Binary options trading is all about making the right decisions at the right time. You can make a lot of money in seconds, but you should be careful when investing your own money. One of the best ways to test your binary options strategies is by opening a virtual binary options trading account, also called demo account.
Why Open a Binary Options Demo Account
As the name says already, this type of trading account gives you the possibility to use a binary platform 100% free and unlike live accounts, here you don’t need to make a real money deposit. With a Virtual Binary Account you get virtual money (also called play money). You can use this money to make any type of trade and you won’t risk your own money this way.
Of course, if you win, it will still be virtual money, so no real money reward will come from virtual money binary options trading. The real deal is still the real money trading, which you can only experience if you make a deposit.
Advantages of Binary Options Virtual Money
Using a demo account is recommended especially to new users, who are not familiar with this type of trading yet, but advanced users can also try if, to get more accustomed to a new binary options platform. This is a risk free way to find out if you like the broker and what features it offers. You can read hundreds of reviews and article about a broker, but you will be able to decide which broker is best for you, if you see for yourself how it works.
What is the Goal of Demo Accounts
The goal of these virtual money accounts is to build a stable and strong trading strategy. You can try out any crazy binary strategy that you find on the internet and try it for yourself without risking money.
Most users don’t even know that there are only a few popular binary options trading platforms like Spotoption. Lets say you are interested in joining a broker that does not offer a demo account. You could do some research and find out what platform that broker is using and find another broker that users the same platform but also offers a virtual account. This way you will have the most features in the demo account even though that is a completely different broker.
Get a Demo Account if you Make a Deposit
Not all binary options demo accounts are the same.There are the types of virtual accounts that the binary options brokers offer:
- No demo accounts: There are many brokers that simply don’t offer any kind of demo accounts.
- Demo accounts that are unlimited: Some brokers allow you to just sign up and open a virtual account to trade with fake money, no deposit required. These accounts are unlimited, which means that you can use it forever, without limitation.
- Demo accounts after making a deposit: There are few brokers, where you can only access your deposit account only after making a first deposit. Don’t worry, because by testing the demo account your deposited money will be untouched. You can only use the real money in your live account and there is also a workaround if you just want a demo account but you don’t actually want to trade with real money: you can make a deposit, decline any welcome deposit bonus, and make a withdraw later.
- Demo accounts with a time restriction: Mainly forex brokers use these kinds of accounts. These accounts work for a limited time, a period which should be enough to decide if you like the broker or not.
What decline a deposit bonus? These “welcome bonuses” come with restrictions, and you won’t be able to withdraw your money, only after meeting certain conditions like making x amount of trades.
Welcome bonuses are only good if you are 100% that you will stick to that broker, and you plan to take trading seriously and trade frequently.
Why do some of the brokers not have a demo account
It’s all about the money. The free demo accounts do cost the brokers money. Even though the heavy lifting is done my computers, it still isn’t free for them. The brokers are there to make money and virtual account are an extra expense, which means that it’s not worth it to most brokers to offer demo accounts.
Which Binary Options Brokers offer Free Demo Accounts
Banc De Binary: This is one of the biggest names in the binary options industry. Banc De Binary offers a free virtual platform. Just contact the support team and they will set it up for you.
24Option: This is the most popular binary options broker. 24Option requires you to make an initial deposit of $250 or more in order to get a demo account there.
CTOption: The best US broker to offer a demo account is CToption. Try out their risk free, free of charge account.
Which Demo Account Should I Pick
Why not all of them? They are free, you have nothing to lose. If you really want to try only one of them, then go for the Banc De Binary account. You don’t have to make a deposit and your account is set up within minutes.