Free Binary Options Demo Account – How to get one?
A demo account or practice account, is definitely the best way to learn how to trade binary options. It allows you to make trades in real time, with live data, and to get used to the trading platform, before investing any real money.
Here are some basic facts about Demo Accounts:
1. Demo accounts allow you to trade finanical assets in real expiry times, but with virtual money
2. Normally there is a time limit on a demo account, which depends on each broker
3. You can get $50,000 of virtual money in a practice account, this amount varies with each broker
Request a Demo Account
Most brokers don’t advertise openly that they offer a demo account. They usually ask you to register for Free for a live account, and then you have to specifically request to get a demo account. In such cases the broker will usually agree to create a practice account for you. The demo account can have up to $50,000 virtual money, but this depends on the broker. Once the broker sets up your demo account, you can place as many trades as you want and try out different binary option types (ex: High / Low, Boundary) and strategies. Trading on a demo account first will help you understand better how to trade binary options successfully. You should keep in mind that a demo account may be valid for a certain period of time, for example a few days or a few weeks depending on the broker.
Demo Accounts are not videos
The majority of brokers claim to offer a demo account on their websites, but it’s actually a video or some kind of presentation. Don’t be misled by such claims and contact them to ask if they can provide you with a demo account, if they don’t provide you with one, then just continue searching for another broker.
Deposit money first, and then get a Demo Account
Some brokers ask you to register and deposit money into a Live Account in order to get a Demo Account. They require you to make the minimum deposit requirement, this way the money will stay in your live account untouched and you can withdraw it at any time. The convenience of this is that if you are happy with you demo account trading and you wish to switch to live trading, your live account will be ready with real funds and you can start trading right away.
Examples of Brokers offering a Binary Options Demo Account:
Banc de Binary Demo Account with $250 deposit first
Boss Capital Demo Account with $200 deposit first
Do you really need a Demo Account?
Some brokers say that a demo account is not necessary since binary options are easy to trade and because the educational materials on their website are enough for you to learn how to trade. It is definitely helpful to read as much educational materials and ebooks about binary options. If you feel comfortable after that, you can go ahead and open a live account.
There are several reasons why many traders prefer to open a live account directly. First the minimum amount to open an account is usually only $200. Also the minimum investment amount for a single option is usually only $10. This means that with a small investment you can begin trading. For example with $30 you can make 3 live trades.
In addition, some brokers offer a special “Risk Free Trading” promotion, where they refund your loses of your first trade, up to a certain amount. For example a broker may refund your first losing trade, up to $50. This is also a nice incentive to open a live account first and participate in this promotion.
As a new trader, you will most likely make mistakes in the beginning, but trading on a demo account first can help you identify them. This will save you time and money, which is very important when you are starting to trade Binary Options. Whatever you decide to do, make sure you understand all risks before you begin investing real money.