Many binary options brokers offer a wide range of educational materials. You can find webinars, YouTube videos, e-books and much more. Many also offer a demo account. A demo account is just what it sounds like – a demo account, where you get the opportunity to try out the platform without risk. You play with virtual currency and cannot lose anything.
TRY WITHOUT RISK
It is an ideal way for beginners to learn more and to find their feet before it’s time to start investing for real. It is also a very good way to learn more about the platform and what it’s actually like dealing with this type of trading. Because you are trading with pretend currency, you can invest without risk of losing your money. Obviously, you also won’t win any real money, but you can learn how it works, and might feel a little safer when it comes to actual trading in binary options.
Free or not?
Some brokers offer free demo accounts, which means you do not need to make a larger deposit to get this account. You sign up and make a regular deposit, whereupon an account manager sets up an account for you. Most binary options brokers require that you first make a deposit before you can open a demo account. Here it may be helpful to remember that the deposit requirements of many brokers are relatively high, and lie between 100 and 250 euros.
Once you have a demo account, you can quietly learn how the platform and software works. Most are very intuitive, but you still have to learn how they work, even if it doesn’t take more than a minute. You can try various options, markets and time frames. That way you can sample everything, and see what you like, discover what might be a little tricky, and what you want to test further. Best of all, while you’re making your rookie mistakes (we’ve all made them), you’re trading in pretend currency and won’t lose a penny of your own money.
BENEFITS OF A DEMO ACCOUNT
There are almost no disadvantages when it comes to having a demo account. We believe that all brokers should offer one and are a little surprised that more do not offer this as a standard. Additionally, we recommend all new investors to open a demo account before they start trading with real money. It’s really worth it, not just because you can try trading with no risk, but also because you can try different types of options and time frames without it costing you anything.
Are there any drawbacks to trading with a demo account? There actually are, and the biggest mistake to make is to take greater risks than you would have done if you had been trading in real money. If you’re going to learn anything, you should treat demo money like real money.
Another drawback can be that if you are lucky and hit the mark almost every time, you might become overconfident once you start trading with real money. Remember that it evens itself out over a longer period, and that you therefore cannot draw broad conclusions after a few days of trading. Even if it went well when you were trading in your demo account, you should be careful when you start for real.
WHICH BROKERS OFFER DEMO ACCOUNTS?
Unfortunately, not all brokers offer a demo account. If you are completely new to binary options and want to learn with a demo account, we’ve compiled a list of brokers that offer a test account.
IQ Option is a broker that has grown rapidly and gained market share. We here at binäraoptioner.se find that this broker now offers the absolute best demo account. You can test completely free, and you don’t need to deposit any money to get access to the demo. The fact that they also have a good range of training options makes it even better. IQ Options is a good first broker for getting your feet wet for the first time.
Stockpair is our second choice when it comes to trading options with a demo account. Through their training services you can easily get to know their platform and get valuable tips that can help your trading. The disadvantage of Stockpair is that it requires a deposit of €200 for you to start using the demo account. This money will then lie dormant until you want to try trading with real money.
24Options is our third choice, and even here you can test run trading in options. Just as with Stockpair, you need to make a minimum deposit to get started with the demo version. You must first register and then contact your account manager to move on and start trading.
Banc de Binary is our fourth choice, where you can start your adventure with 50 000 euros in pretend money. It gives you a good chance to learn how options trading works before you take the leap and start out with real money. Just as with the others, it requires that you first make a deposit in order to get access to the demo account.
GET STARTED WITH YOU NEW ACCOUNT
This is what you can do to get started and try trading in binary options without any risk.
- Choose a good broker, you’ll find our full list here.
- Then click on demo account, test account or similar when registering
- Download the software from the broker if necessary, and open the program (many brokers offer trading directly in your browser).
- Now you can simply go ahead and trade in your new demo account. You simply select the asset you want to speculate in, and then select the desired duration and decide how much you want to place. Just remember that you’re trying to act just as you would if it was your own money.
To sum it all up, we really recommend that you start trading on a demo account if you are completely new. Remember to read the rules before you start, because many brokers require a certain deposit in order for you to get access to the account. When you get started you have to forget that it’s just “for fun” and act just as if it were your own money. We hope that you’ve now taken your first step towards becoming a full-fledged trader.