Last Updated on Mar 27, 2020 by James W
A demo account is an account which you can use to perform virtual trades on the binary trading platform. There are lots of brokers that provide free demo accounts to encourage traders to sign up with them. Some demo accounts are already pre-loaded with virtual funds while others are not.
There is nothing to lose, when trading on a demo trading platform because you are not trading with real money. You won’t have to blame yourself for making wrong trading decision in a demo platform.
The downside is that you won’t be able to have a full understanding on the underlying risks and learn from your mistake as you do when you trade on real money.Some brokers will automatically reload your demo account after you have used up all the balance.
The demo account usually have some limitations such as time frame and accessible features. A good broker will offer a demo account that gives traders access to all the same features in the real trading platform.
Benefits of Demo Accounts
With a demo account, you can test the features of the platform. You can check whether they live up to their promises by doing research on the features they offer on the platform. You can use the demo account to test your trading strategies on various types of assets including standard options, indices, and forex. By testing your trading strategies, you will be able to create a good trading plan. You can avoid making mistakes and lose money. Many newbies make mistakes throughout their trading career. Once you have determined your mistakes, you can start to create a profitable trading plan.
The demo account gives you opportunities to become familiar with the binary options market. You can trade on the demo account until you feel that you are ready to trade on the real account. Most demo accounts last for at least 30 days. To register for a demo account, you will be asked to provide personal information such as names, telephone number and email address.
Top 3 Brokers Offering Demo Accounts
- 24Option
24Option provides a demo account that allows you to place unlimited trades. You can request for a demo account after registering for a new account. There is no risk in using the demo account as you won’t have to load real money into the account. However, they require you to deposit a minimum of $250 into your real account before you can access the demo account.
The demo account can be used to trade 60 seconds options. It enables you to learn how to manage your funds and learn different types of trading strategies. Any trader can sign up for the demo account.
- Finpari
Finpari is one of the most unique binary options brokers. The accept us traders and all other countries as well. In addition, finpari is the only broker in this list that accepts paypal deposit and withdraws.
- Banc de Binary
Banc de Binary is offering a free demo account for anyone who wants to practice their trading skills.You need to place a deposit of at least $250 before you can be qualified to access the demo account. There is no obligation for you to trade the $250 you deposit. If you are not satisfied with their trading service, you can always withdraw it at anytime.
You can trade on all kinds of assets and options on the demo account. One Touch and 60 second binary options are available in the demo account. The demo account is preloaded with $50,000 virtual money so you will have plenty of chances to test your trading strategies. There is no restriction on the trade size. The demo account allows you to master the features of the tading platform.
- Nadex
Nadex offers a free demo acccount to help newbie traders practice their trading strategies before placing a real trade. The demo account is preloaded with $25,000 virtual funds. The demo training platform can only be used for 2 weeks.
You can extend the demo account for an additional year by registering for an account and depositing at least $100. Nadex demo account can be used to trade standard high/low options and Nadex spreads.
Conclusion
In conclusion, trading on a demo account can let you see how discipline you are in managing your money on placing trades. You should take the demo account seriously and implement all the trading strategies you have in mind. You should not feel bad if you did not win any trade when you execute the trading strategy you test on the demo platform. It takes a lot of practices to become a professional trader so you should never give up easily on binary trading.
