If you are new to Binary Options Trading, the tendency is to jump straight in and trade with real money. Stop, pause and don not do this. Our advice is do not trade live for 2 or 3 days and place at least 100 demo trades first. If you do trade live with real money, the likelihood is you will lose and be wiped out before you start. This is a scenario we want you to avoid at all costs so please heed our advice. A demo account can give you many advantages as a trader. It provides a no risk way for you to begin trading with a new broker and test out new theories in the marketplace. This is true whether you are a brand new binary options trader or you have years of experience. Even if you have been trading for years it is still a good discipline to demo new strategies and theories. This is life long learning and never stops.
Advantages Of Trading A Demo Account
- You can place as many trades as you wish. It is free to demo.
- It does not matter if you lose. You will discover what works and what doesn’t.
- Find out who you are as a trader. Are you a 30 second, 60 second, 2 minute, 5 minute or 10 minute trader?
- Discover the currency pairs you like trading.
Trading in any capacity can be tough, but using a demo account will give you an extra edge when it comes to making more money. Basically, a binary options demo account is exactly like real money trading. The assets and the platform remain exactly the same. All of the market conditions are the same too. The only difference is that when you trade with a demo account, you are not risking real money.
This is something that every trader needs to take advantage of. Demo trading teaches you how to use your broker’s web platform and this helps to eliminate user error. Believe it or not, many people lose money because they are unfamiliar with how to use the software that their particular broker uses. This does not need to happen, however, since it is really easy to avoid. Trading with a demo account gives you a risk free setting where you can learn the intricacies of just how the platform works. The better prepared you are to use the software, the more mechanical things will be when entering a trade. It gives you a better opportunity to just focus on the important aspects of trading, and less worry will be spent trying to figure out whether you are filling out information on the broker’s page correctly.
The majority of brokers that offer demo accounts currently will only allow you to trade demo style for a very limited amount of time. This prevents you from truly testing out a new trading method over the long term, but it does give you the opportunity to do some short term exploration on how your trading will look over the course of a few days. If you are trying something out for the first time, this is a big benefit. You will be able to try the new theory out and give yourself a clear picture of how to actually execute the trades that you are supposed to. You won’t know for certain if your strategy is going to be successful a year from now, but you will be able to see how the short term mechanics of the strategy work—and you won’t lose any of your own money while going through this learning process.
Demo accounts are free to open. You do—in most cases—have to open up an account with the broker and make a minimum deposit, but there is no cost to actually demo trade. If you deposit your money and then decide you don’t like the broker after giving demo trading a try, you can have your money returned to you.
Demo accounts do have a distinct downfall. Most brokers will only allow you to demo trade for an average of three days. This can limit how much you actually get out of demo trading since a long term approach is necessary for actually getting a good gauge on your levels of success. This is true even if you are trading 60 second or two minute options. Still, this type of trading gives you an advantage that you wouldn’t have otherwise, and this is definitely a good thing for all kinds of binary options traders. You may have to contact your broker’s customer service in order to gain access to the provided demo trading account.
Anthony Stone first traded sports spreads in 1995 and in 2013 started trading binary options. After having made every mistake in the book and then some he searched for professional to help him become an effective trader. After an extensive search he found Franco Pellegrino, “the guru” who guided him to success. Franco and Anthony formed a partnership expanding the service to all four corners of the globe. Anthony will be a featured presenter at EscapeArtist’s Global Online Summit, May 12-23. Click here to learn more about Anthony and the dozens of globalized living experts who will share their experience and wisdom at the Summit.