Synthetic Indices 2026 — Complete Guide to Trading Simulated Markets on Deriv

What Are Synthetic Indices?

If you're new to this, let me break it down for you real quick.

Synthetic indices are simulated markets that mimic real-world market conditions. They are generated using a cryptographically secure random number generator that has been audited for fairness by an independent third party. These indices have been around for over 10 years now, and they are exclusively available on Deriv (formerly Binary.com).

What makes synthetic indices special? They are not affected by real-world events. That means when there's a war, a pandemic, or some crazy news event happening — synthetic indices keep doing their own thing. The market runs 24/7, 365 days a year, including weekends and holidays.

Why Trade Synthetic Indices?

There are some serious advantages to trading synthetic indices, and this is why so many South African traders (and traders from all over the world) are getting into these markets:

  • Available 24/7/365 — You can trade any time of the day, any day of the year. No waiting for markets to open.
  • High leverage and tight spreads — Deriv offers leverage of up to 1:1000 on some synthetic indices.
  • Not affected by news or world events — Your stop loss won't get hunted by an NFP release or some unexpected tweet from a president.
  • Audited for fairness — An independent third party audits the RNG (Random Number Generator) to ensure it's completely random and not manipulated.

How to Get Started (Step-by-Step)

Step 1: Open a Deriv Account

First things first, you need to sign up for a free Deriv account. Click here to open your account. You can start with a demo account to practice before you put in real money.

Step 2: Add a Deriv MT5 (DMT5) Synthetic Account

Once you are logged into your Deriv dashboard, you need to add a Deriv MT5 (DMT5) Synthetic account. This will give you the login details (ID and password) to connect to the MetaTrader 5 platform.

Step 3: Download MT5 and Log In

Download MT5 on your phone or PC, select “Deriv Holdings (Europe) Limited” as your broker, and enter your synthetic account login details. Choose the “Deriv-Demo” server for demo trading or “Deriv-Server” for live trading.

Managing Risk Like a Pro

Because synthetic indices offer high leverage, you need to be extremely careful with your lot sizes. If you go too big, you will blow your account in seconds. Always use the correct lot size for your account balance and never trade without a stop loss.