How To Trade Synthetic Indices On MT5 📈(Updated 2024)

Trading synthetic indices on has gained immense popularity among traders looking for alternatives to traditional financial markets. Synthetic indices, offered by Deriv, provide a unique trading experience as they are not affected by real-world events and have consistent volatility. In this post, I will share my insights on how to trade synthetic indices on MT5, drawing from my extensive experience since 2016.

What Are Synthetic Indices?

Synthetic indices are simulated markets that mirror the volatility of real financial markets but are entirely free from real-world disruptions. They include various instruments such as Volatility Indices, Crash and Boom Indices, and Step Indices. These indices are available 24/7, providing flexibility for traders.

Why Trade Synthetic Indices on MT5?

MT5 (MetaTrader 5) is a powerful trading platform that offers advanced charting tools, multiple order types, and automated trading capabilities. It is an ideal platform for trading synthetic indices due to its robust features and user-friendly interface.

Additionally, the platform is accessible on PC, mobile, and even through Webtrader, providing unparalleled convenience to clients.

How to Trade Synthetic Indices on MT5 Step-By-Step

Opening an MT5 synthetic indices account with Deriv is a straightforward process. Follow these steps to get started:

Step 1: Visit the Deriv Website:

Go to the official Deriv MT5 sign-up page here.

Step 2: Sign Up

Click on the ‘Create free demo account' button on the page.
You can sign up using your email address or your Google or Facebook account for quicker registration.

Agree to the terms and conditions and click ‘Create free demo account‘.

Step 3: Verify Your Email:

After signing up, you will receive a verification email. Click on the link in the email to verify your address.

Step 4: Complete Your Profile

Once your email is verified, log in to your new account and complete your profile by providing the required personal information, such as your name, date of birth, and address. 

Also, set your preffered account base currency.

Step 5: Verify Your Identity

For security purposes, Deriv requires you to upload documents to verify your identity and address. This could include a government-issued ID (like a passport or driver’s license) and a utility bill or bank statement. You can choose to verify the account later if you don't have the document at hand.

Get step-by-step instructions on how to verify a Deriv account here.

Step 6: Open a Synthetic Indices Account

Click on the (1) ”Trader's Hub option” on the top left of your dashboard. Then click (2) ‘Real‘ > (3) ‘CFD's‘.

Then choose the Deriv Standard Account. This account gives you access to synthetic indices and forex CFDs. It used to be called the Deriv synthetic indices or Derived account. You can learn more about this account in this review.

Choose the jurisdiction for your account.

Afterwards, you will be prompted to set a password for your real Deriv MT5 synthetic indices account. This password is exclusively for logging into your trading account on Deriv Metatrader 5 and is separate from your main Deriv account password.

After creating your account you will be prompted to transfer funds from your main Deriv account to your DMT5 synthetic indices account.

Step 7: Download MT5 & login (Deriv MT5 Download)

After completing Deriv real account registration mt5 you will see the Deriv standard account listed with your login ID.

You will also get an email with your login ID that you will use to log in to the Deriv Synthetic account.

You need to connect Deriv to mt5 to trade synthetic indices on that platform. Do the Deriv mt5 download and get the application for your device. Log in using your Deriv MT5 account credentials to get started. There are step-by-step instructions to do this below.

Step 8:  Add Synthetic Indices on MT5

Once logged in, you can find synthetic indices in the ‘Market Watch' window. Right-click and select ‘Show All' to display all available instruments. Look for indices like Volatility 75 Index, Boom 500 Index, and others. You can get step-by-step instructions on how to to add the indices to MT5 below.

Step 9: Start Trading

Utilize the advanced charting tools available on MT5 to analyze the market. You can apply technical indicators, draw trend lines, and use various time frames to understand market movements. These features help you to make informed trading decisions and identify potential opportunities.

Once you have identified a trading opportunity, right-click on the chart or use the ‘New Order' button to place your trade. You can set your desired lot size, stop loss, and take profit levels.

Monitor and manage your trades by keeping an eye on your open positions and adjusting them as needed. MT5 provides tools to modify or close your trades with ease, ensuring you maintain control over your trading activities.

How to Link Deriv Account to mt5 On Mobile

To connect Deriv to mt5 on your mobile application to the Deriv server, follow these instructions:

• Tap ‘Setting’ in the bottom right corner on iOS or 3 lines in the top left corner on Android devices.
• Select ‘Log in to New account’ on iOS or tap ‘+’ on Android devices.
• Select or type in ‘Deriv Limited’ from the broker’s list.
• Choose server by typing Deriv-Server
• Enter your DMT5 credentials. These are the account ID for your Deriv Standard account and your chosen password.

Make sure you type these correctly during the login Deriv on mt5 process because if you make mistakes you will not be able to trade synthetic indices on mt5.

How To Connect Deriv To MT5 Account On Desktop

To link the Deriv account to mt5 on desktop follow these instructions:

• Click on the “File” tab in the upper left corner of your screen.
  
• Click the ‘Login to Trade Account” section
  
• Enter the account ID for your Synthetic Indices account
  Server: Deriv-Server
  Password: Enter the DMT5 synthetic indices password you created during the account setup process.

Make sure you type these correctly during the Deriv mt5 login process because if you make mistakes, you cannot trade synthetic indices on mt5.

After successfully connecting to your Deriv Metatrader 5 account you will see several synthetic indices listed. Click on any synthetic index to see its chart.

How To Add Synthetic Indices to MT5 Mobile

Step 1: Open MT5 App & Login to your Account

• Log in to your existing account using your credentials as explained above.

Step 2: Go to the Quotes section

• Locate the “Quotes” window on the bottom left side of the main MT5 interface.

Step 3: Search for the Synthetic Index you want to add

• Click on the search field at the top of the app
• A new drop-down window will appear showing all the financial instruments you can add to your watchlist.
• Click the option you want e.g ‘Volatility Indices‘

Step 4: Add the Volatility Index to Market Watch

• A list with all the volatility indices that you can add will be displayed
• Click the green (+) sign next to the volatility index you want to add

Step 5: Open a New Chart

• Go back to the quotes window and you will see the volatility index that you have just added listed at the bottom of the watch list
• Click on it and then click on ”Chart”. The chart window for the index will then be displayed

Step 6: Customize Your Chart

• Once the chart window is open, you can customize it by adding indicators, adjusting time frames, and utilizing other tools available on MT5. This allows you to tailor the chart to your trading strategy and preferences, enhancing your analysis and decision-making process.

Step 7: Start Trading

• Start trading by clicking on either buy or sell on the top left of the chart. The direction of your trade will depend on your analysis.

How To Add Synthetic Indices to MT5 on PC

Step 1: Open MT5 Platform & Log In to our account

• Launch the MetaTrader 5 application on your computer and log in to your existing account using your credentials as explained above.

Step 2: Go to Market Watch

• Locate the “Market Watch” window on the left-hand side of the main MT5 interface. If the window is unavailable you can open it using the keyboard shortcut Cntrl + M or by clicking View> Market Watch.

Step 3: Search for the Synthetic Index

• Right-click anywhere within the “Market Watch” window and choose “Symbols” from the context menu. You can also use the shortcut Cntrl+U.
• Click on any type of indices you want to add e.g ”Volatility Indices” in the window that appears. A list of available indices will be displayed.

Step 4: Add the Volatility Index to Market Watch

• Find the index you want in the ”Symbols” window and double-click on it to add it to the market watchlist.

Step 5: Open a New Chart

• Find the Volatility Index you want in the watch list, right-click on it and select “Chart Window.”

Step 6: Customize Your Chart

• Customize the chart window by adding indicators, time frames, and other tools available on MT5. This allows you to tailor the chart to your trading strategy and preferences, enhancing your analysis and decision-making process.

Step 8: Start Trading

• Start trading by clicking either buy or sell on the top left of the chart. The direction of your trade will depend on your analysis.

How to Place Trades On Synthetic Indices on Deriv MT5

Step 1: Choose the Synthetic Index You want to trade

Click on the synthetic index you would like to trade from the list under the ‘Quotes‘ tab on mobile or in the ”Market Watch” on PC.

Step 2: Open the chart of the synthetic index

On mobile, a list will appear and you must click on ”Chart”.

On PC right click on the index in the Market Watch and click on ”Chart Window”.

Step 3: Customise the trade parameters

On mobile, click on the box in the top right corner to bring up the trade options. On PC click on the button at the top left.

Select your preferred lot size. Remember different synthetic indices have different minimum lot sizes.

Choosing the wrong lot sizes may blow your account if you have inadequate equity.

Next, choose your trade direction either buy or sell and click on the correct option. Your trade will then start running.

If you click on the ‘Trade' button at the bottom of the screen you will see your current equity, profit/loss of your running trades and your margin level.

You can also close your trade at any time by clicking the “Close” button next to the open position.

You can check out these strategies to help you become profitable.

My Experience with Synthetic Indices

Having traded synthetic indices on Deriv since 2016, I have witnessed the evolution of these instruments and the platform itself. My journey started with curiosity, exploring how these indices function and how they differ from traditional markets.

Over the years, I have developed strategies that capitalize on the consistent volatility and 24/7 availability of synthetic indices.

I encourage you to practice strict risk management when trading these indices. It is a good idea to practice on a demo Deriv synthetic indices account first before you risk real money.

Frequently asked questions on How To Trade Synthetic Indices On Deriv MT5