In this comparison, we will discuss the crucial similarities and differences between Deriv vs. Binomo, including their platform, trading conditions, and customer service. Furthermore, we will also explore the pros and cons of choosing one over the other to eventually help you decide which broker is better suited for your personal use case.
Deriv vs. Binomo: Facts, Similarities, and Differences Table
| Criteria | Deriv | Binomo |
|---|---|---|
| 1. Background | Deriv was founded in 1999 in Saint Vincent and the Grenadines, a small island in the Caribbean. It has been operating for 25 years. | Unlike Deriv, Binomo was founded in Saint Vincent and the Grenadines in 2014, 15 years after Deriv. |
| 2. Regulation | Deriv is primarily regulated by “The Financial Commission,” a neutral and independent dispute resolution organization specializing in financial markets. Moreover, it is also regulated by several entities around the world, including:- the Malta Financial Services Authority (MFSA);- the Labuan Financial Services Authority (Labuan FSA);- the Vanuatu Financial Services Commission (VFSC) and;- the British Virgin Islands Financial Services Commission. | Binomo is also regulated by “The Financial Commission.” Moreover, it has been a category “A” member — the highest membership category. |
| 3. Minimum Deposit | $5 (US dollar) or its equivalent in your local currency. | $10 (US dollar) or its equivalent in your local currency. |
| 4. Minimum Trade Amount | You can trade as low as $0.35 on their synthetic indices. However, for other individual assets, the minimum is $1. | You can trade as low as $1 on your selected asset. |
| 5. Minimum Withdrawal | You need at least $5 per withdrawal transaction for e-wallet and bank wire transfers and $10 for credit and debit cards. | You need at least $10 per withdrawal transaction. |
| 6. Return / Payout Ratio | The payout ratio is more variable depending on the derivative, but it can go as high as 90% depending on the individual asset. | The payout ratio ranges from 30% to 90%, depending on the asset. |
| 7. Assets | The asset classes available for trading include crypto, forex pairs, equities (stocks, indices, and ETFs), and commodities. Deriv also offers “synthetic indices,” unique to Deriv, that simulate real-world market movements and are available 24/7. | The asset classes available for trading include crypto, forex pairs, equities (stocks, indices, and ETFs), and commodities. |
| 8. Trading Platform | Minimalistic user interface with real-time continuous (second by second) price movement. | Simple chart layout, with more of an “old school” user interface and static price changes. |
| 9. OTC Trading | Deriv offers OTC assets that can be traded during off-market hours. | Binomo also offers OTC assets that can be traded during off-market hours. |
| 10. Customer Support Channels | Deriv offers customer support via Email, Chat, Phone, Contact Form, and Social Media. | Binomo also offers customer support via Email, Chat, Phone, Contact Form, and Social Media. |
| 11. Educational Materials | Deriv has an extensive set of educational materials for all levels with its own website, Deriv Academy: Derive Academy | While offering basic tutorials and strategies, Binomo lacks the same level of educational materials as Deriv. |
| 12. Advanced Trading Tools | Deriv offers one of the most comprehensive sets of advanced trading tools on its various trading platforms. | Binomo offers a broad set of technical indicators and advanced technical analysis tools. Yet, not on the same level as Deriv. |
(Risk warning: Trading involves risks)
Pros and Cons – Deriv
- Track Record: Deriv has been operating for 25 years. It now has a user base of more than 2.5 million and an average monthly volume of $650 billion.
- Platform Reliability: Deriv boasts a 99.97% platform uptime, ensuring a relatively uninterrupted trading session.
- Highly Regulated: Deriv is regulated by five different regulatory bodies worldwide, which testifies to its commitment to safeguarding its users’ assets.
- Complexity: Deriv is relatively more complex due to the sheer number of its offerings and platforms available compared to other brokers.
- Customer Support Issues: According to some users and reviews, there have been instances of slow responses or unsatisfactory support experiences.
- Synthetic Market Limitations: Despite their unique use case, synthetic markets are generated by algorithms and thus do not reflect real economic events, news, or the supply and demand dynamics that drive traditional markets.
(Risk warning: Trading involves risks)
Pros and Cons – Binomo
- Simpler Platform: Binomo’s platform is relatively simpler compared to Deriv’s various different platform offerings, making it easier for beginners to adopt.
- Easier to Familiarize: Due to its simpler platform, Binomo’s trading platform and offerings are easier for beginner and inexperienced traders to learn and familiarize themselves with.
- Focused Asset Offering: Binomo offers a focused set of assets under its available asset classes, helping beginners to narrow down and master a specific asset class or set of individual assets.
- Lower Ceiling for Experienced and Advanced Traders: Because of its simpler platform, many experienced and advanced traders may find Binomo’s offerings limiting (lower ceiling for trading growth) compared to Deriv’s.
- Less Track Record: Binomo has only been operating for about 10 years (compared to Deriv’s 25 years), and its user base has not reached 1 million yet. In addition, Binomo is regulated by only one regulating body.
- Limited Asset Options: Binomo has fewer individual asset options and does not offer synthetic assets. This can potentially limit experienced to advanced traders looking for more trade opportunities.
Trading Conditions
When comparing the two brokers head-on, we can see that Binomo’s trading offerings are geared towards traders who prefer a simpler trading setup and a faster trading learning curve. On the other hand, Deriv’s suite of trading tools, assets, markets, and platforms offers flexibility and a massive number of options for traders. However, this can inadvertently cause traders — particularly inexperienced or beginners — to be overwhelmed by the number of options presented to them.
Platform
In terms of their trading platforms, Binomo offers a simple trading platform with more of an “old school” user interface and static price changes. On the other hand, Deriv has a suite of different and unique platforms, namely: Deriv MT5, Deriv X, Deriv cTrader, Deriv GO, Deriv Trader, SmartTrader, Deriv Bot, and Binary Bot.
Customer Support
Both Deriv and Binomo offer customer support via Email, Chat, Phone, Contact Form, and Social Media. However, based on reviews and user testimonials, Deriv generally receives higher ratings for the efficiency and helpfulness of its customer support team. It also has quicker response times in general. Additionally, its users highlight its ability to handle complex inquiries effectively. In contrast, Binomo has more inconsistent experiences from its user base.
Conclusion
Overall, if you are looking for a simpler trading platform with focused asset offerings and a relatively much easier learning curve, then Binomo might be right for you. On the other hand, if you are looking for the maximum number of options you can have (in terms of the number of assets you can trade, trading tools, and platforms), then Deriv has a wider suite of offerings that can accommodate you. Furthermore, it also has a longer track record and higher liquidity than Binomo.
(Risk warning: Trading involves risks)
Most Asked Questions:
What are the minimum deposits for Binomo and Deriv?
The minimum deposit for Binomo is $10 (or its equivalent in your local currency). Meanwhile, Deriv requires a lower minimum deposit of $5 (or its equivalent in your local currency).
What is the minimum withdrawal amount for Binomo and Deriv?
Binomo requires a minimum withdrawal of $10 (or its equivalent in your local currency) per transaction. On the other hand, Deriv only requires $5 (or its equivalent in your local currency) per withdrawal transaction for e-wallet and bank wire transfers and $10 (or its equivalent in your local currency) for credit and debit cards.
Do Binomo and Deriv have an Over-the-Counter (OTC) facility?
Yes, both Binomo and Deriv offer assets on their respective OTC markets that can be traded during off-market hours.
Are Binomo and Deriv regulated?
Yes, both Binomo and Deriv are regulated by “The Financial Commission,” a neutral, self-regulatory, and independent dispute resolution organization specializing in financial markets. Furthermore, Deriv is also regulated by four more regulating bodies: the Malta Financial Services Authority (MFSA), the Labuan Financial Services Authority (Labuan FSA), the Vanuatu Financial Services Commission (VFSC), and the British Virgin Islands Financial Services Commission.
What are Deriv’s synthetic indices?
Deriv’s synthetic indices simulate real-world market movements and are available 24/7. However, because synthetic markets are simulated (generated by algorithms), they do not reflect real economic events, news, or the supply and demand dynamics that drive traditional markets. In addition, the behavior of Deriv’s synthetic indices is determined by its proprietary algorithms.
