Written by: Sophie May
Before you start trading on a new binary options platform, it is essential that you know how the platform functions and are comfortable trading. Do you think you could pass a driving test without having a lesson beforehand? Similarly, binary option trading is accessible to all, but you do need to practice and learn the tricks of the trade before starting with your own money. Good experience with a demo account can be the difference between your first real trades finishing in or out of the money.
A demo account is the best way to learn and is highly recommended. You’ll become familiar with trading techniques and the various platforms on offer. Many of the experienced traders at Banc De Binary still retain and use their demo account long after they have begun trading. They appreciate the opportunity it provides to try out a new trading strategy or start learning about the patterns of a different asset.
What should you ask for?
A reputable binary options broker will be happy to provide all customers with their own proper demo account, allowing you to execute trades. Check before joining up that your broker offers this. Don’t settle for less. Smaller firms can be guilty of promising a “demo” which is simply a video demonstrating how the platform works. Make sure that your broker will provide you with your own demo account to experiment with and practice on, without gaining or losing a single dollar of your own money.
Are they really free?
Brokerages often advertise their demo accounts as being free. This does not mean that are free to anyone on the street, but rather that they are free for customers, those who have already deposited. This is to ensure that you are serious about trading. Bear in mind that leading brokerages like Banc De Binary will offer other educational resources and lessons with a Senior Broker to those who have a demo account so they care that you are genuinely interested. However, should you wish, you are entitled to use the demo account and then withdraw your deposit, without having spent a cent.
How long do they last?
Sometimes a demo account will last a day, sometimes a week, sometimes a month. The top brokerages will allow you to keep the demo for an unlimited amount of time and use it alongside your real account. Ask in advance of signing up with a broker how long their demo lasts so that you know what to expect. Especially if you are a beginner, it is vital to be realistic about the length of time you will need to practice and improve. Don’t rush unnecessarily. The more you can learn before you start trading with real money, the higher your success and profit levels will be.