If you are new to binary options trading, new to a specific broker, or testing out a new strategy, then the best thing to do is to “practice” your trades without risk of losing money. Given that it is essentially a trial and error period, you don’t want to put your money at risk without a good chance of winning. To be successful in binary options trading, it requires enough training so that your investment will grow rather than be wasted while you are unsure of any variables.
A Binary Options Broker Demo Account is a great way to develop your skills without trading with real money. You can practice trading online in real time, only without the potential for profits and losses. It is FREE, and NO deposit should be needed. The broker supplies your demo account with an amount of money and you’re good to go. You can trade in real time with real assets and you get to see how you manage trading with your broker or new strategy. A demo account is exactly the same as a real money account, without the real money. You can use all the features and tools you need or want to learn, until you are confident enough to start your own real money account. This is really what the brokers want to happen. Most demo accounts are positively converted to a real money account. A broker who offers demo account has absolutely nothing to gain from you but trust.
Starting your real money account
When you decide to convert your demo account to a real money account, it is usually a very simple process. Under your account settings you should be able to find the option to convert to a real money account. (Of course you can’t cash out winnings from a demo account since you don’t have any real money deposits in the first place). Once done, the broker will request your initial deposit after they have confirmed your identity.
Most brokers will offer bonuses at the start of your registration. These bonuses would increase your account size but, they also have corresponding trading requirements before you can cash out your money in some cases up to 250 times the bonus. This is to ensure that the trader won’t cash out the bonus offered immediately, however it also locks up your deposit as well – so you cannot cash out ANY funds until the trading requirement has been met.
Make sure you read the fine print carefully before accepting any bonuses from your broker.
If you are new to the world of Binary Options trading, a demo account is definitely the first step you should consider before digging into real money trading. By placing demo trades your errors won’t be as expensive!