How to Open Synthetic Indices Account on MT5

Synthetic indices have become a favorite market among traders, especially those who want a market that runs 24/7 and are also not affected by global events like news releases, interest rate decisions, or geopolitical risks.

These indices (synthetic indices) are computer-generated markets and are designed by brokers like Deriv to simulate real market volatility under fixed conditions.

One of the most important things to consider when trading synthetic indices is volatility. The more volatile an index is, the bigger the price swings, and consequently, the higher the profit/loss potential.

One key advantage of trading synthetic indices is that liquidity is always guaranteed by the broker. This means you can trade both highly volatile and less volatile synthetic indices without worrying about liquidity issues.

In contrast, in the forex market, liquidity depends on actual market participants. Highly volatile currency pairs often have lower liquidity compared to more stable pairs, since not every trader is willing to take on the added risk.

In this blog post, I will show you How to Open Synthetic Indices Account and then show you how to get started trading them either as a CFD on MT5 or as a binary option contract.

Synthetic indices Brokers

Before we get into how to open synthetic indices account, it’s important to introduce you to some of the brokers that offer synthetic indices.

Synthetic indices are broker-proprietary instruments, which means each broker creates their own versions. These instruments may not behave the same way across different brokers, even if they share the same name. We explained this further in our post on the introduction to synthetic indices.

Currently, there are two major brokers that offer synthetic indices: Deriv and Weltrade.

1) Deriv:

Deriv is the first and most popular synthetic indices broker. Established in 1999 as BetOnMarkets.com, it later rebranded to Binary.com and eventually to Deriv.com.

Deriv offers most of the popular synthetic indices instruments, including volatility indices, boom and crash indices, step indices, jump indices, range break indices, and more. In addition to synthetic indices, they also provide access to currency pairs, stock indices, and commodities.

On Deriv, you can trade synthetic indices either as a binary option contract on their Deriv Trader, Deriv Go and  Smart Trader or as a Contract for Difference (CFD) on Deriv X, Deriv cTrader, or Deriv MT5.

2) Weltrade

Weltrade is another synthetic indices broker that has come into play recently. The broker has been gaining traction over the recent years. Weltrade, was founded in 2006 originally under the name SystemForex but later rebranded to Weltrade in 2012

Some of the synthetic indices instruments offered by Weltrade include FX Vol, SFX Vol, PainX/GainX, FlipX, and SwitchX. In addition to synthetic indices, traders on Weltrade can also access a wide variety of traditional markets, including currency pairs, commodities, metals, and stocks.

On Weltrade, synthetic indices are traded as Contracts for Difference (CFDs); this provides flexible trading opportunities with high leverage and competitive spreads.

How to Open Synthetic Indices Account on MT5

To open a synthetic indices account, you need to sign up with a broker that offers synthetic indices as a tradable instrument and then create a synthetic indices trading account.

Here is a step-by-step guide on how to open synthetic indices account:

Step 1: Choose a Synthetic Indices Broker

As I mentioned earlier, not all forex brokers offer synthetic indices as tradable instruments. Currently, only two brokers provide access to synthetic indices: Deriv and Weltrade.

Since synthetic indices are proprietary products, the broker you choose depends on the specific instruments you want to trade. If you’re interested in instruments such as volatility indices, boom and crash indices, range break indices, step indices, and related products, you should choose Deriv, as they are the only broker that offers these.

On the other hand, if you want to trade instruments like FX Vol, SFX Vol, PainX/GainX, FlipX, and SwitchX, you’ll need to go with Weltrade, as they are the only broker that offers these types of synthetic indices.

Step 2: Sign Up With the synthetic indices Broker

After choosing a synthetic indices broker, the next step is to sign up with them.

Since Deriv provides access to most of the popular synthetic indices instruments, I’ll show you how to register with them and create a synthetic indices trading account.

To begin, visit the Deriv sign-up page. You will be brought to a page that looks like this:

Then enter your email address and complete the email verification to create an account.

Step 3: Create a synthetic indices DMT5 account

After completing the email verification as directed in the step 2 above, you will be brought to a page that looks like this:

Once you have successfully verified your email address, you will be credited with a demo capital of 10,000 shown in the image above. Now, the next thing is for you to create a synthetic indices trading account.

Inside trader’s hub, scroll down to the CFD section and tap on the get button as shown below in other to create a synthetic indices trading account.

When you click on the get button, marked in the image above, you will be prompted to create a DMT5 password. Endeavor to note the password you choose because it is what you will use to connect your account to MT5.

Step 4: Connect Your Synthetic indices account to MT5

After creating the DMT5 account as directed in step 3 above, the next step is to connect it to MT5 so that you can start trading synthetic indices right from your MT5.

To begin, click on the open button;

You will be shown a DMT5 login detail just like the one below:

Then note down the DMT5 login details, which include the broker, server, login ID, and the password you created. This is what you will need to connect your account to MT5.

After that, open your MT5 and click on add button as shown below.

Then search for the Deriv Limited, and then enter the login details as you copied it from the DMT5 account.

After entering it, click on login, and you will be logged in immediately.

You can then go to the quotes tab and tap on the open button;

From there you will find different synthetic index instruments that you can add to your quotes tab.

Here is a video guide on how you can connect your synthetic indices account to MT5.