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Binary Options Demo Account is a virtual-money account that allows you training your trading skills with no danger of losing real money.
There is a funny story of a guy, who made some money on a demo account and tried to withdraw them to his card. When a technical support specialist choking with laughter explained to him that it was impossible, the guy began to post messages on the Internet about that binary options trading was a scam.))
You need to start trading through a broker exactly with virtual funds. Don’t listen to anybody who thinks differently, for example, in this way: “Demo account teaches nothing”, “You need to start trading with a large amount of money”, otherwise “You’ll lose money” and other absurd things.
At that, it is important that a broker provide you with a demo account without any restrictions and doesn’t get in your way, when you use it.
Many binary brokers offer demo accounts, but they often have tricks inside. One can find various restrictions not rarely applied to the accounts: for example, certain assets (whether it be shares or currency pairs) are not available, trade size is limited, etc.
However, many of them offer a virtual account that doesn’t differ from a real account.
It is an absolutely abnormal condition stipulated by some brokers, namely: they offer a demo account only after funding … a real account with real money.
The logic behind the idea is clear from the perspective of a broker: a client swallows the bait in the form of a trading platform. As for the client, the logic is not clear at all. Of course, the client can fund a real account at any time, but he/she needs a demo account just to check out the trading platform. There are plenty of brokers who offer demo accounts with no conditions.
This is the right example of demo account. It doesn’t even require registration or opening it. The feature is available with Binomo broker for example. Just go this page to access the broker interface without any restrictions
Screenshot: Binary options demo account no deposit in Binomo
Bear in mind that most brokerage companies don’t offer trading on weekends: this is why demo accounts are usually not accessible on Saturdays and Sundays.
What’s the difference between a demo account and a real account?
Some scam brokers practiced such a funny scheme, where all the consecutive trades made by traders on a demo account were winning. These traders being in seventh heaven due to such a success funded their deposits and … , of course, lost all the money. Nowadays brokers scarcely apply such dirty tricks, but they did it in the past.
The main difference between a real and a demo account belongs exclusively to the sphere of psychology, and it is tremendous. Demo trading is as simple as ABC, since you don’t risk your own real money and can do anything you want: double and triple your deposit in the heat of the moment, reverse trades, use martingale day and night and not deny yourself anything.
There is a huge psychological difference between these two types of account. However, you should start your trading exactly with a demo account.
It is better to treat a demo account like a real one from the very beginning. You can learn what trading is, if you trade with real money only. However, if you treat it like that, it can help you to dampen the feeling of excitement that comes over all demo traders.
A broker must give you a free, fully-featured demo account and none of their excuses are not interested to traders. Demo account is necessary to assess performance of a trading platform, test your own abilities and just prepare for trading. It also allows you to learn about basic functionality and features of a broker.
Instead, some brokers talk utter nonsense about not offering a demo account from the very beginning. Let’s discuss it in brief:
1. Demo account puts an additional load on our servers
Really? If so, then why not buy a normal server with the money that statistically lose 95% of traders. If they don’t have money on good servers, who traders need such brokers then?
2. Demo account have a negative impact on our platform
If so, then who developed the platform? A monkey? Item 2 is the most absurd excuse ever given. If the impact is really negative, the platform is initially unstable. Thanks for the information.
3. You can paper trade
I know that I can write down my entries and exits on a piece of paper. Why would I want to trade with you?
4. It is better to start trading with real money at once
I want to have a free opportunity to check out your platform and only THEN (but not earlier) I might fund my account with real money.
Needless to say, a demo account often lacks all the features. That’s very stupid. Don’t hide anything from clients and people will go along to get along.
5. Specify your phone number and our manager will get in touch with you
It is a trick for newbies. Don’t think I’ll fall for it: I know that your manager will call me and foist signals, bonuses and all that junk upon me.
If a broker requires you to give your phone number instead of giving you a demo account, forget about the company.
6. Our traders don’t need a demo account
No comments at all. You would else decide for me, what to do, where to go and what to eat.
7. Money first, and then you can get a demo account
Many brokers practice it. Are you OK? You think I don’t understand that it is a primitive trick aimed to make traders swallow the bait in the form of a trading platform, don’t you?
I’m well aware of that. At that, your minimum deposit is usually of $200-300. That’s really nice of you! Well, it follows that I owe a broker before I can assess how it works. But what if I don’t like it? Then I have to withdraw my money and lose some of them, since I have to pay a commission for a payment system. It’s a very bad news.
8. Our manager will manage your trading, so you don’t need a demo account.
Oh, stop it! We well know that a binary broker earns thanks to traders who lost all their money. And your managers’ task is to help them lose money every time.
I prefer brokers who don’t have managers at all and never call me. No, thanks.
9. We don’t have a demo account, but our minimum deposit is only of $200.
“Only $200” – I “like” that! But other brokers offer $0.5, $0.4 and even $0.2. Competition is the main motive force of progress. There are too many binary options brokers to give them even $50 without testing how they work.
10. We don’t have a demo account
Then you’ll not have your clients. Good bye!
Don’t trust to their fake excuses, opt for the right platforms by brokers who give demo accounts at once and without any restrictions and it brings you happiness!
Now let’s speak about how to make the most out of a demo account. Most traders treat demo account like a funny free game and thereby don’t take full advantage of its potential. However, the potential exists in spite of all the psychological differences from a real account.
Perhaps, you have already downloaded a multitude of various binary trading strategies, while Googling for them. Now it’s the right time for testing it. Money don’t play a role here, because you don’t risk anything. Since this is the case, then make use of the opportunity. Try to imagine that not virtual money, but real one, are at stake, so take it seriously.
You need to know a multitude of things to trade binary options successfully:
You can initially practice all of it on a demo account, develop your own trading plan and define entry rules.
By doing so, you will have tested your trading strategy on a demo account dozens of times and make conclusions out of it before you go live (= move to a real account from a demo account).
As a rule, people prefer to use demo accounts for testing the strategies learned in books and on the Internet and especially after watching numerous Youtube videos on “successful” trading. Sometimes demo accounts are quite enough to realize how much useless are those strategies.
Practicing the above-mentioned skills on a demo account will make your more prepared for all those challenges that you will inevitably face, while trading on real account. And these challenges are mostly of a psychological nature. That’s why you need to treat a demo account like a real account as much as possible.
Don’t play – just work. Explore your strategy, test concepts of technical analysis and repeat it again and again. Demo account allows you doing all of it.
On the one hand, you can obtain fairly good results by trading on a demo account. Traders regularly share screenshots of their account statements on online forums to show how much they have “earned” out of a demo account. Some of them start from virtual $1000, stop at $300-400,000 and give up demo trading, because it’s too “easy” money.
And that is true. The fact is that a free gambling game, which a demo account relates to, involves a zero risk and 100% excitement. One can snatch a large sum of money playing this virtual casino game (demo account) from time to time. However, gamblers, who accustom themselves to a gambling scheme of work, do irreparable harm to themselves that have an impact on their further real trading.
It is different for a real account. A demo account doesn’t make you feel stress in contrast with a real account, where you feel nothing but stress, when the market goes against your position causing you to lose money. When you trade on a real account, you feel emotions, doubts, hesitation, and an itch for money. You’ll never feel all of it, while trading on a demo account.
Sometimes it is recommended that traders should switch to demo account again after they have failed in real trading. It is a reasonable recommendation, but only a real-money trading can make you an experienced trader. Of course, a demo account eliminates the factor of stress; however, forecasts can be made by a live price chart using such instruments as Forecast by TradingView.
It is believed that it is no good in trading on a demo account for more than a month. One month is quite enough to familiarize oneself with trading, learn and understand, at least, the basics of technical analysis in order to go live.
Demo trading for several months is a mere waste of time. Its effectiveness starts to decrease sharply from a certain point of time, after which a trader begins to “outstay”. It is typically due to the fear of going live, losing money, lacking of confidence both in oneself and own powers and trading system.
Have no fear, but you’ll have it in any case 🙂 It’s natural. Everybody has a fear of losing money. Trading is a continuous work to improve yourself, so the longer you put off the moment of going live, the harder it will eventually be for you to do it.