Deriv questionsUpdated 3 min readBy the FXNOD team
Deriv MT5 vs Deriv Trader: which should you use?
Deriv Trader and Deriv MT5 are for different products. Deriv Trader is Deriv's platform for options, where you pay a stake and cannot lose more than it. Deriv MT5 is MetaTrader 5 for CFDs, where positions are leveraged and losses grow with the price move. Beginners usually find Deriv Trader simpler. MT5 suits traders who want full charting and CFD trading.
Side by side
| Deriv Trader | Deriv MT5 | |
|---|---|---|
| Product | Options and multipliers | CFDs |
| What you risk per trade | A fixed stake | Depends on lot size, leverage and stop |
| Leverage | None in the usual sense | Yes |
| Costs | Built into the payout | Spread, commission on some accounts, swaps |
| Runs in | A browser and Deriv's app | The MT5 terminal, web or app |
| Automation | Deriv Bot, and third-party tools through Deriv's API | Expert advisors |
| Password | Your Deriv login | A separate MT5 password |
| Learning curve | Low | High |
What each is good at
- Deriv Trader: short contracts, digit trades, a known maximum loss on every trade.
- Deriv MT5: holding positions for hours or days, advanced charting, custom indicators and expert advisors.
The risk difference in one example
On Deriv Trader, a Rise/Fall contract with a stake of 5 can lose 5 and no more. On MT5, a position sized carelessly on a volatile index can lose many times that before you react, because the loss follows the price with leverage. The same account balance lasts very differently on the two.
Accounts and funding
An MT5 account sits under your Deriv login but has its own balance and password. Money is transferred between your Deriv Wallet or account and the MT5 account. Deriv's terms note that an MT5 demo may be deleted after 30 days of inactivity and that a dormant real MT5 account can be restricted.
Which should you start with?
| If you | Start with |
|---|---|
| Have never traded | Deriv Trader, on demo |
| Want to automate short contracts | An options bot tool, on demo |
| Want forex or CFDs with charting | MT5 on demo, after learning position sizing |
| Do not yet understand margin | Not MT5 |
Where FXNOD fits
Trade Pilot, Bot Forge and Auto Hub trade options and multipliers on your Deriv account, the same kind of products as Deriv Trader. FXNOD does not connect to Deriv MT5 and does not trade CFDs.
Questions people ask
- Is Deriv MT5 better than Deriv Trader?
- They do different jobs. MT5 is for leveraged CFDs with full charting; Deriv Trader is for options with a fixed stake.
- Can I use the same balance on both?
- The MT5 account has its own balance. You transfer funds between it and your Deriv account.
- Does FXNOD work with MT5?
- No. FXNOD trades options and multipliers on a Deriv account and does not connect to MT5.
Use your Deriv account from FXNOD
FXNOD is an independent terminal for your own Deriv account. You sign in on Deriv's page, your balance stays at Deriv, and you can trade by hand or run a bot. Start on the demo account.
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