Deriv Synthetic Indices is a scam.

Dear Traders,

I am trading with deriv since 2018 what I have observed in option trading they play with random volatality which is scam .

When you take positional trade they will show random volatility to make you loose .

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Hi @cardies-absinth-2,

Thank you for taking the time to share your feedback with our community. We are sorry to learn that your experience didn’t meet your expectations.

For over two decades, our company has followed strict standards, maintaining licences from various financial authorities. Our operations are checked regularly by both internal and external auditors, ensuring the integrity and accurate execution of all contracts.

Trading markets are volatile by nature, and while this can create opportunities, it also presents risks. The outcomes of trades can be different from expectations due to this volatility. As a market-based platform, we must clarify that we exercise no influence over clients’ positions, trade placements, or trade outcomes. Our procedures and operations are continuously monitored by independent regulators to ensure transparency and fairness.

We also invite you to review our Risk disclosure, which outlines the inherent risks of trading CFDs and the potential for rapid and significant fluctuations in the market.

To address your specific concerns, we encourage you to forward the trade ID and relevant details in response to the email we sent you. This will enable us to investigate the trade and support you effectively.

Your satisfaction remains our priority. If you have any questions or need help, please do not hesitate to reach out.

Trading is volatile is nature but when you itself decide that Volatility 25 ,50 ,100 then how it cross that one means something is fishy .
Everyone educated and everyone knows how it works.

This chart is completely scam manipulate the volatility to make the loss .

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This time I will email you directly to Malaysia, Mauritius,Malta ,and the EU countries to talk about the manipulation don’t worry let them investigate the things

Trader’s Claim:

“I’ve been trading with Deriv since 2018. In options trading, they manipulate volatility randomly to make traders lose. It’s a scam.”

:magnifying_glass_tilted_left: Step-by-Step Breakdown:

  1. :red_question_mark: Is volatility manipulated randomly?

:small_blue_diamond: In binary/options trading, Deriv uses synthetic indices (like Volatility 10, 25, 75, etc.) that are powered by a Random Number Generator (RNG).
:small_blue_diamond: These are not linked to real-world markets, and the price is determined by mathematical formulas inside Deriv’s servers.

:white_check_mark: Yes, it can feel like the volatility is “random” — but it’s not completely without rules. It’s internally structured randomness, just like a slot machine or game physics.

:pushpin: Conclusion: It’s not traditional market volatility, but it’s not a scam if you know the model.

  1. :red_question_mark: Are traders being made to lose intentionally?

:small_blue_diamond: Traders often feel this because:

Sudden spikes happen near expiry.

Many trades reverse direction seconds before expiry.

“Winning trades” suddenly turn to losses.

:small_blue_diamond: However, these movements:

Happen within milliseconds — so traders must use precise timing.

Are common in high-risk instruments (especially binary options).

Can feel like manipulation, but they’re often just part of the product’s high risk.

:pushpin: Conclusion: Not necessarily intentional loss, but the structure is designed to be difficult, just like gambling.
This is not illegal, but it is not suitable for positional or long-term trades.

  1. :red_question_mark: Is this truly a scam?

A scam involves hidden deception.

Deriv clearly discloses that:

Synthetic markets are simulated.

Trading is against Deriv (not open markets).

Losses can be fast and frequent.

So if you understand the risks, it’s not a scam — it’s a high-risk game.

:pushpin: Conclusion: Not a legal scam, but many traders feel cheated due to misunderstanding the system.

:white_check_mark: How You Can Respond or Think About This:

Deriv’s options and synthetic indices are not linked to real markets — they are simulated. So yes, the volatility you see isn’t natural, and that’s why it feels manipulated.

However, Deriv doesn’t hide this — they explain it in their documentation. The issue is traders expect real-market logic in a simulated market, and that leads to misunderstanding.

If you want transparency, shift to real Forex or crypto trading with external market brokers (where price is based on real supply/demand, not RNG).

Final Advice for Traders:

Deriv options = high risk, high volatility, simulated markets.

Only suitable for very short-term high-risk trades.

Not recommended for long-term positional trading.

Always read the risk disclosures before trading.

Trading is volatile by nature, but when Deriv itself names an index as Volatility 25, 50, or 100, how can the behavior of that index go beyond what it’s supposed to represent?"

You’re saying:
If Volatility 25 means 25% volatility, and Volatility 100 means 100%, then why does the price movement often behave wildly, beyond expected behavior?

:brain: Let’s Break It Down:

  1. :white_check_mark: What Does Volatility 25/50/100 Mean on Deriv?

On Deriv synthetic indices, the “25”, “50”, “75”, or “100” do not directly represent real market volatility percentages (like 25% VIX).
Instead, they are just labels assigned to a mathematical model.

Deriv explains:

“The volatility indices are generated using a proprietary RNG algorithm, designed to simulate a market with a specific level of volatility.”

:receipt: So:

Volatility 25 → Lower simulated volatility

Volatility 100 → Higher simulated volatility

BUT — the movement is still random, and there’s no cap or strict boundary to limit the candle size or speed of direction change.

  1. :warning: Why It Feels Fishy?

In real markets, volatility usually increases with news, volume, or macroeconomic factors.

In Deriv’s synthetic markets, there’s no real-world input.

So, when price moves violently even in Volatility 25, it breaks your expectation — which feels rigged or unfair.

:pushpin: That’s because it’s not “trading” in the traditional sense. It’s mathematically simulated price action.

  1. So Is It Manipulationâť“

:backhand_index_pointing_right: Technically:

It’s not manipulation by legal definition, because Deriv tells you that prices are generated and not based on real demand/supply.

But practically? Yes — it feels manipulative, because:

You don’t control the price feed.

There’s no volume, no order book, and no transparency.

And Deriv is both market maker and price setter.

This is why you’re not wrong to question it

While I understand your frustration, based on the image you shared, the price action seems consistent with expected market structure for Volatility 25. These are simulated markets and not real supply/demand-driven, so they behave based on RNG models. Losses in binary options — especially with tight barriers and 1-minute expiries — are common and don’t always mean manipulation. However, Deriv should increase transparency about how their volatility models function.

This chart is completely scam; Deriv manipulates volatility to make traders lose.”

:magnifying_glass_tilted_left: What We See in the Chart:

Index: Volatility 25 Index (R_25)

Chart Type: 1-minute candlesticks

Trade Type: Binary Option (“Higher/Lower”)

Barrier: +1.02

Result: PUT option expired — likely lost due to last candle spiking upward.

Visible Pattern: Price shows clear market structure (lower highs, lower lows), not flat-line or erratic RNG.

Time: Around 19:05 UTC, consistent movement downtrend.

:white_check_mark: Breakdown of the Trader’s Claim:

Claim: “They manipulate volatility so you lose. It’s a scam.”

This is a strong accusation. Let’s look at the possible truths and errors in this:

:balance_scale: Reality vs Emotion: Is It Really Manipulated?

Point Evaluation

:chart_increasing: Volatility This is Volatility 25, which means it’s low-volatility simulated index. Even here, normal spikes can occur within a 1-minute timeframe. Nothing in the chart looks unrealistic.
:bullseye: Binary Contract The contract is Higher/Lower with barrier +1.02, meaning price had to close lower than 1.02 pips above entry. These contracts are very sensitive to small price changes, increasing risk.
:brain: Strategy Most likely, the Martingale strategy used (shown at bottom) led to compounding risk. This strategy can easily wipe out balance in just a few bad entries.
:1234: RNG Deriv’s synthetic indices use RNG (random number generator) regulated by a third party (e.g., Gaming Labs). But traders expect human logic behind price — this mismatch causes frustration.
:test_tube: Evidence of Scam? The chart doesn’t show any erratic spikes, data holes, price freezes, or sudden reversals without structure — these would be signs of manipulation. The price moves smoothly in structure here.

Conclusion

:white_check_mark: The trader lost due to high-risk trade on a tight expiry window (1-minute binary) and maybe got frustrated.

:cross_mark: But there’s no hard evidence of manipulation in the chart shown.

It looks like regular market behavior on a simulated instrument with expected volatility.