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Forex or Synthetic Indices: Which Fits You?
Forex trading follows real currency pairs, moved by interest rates, inflation and central bank decisions. Synthetic indices are simulated instruments generated by a cryptographically secure random number generator, so they mirror market-style movement without reacting to real-world news.
You do not have to choose one or the other to get started. Both products sit on the same Deriv account, so you can compare how each one behaves and decide where your attention belongs.
One account, two markets
Deriv has operated since 1999 and serves customers in more than 150 countries from its holding company base in Guernsey. Synthetic indices and forex are both available to trade from the same platform, and our 24/7 live chat can help you understand either one before you deposit.
Forex and synthetic indices, compared side by side
Both are traded on one Deriv account, but they behave very differently. Forex prices move with the real economy, while synthetic indices are generated by a random number generator and run around the clock. Here is how the two compare on the points that matter most when you choose where to trade.
- Market hours. Forex trades 24 hours a day, five days a week. Synthetic indices, including weekends and public holidays, run 24/7.
- What drives prices. Forex reacts to interest rates, inflation, geopolitical events and central bank decisions. Synthetic indices are driven by a cryptographically secure random number generator.
- News sensitivity. Forex moves on economic news. Synthetic indices are not affected by real-world news or market volatility.
- Leverage. Both offer leverage up to 1:1000 on selected instruments. Leverage magnifies gains and losses alike.
- Available instruments. Deriv lists more than 50 forex pairs and 99 synthetic indices, including Volatility, Boom, Crash and Step indices.
Understanding the risk before you trade
Forex and CFDs on Deriv are offered with leverage of up to 1:1000 on selected instruments. Leverage lets you control a larger position with a smaller deposit, which means it magnifies gains and losses in the same way. A small move against you can cost more than the amount you put in, so it pays to size positions with that in mind.
CFDs are complex instruments. They carry a high risk of losing money rapidly. Before you open a position, ask yourself whether you understand how the product works and whether you can afford to take that risk. If the answer is not yet clear, a free demo account lets you learn the mechanics of the platform without depositing money.
Whether you can afford to take that risk is a decision only you can make.
Deriv has operated since 1999, and its holding company, Deriv.com Limited, is registered in Guernsey. Read the Terms and Conditions and the Risk Disclosure in full before trading. For guidance on keeping your trading within your limits, see the secure and responsible trading resources linked in the footer. Nothing on this site is investment advice, and past performance does not guarantee future results.
To see how synthetic indices differ from real-market CFDs in practice, read our synthetic indices guide.
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