Deriv Sign-Up

What is the minimum deposit ?

The minimum deposit to use SmartTrader on Deriv is $5, but some payment methods can have a higher minimum deposit.

Where is SmartTrader ?

On Deriv, SmartTrader is included as part of its intuitive suite of trading platforms. The centerpiece of this platform is a platform called Deriv Trader (i.e. it is the first platform upon login to Deriv).

Deriv Trader has similarities with SmartTrader and there is a Deriv Trader review. However SmartTrader contains more options trade types while Deriv Trader now offers Vanilla Options trading, Turbos (which payout if the trade stays within barriers) and Accumulators (which compound growth of the invested stake if the trade stays within barriers).

With Deriv, the trader can switch between different types of platform in a more intuitive way. For example they can trade CFDs on real and simulated markets and on margin on MT5, create robots using drag and drop (no coding) on DBot, as well as use user friendly Deriv eriv Trader.

What are simulated markets ?

Simulated markets are not real markets and use an algorithm to generate charting data. They simulate different types of market conditions, for example different levels of Volatility and Bull and Bear market types. So unlike real markets, the trader can pick these kinds of market conditions and then apply trade types to them. Real markets are traded however as CFDs (like simulated markets). When a trading a CFD, the trader does not own the market being traded.

The simulated markets are found on the drop down menu near the top left of the platform, under 'Synthetics'. The trader will find three types of simulated markets, namely Daily Reset Indices, Jump Indices and Continuous Indices. The Continuous Indices contain Volatility Indices. Volatility Indices come with different volatility levels and in some cases rate at which they update.

After the tag Volatility is a number (for example Volatility 10). This number donates the level of volatility. The higher the number, the greater the volatility. For some Indices there is this tag at the end (1s). (1s) donates that the Index updated every 1 second, otherwise they update every 2 seconds.

The Daily Reset Indices simulate a Bear (falling) market (the Bear Market Index) and a Bull (rising) market (the Bull Market Index). The Jump Indices simulate price jumps in markets. The Synthetics plus Forex, Indices, Commodities and Baskets constitute the markets which is the target of a trade type.

Synthetics and Baskets are classed as 'Derived'. Baskets are baskets of Indices based around Forex or Gold. When a market is selected, the trader then chooses the trade type. Different markets can have a different range of trade types available.

What are the trade types ?

The trade types format the trade so the trader can choose a time for the trade and an outcome. Trading on simulated markets has the most trade types. Furthermore, while CFDs on real markets are open during the market hours for the underlying, simulated markets are open 24/7 (i.e. on weekends as well).

The most trade types however are offered on the Continuous Indices (composed of Volatility Indices). The Bull and Bear Market Indices provide Up & Down, Touch/No Touch, In/Out and Digits (these are similar to the trade types offered for all markets on Deriv Trader). However on SmartTrader, more trade types are available for Volatility Indices. In addition to these, Indices, Asians, Lookbacks, Reset Call/Reset Put, High/Low Ticks and Only Ups/Only Downs are offered.

The Jump Indices are limited to Up/Down and Digits trade types. However within each trade type can multiple choices, for example Digits has three formats (Matches/Differ, Even/Odd, Over/Under).

So to find the most trade types at Deriv, the trader may look for SmartTrader Volatility Indices. To find the most simulated markets to trade however, the trader needs to open an MT5 Synthetic account or a cTrader account. These accounts are found from the 'Trader's Hub', which is dedicated to CFDs on margin.

The trade types on SmartTrader use options formats or multipliers. An example of a multiplier is Lookbacks. Here the trader can trade based on the difference between the High and Close during the duration of the contract. The trader sets a multiplier for this difference, which defines the payout. The trade can be successful, in what case the trader receives the difference times the multiplier (if the difference is positive) or unsuccessful (if the difference is negative), in which case they lose the stake. As is typical with the trade types, there are actually a number of ways to trade Lookbacks. As well as the difference between High and Close, the trader may choose Close-Low or High-Low.

An example of an option trade type is Asians. Asians only has one trade type and it compares the last tick with the average spot over the period. This sets up two outcomes, which the trader speculates on by choosing one to create the trade. Asian Up is successful if the last tick is higher than the average of the spot and Asian Down is successful if the average spot is lower than the average spot. If the last tick is equal to the average, there is no payout and no loss of stake. Asians like other options types, has a payout or return given which is shown on the platform.

If the trade is successful the trader receives the stake plus this percentage return, if unsuccessful the trader loses the stake. Payout rates for trade types vary, but can be less than 100% or considerably more.

With each trade type there is an explanation given on the platform and the trader should read this and understand how the contract works before trading. The trader may switch from virtual to real trading and back, thus they can work out how the contract works using a virtual account first, without risking real money.

What is the minimum deposit and trade size ?

The minimum deposit is generally $5. The minimum trade size is a very low $0.35 for simulated markets (the Synthetics). The trader may also deposit larger sums and also trade with larger trade sizes.

What time frames are offered ?

Time frames depend on the trade types, some have trades from 1 tick (around 1 second), other longer trade times, with a maximum of 365 days. For example Rise Fall can be set from 1 tick to 365 days, Asians can be set from 5 ticks to 10 ticks.

Why SmartTrader ?

SmartTrader was Binary.com's flagship platform. Binary.com has rebranded and moved to Deriv, but this also contains SmartTrader. SmartTrader offers the most ways currently to trade options. SmartTrader is available across the globe, but some regions have restrictions on what may be traded.

SmartTrader is for those who want to trade options and multiplier trade types, with fixed time trades from 1 second to 1 year and with the capacity to select a wide range of trade types.

Payouts can range from less than 100% to greater than 200%, for successful trades. In some cases the payout can be significantly higher than 200%, but the higher the payout the greater tends to be the risk. When signing up, the trader will be given a demo account, which can be used to practice trading these markets and trade types.