Binary options trading is often referred to as the easiest and most simple way of trading in financial markets. Still, everyone who has any knowledge of it will explain to you how it is not all as easy as it seems. Some traders believe how binary trading is only a fun game you can play with a little extra money you have, but in fact, it is a type of financial trading that contains risk, as well as the possibility of future profit.
Binary options demo accounts can help you learn more about binary options and get familiar with the trading platform. In this article, you will find out more about different types of binary options demo accounts and learn how to use them for your own benefit.
What is Binary Trading Demo Account?
Demo account is a type of account that is based on the same type of platform but doesn’t allow any deposits. All traders get an equal amount of virtual money they can use for trading. The platform is exactly the same as a real trading platform and usually contains the same charts, tools, assets, and indicators.
The main difference is that demo account trading carries no risk. You can’t lose money while trading on a binary demo account as the money is not real. This also means that you can’t make any real profit either. But you can learn about the broker and binary trading which will help you in the future.
Binary Demo Account Types Revealed
Not all demo accounts are made the same. The difference is not only in the technological background and virtual amount that is given to you but also in the very basic approach.
There are two main demo account types:
- Demo accounts available after deposit. The trader has to make a deposit, usually in the amount of $250 in order to get access to the demo trading. Sometimes demo account requires an even higher deposit and is part of more exclusive service packages.
- Free demo accounts. These accounts are deposit-free. You can open a demo account and make a deposit later, in case you are happy with the platform and the broker.
Why are Demo Accounts Important?
Demo accounts let you know what binary trading looks like before you try the real deal. You don’t make any risk, and you don’t make any profit, but you are still making progress in your trading styles.
Think of binary trading as of a college exam – would you rather take and exam without prior studying, or would you rather get familiar with the course?
Of course, there are better and worse binary options accounts, and the price is not the one that determines the quality of it. The good demo account will provide you with a reasonable amount of virtual money for practice trading. Usually, that amount is around $1,000. This way you can really experience what the trading looks like. If you get $2,000,000 virtual money, you won’t be trading in real conditions as that is an amount you will probably never have on your trading account. You will trade more recklessly and learn a lot less.
How to Select a Good Demo Account?
Good news for traders! Good brokers usually have a good demo account, so demo account per se should never be the most important factor. Demo account is worth nothing without appropriate support and a broker that offers you good real trading experience. Binary trading is a complex mixture of several elements that make the perfect combination only when all added together.
Binary demo account is definitely one of them. Unfortunately, less and less binary brokers are offering demo trading accounts as they request complicated and advanced technological support by means of servers and human power. Some smaller brokers simply can’t afford demo trading accounts.
However, one of the most popular brokers on the market – IQ Option has a demo account that is available to all traders who decide to join. You can open it in several easy steps and start testing the platform. IQ Option demo trading platform is no different than the real trading platform and contains all important elements that traders use while trading. After you have tested the platform, you can simply decide to make a deposit with IQ Option.
If you have an opportunity, definitely try the demo account, whether you are a professional or a beginner, as it tells a lot about the broker and gives you an insight into what the trading process might look like in the future. Don’t hesitate to test it and use it as a real trading account as this is the best way to find out all the holes in your knowledge about binary options trading. Make sure to find the right broker as well, as a good binary broker and good demo are the perfect combination!