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Deriv synthetics: an honest, verifiable guide
‘Deriv synthetics’ are the synthetic indices offered by the broker Deriv: instruments created by the platform itself that do not replicate any real asset (neither currencies, nor stock indices, nor commodities). Their price is generated by an algorithm with volatility parameters defined by the broker, they are traded 24/7 and their counterparty is always the entity itself. Before opening an account, the useful thing is not to compare promises of returns but to verify which legal entity is serving you, what licence it holds and what conditions apply to your deposit and withdrawal.
How to verify an entity (without opinions)
Which regulator and which entity serves you
A trade name is not a legal entity. Deriv operates through several different companies depending on the region, and the one serving you appears in the client agreement, on the site footer and in your account documentation. The company's full name, its registered address and its licence number must appear there.
The specific step is this: you take that number, go to the public register of the regulator that supervises it and check that the entity exists, that the licence is valid and what activities it permits. If the number does not appear or the company does not match the one in the contract, do not continue.
Bear in mind what each regulator means. A licence from an offshore jurisdiction is not equivalent to supervision by a European regulator, and it does not give you access to deposit guarantee funds. The fact that the entity is legal does not mean that your country authorises it to solicit clients. In practice, for synthetics almost all the brokers operating in Latin America work with offshore licences.
The real catalogue of synthetics
The catalogue is limited and very specific: there are not hundreds of assets. The main ones are the volatility indices, the jump indices, the Step Index, the Crash/Boom, the Range Break and the DEX. Each one has a different behaviour and that matters more than the name.
| Index | Behaviour | What it means when trading |
|---|---|---|
| Volatility 10 / 25 / 50 / 75 / 100 | Constant, defined volatility (10 = 10% annualised) | Gentle trends on the 10, large moves on the 100 |
| Volatility 10-100 (1s) | Same as the previous ones, with a price every second | More noise and more entries per minute |
| Step Index | It moves in fixed steps | Stepped movements, useful for studying execution |
| Jump 10 / 25 / 50 / 75 / 100 | Discrete jumps within the series | Gaps that can jump past the stop |
| Crash 300 / 500 / 1000 · Boom 300 / 500 / 1000 | Sharp falls or rises with a predominant trend | Sweep risk in the direction of the spike |
| Range Break 100 / 200 | Oscillates and breaks ranges | Frequent regime changes |
| DEX 600 / 900 / 1500 | Series with their own volatility | Less perceived liquidity, spreads to review |
Check on the platform that each index on the list actually exists and what its trading hours are. If a broker advertises “dozens of synthetics” without naming them, it is probably reselling someone else's catalogue.
Costs and execution
With synthetics, the usual cost is the spread, and on some products there is an explicit commission or an overnight financing cost if you hold positions. There is no external market to look at: the broker is the counterparty, sets the price and executes against its own book. This has two practical consequences: the spread can widen at times of higher activity, and counterparty risk is real (if the entity goes bankrupt, your balance depends on it, not on a guarantee fund).
Before trading, review the average spread of the indices you are interested in, the minimum contract size and the maximum leverage your entity assigns you. High leverage does not improve the result: it only means that a small move against you consumes more margin.
What changes depending on the country
The availability of a synthetic indices broker depends less on the product than on local regulations and payment methods.
Argentina. The CNV regulates the securities market, not these contracts. Synthetic brokers in Argentina that advertise themselves usually operate with offshore licences and charge in dollars or crypto. Check how the transaction is declared, what exchange rate the platform applies and whether it accepts local transfers or only wallets and digital assets.
Colombia. The Superintendencia Financiera does not authorise these products, so a synthetic broker in Colombia still operates from abroad. The key lies in payment traceability: local methods, ownership of the receiving account and receipts. If the deposit is in a person's name rather than the entity's, it is a warning sign.
Costa Rica. SUGEF does not supervise OTC derivatives brokers, so a synthetic indices broker in Costa Rica relies on the licence from its country of origin. Confirm the contracting entity and the tax treatment of your withdrawals with a local professional.
In all three cases, the catalogue of synthetics is usually the same; what changes is the entity that onboards you, the payment methods and the tax obligations.
Account, deposit and withdrawal: what to check
- Account. Start on demo with the same index and the same size you would use on live. When moving to live, verify that the account name matches your document and that the contracting entity is the one you expected. You can see the process at open a Deriv account.
- Minimum deposit. Deriv publishes low minimums, but they vary depending on the payment method and the entity. Do not take it for granted: check it in your entity's details before transferring, because a minimum of 5 dollars for one method may be 50 for another.
- Leverage. Check the maximum your entity assigns you and reduce it if you can. With synthetics, movement is continuous and margin liquidations come quickly.
- Withdrawal. Confirm that it is made using the same method as the deposit, the estimated time, the fees and whether there is a minimum trading volume before withdrawing (common when there are bonuses). Make a small test withdrawal in the first month.
Warning signs and what to do
Be suspicious if you are promised specific results, if a “manager” asks to trade on your behalf, if you are pressured to deposit in less than 24 hours or if support only exists on Telegram. Bonuses that make withdrawal conditional, receiving accounts in third-party names and domains that are only a few months old are also red flags.
What to do: do not deposit any more, gather screenshots of the contract and licence number, and verify the entity in the regulator's register. If the site presents itself as regulated and is not, report it to your country's regulator and to that of the jurisdiction it claims to have. Always cross-check the details on synthetic brokers and the comparisons Deriv vs Weltrade y Weltrade vs Deriv before deciding.
Frequently asked questions
What are synthetics in trading?
They are instruments created by the broker itself, whose price does not depend on any real asset. They are generated by an algorithm that applies volatility parameters and are traded against the platform, not on an external market. That means the broker is your counterparty on every trade.
What are synthetic indices in trading?
They are the best-known family of these instruments: series such as Volatility 10-100, Step Index, Jump, Crash/Boom or Range Break, each with a defined behaviour. They are called indices because they are presented as continuous price series, but they do not replicate any stock market index.
What are synthetic indices?
It is the same concept in the plural: products with a price generated by the broker, available 24/7 and with no real underlying asset. Before trading them, it is advisable to identify the legal entity, its regulator and the real cost of entry and exit.
How to trade synthetic indices?
With an account at a broker that offers them, after verifying the entity and its licence. First practise on demo with the same position size, define the leverage and the risk per trade before entering, and make a small test withdrawal to check processing times and commissions. The decision of which index to use depends on its behaviour, not its name.
Choose a broker with data, not opinions
We do not publish rankings or affiliate links: we teach you how to check the entity, the costs and the catalogue before depositing.
Keep reading
- Brokers with synthetic indices: how to choose | Guide
- Deriv vs Weltrade for synthetic indices (2026 data)
- Weltrade vs Deriv: honest and verifiable guide
- How to open an account with Deriv: steps and verification