How does Deriv earn money? – Explanation for traders

Knowing how your broker earns money is essential to planning your moves. A smart trader would keep an eye on the earning methods of the broker also. Of course, your aim should be to earn money for yourself. However, when you know the ways your broker earns its profit, you can align your trading moves accordingly. 

But, knowing how it earns money before choosing any broker is essential. So, let us find out how Deriv earns money and then decide why this broker is good for you.

How does Deriv earn money?

Deriv is a broker that has been in the industry since 1999, offering the best services to its clients. However, it is natural for any trader to grow curious about how the broker earns money. A trader has the open opportunity to earn while placing the bets. They can choose the assets of their choice and predict the rise or fall in their prices to earn. However, when it is about the broker’s earnings, they have to do it separately.

The usual source of a broker like Deriv’s income is through fees and commissions. Many brokers depend solely on the commissions and fees they charge. Every time a trader executes a trade and wins it, the broker’s charge applies. It can also be in various other forms such as withdrawal, swapping, etc.

Moreover, knowing whether your broker earns through illegal means or not is also important. What if you are a part of a scam? That can lead you to trouble. Moreover, if your broker hides its earning process, that is not a trustworthy broker. How can you trust a broker that does not even reveal how it earns money? 

The recent rise in binary options trading is proof that there are multiple ways to earn money. It is the most legal way to earn and multiply your wealth quickly. But that may be seldom true for the brokers. If your broker has hidden earnings, that may be coming from illegal sources.

However, you are in the right hands if you choose Deriv as your broker.

The brokers can charge various amounts depending on the account and asset types. However, the most commonly incurring ones are spreads, trading fees, withdrawal fees, etc. However, there can be many additional fees, such as deposit fees, inactivity fees, etc. Deriv also follows the usual ways to earn.

However, various other brokers prefer to use the marking-up process in addition to their charges. In that process, they mark up the prices allowed. Others do not even stay behind in counter-betting. They do that to ensure the safety of their funds even when the trader loses. They bet against what the trader is going for. So, if the trader loses, they can compensate for their losses.

Deriv earnings

Deriv is a broker that does not keep hidden charges and commissions. It mainly earns through spreads and some other fees. Unlike other brokers, who even try their hand in cross-betting, Deriv does not initiate any such unethical ways of earning. Though it charges certain fees, the amount is usually lower than other counterparts. So let us now view the various ways of its earning.

Deriv spread: A spread represents nothing but the difference between two prices. It is basically the difference between the bidding and asking prices. These are usually measured in percentages in points. That is why many brokers denote spreads in pips. 

The spread at Deriv starts at 0.1 pips EUR/USD. However, you cannot view the full list of spreads unless you open an account, either demo or the real trading account.

Account opening fees

Deriv does not charge any account opening fees. So you can begin trading by depositing any amount you wish to. However, it should be more than the minimum deposit, which can be anywhere between 0$-$15.

Deposit fees

There would not be any fees for depositing your funds with Deriv. 

Withdrawal fees

The withdrawal process of Deriv is also charge-free, and it does not earn any amount from your deposits.

Swap fees

Swap fees occur when you keep on holding the same position in a trade. It arises when you keep it beyond the set time limit. If any trader holds a position more than the set duration with Deriv, she might have to bear the swap fees. However, it is not a mandatory fee and occurs purely depending on your conduct.

Inactivity fees

Deriv earns mostly through the spreads. It will not ask you to pay while withdrawing or depositing. However, you may have to pay an inactivity fee if you stop using the account. We cannot call the inactivity fee a way to earn money. That is because it occurs conditionally when you keep your account dormant for more than 12 months straight Deriv charges a fee of $25. It applies only if you have not placed even a single trade during that entire period.

About Deriv

Deriv started serving under the name of and has gained millions of investors globally as its customers. However, now it provides its clients with various technological innovations under its name ‘Deriv.’ 

A trader can use features such as DerivGo, DTrader, DerivX, etc., among many of its proprietary features. It offers the choice of multiple assets that range from stocks, currencies, and even commodities. Deriv’s customer base is wide and spreads across the globe. It has customers from Australia, Thailand, South Africa, the UK, Germany, etc.

It offers a free demo account before beginning with the actual trades. So, you can test its features and practice before dealing with actual funds. Deriv also stays ahead of its competitors in offering different payment systems. It even accepts Fiat-on ramp and crypto-wallets.


Earning money is a common need for both traders and brokers. However, not all brokers have a clean way of earning. Some even get involved in cross-betting and marking up. Some brokers may charge additional fees every time a trade wins a trade, whereas others may keep withdrawal and deposit fees. Deriv is a broker who keeps all its fees at the lowest possible range. Moreover, it does not earn through your deposits and withdrawals, making it a reliable broker.

About the author

I am an experienced Binary Options trader for more than 10 years. Mainly, I trade 60 second-trades at a very high hit rate.

Write a comment

What to read next