Demo accounts have become increasingly popular among traders. Suitable for beginners as well as for professional traders testing a new binary options broker, platform or trading strategy, the demo account simulates real transactions, without the losing/winning money.
The demo account grants access to a pre-established sum of money, which can be used for trading training. The user’s skills and abilities are put to test in the same manner as they would in a real transaction. The risk-free setting stimulates users to try out new strategies as well as to trade assets they would not normally trade. Therefore, the demo account is a perfect learning tool for all types of the users.
Reasons To Register For A Demo Account
Learn: First-time binary options traders need some time to master the trading skills. A demo account helps them know the platform and better understand the trading principles. There have been numerous cases in which novices threw themselves headfirst and lost considerable amounts of money. When using a demo account, the thrill of trading is still there, but the risks associated are not, so that you can make your own mistakes and learn from them step by step. The trading principles are extremely simple, but sometimes mastering the simple things may be harder than following complex directions as in trading there is a thin line between getting rich and losing everything you invested.
Evolve: Once you have established a routine that works for you, it is easy to stay within self-imposed limits for fear of not going wrong. The demo account lets you explore all types of trading tools and discover new winning strategies. This way you will grow as a trader and have more chances of growing your return on investment.
Say no to frustration: Investing in non-profitable assets can be frustrating! Losing money certainly is! A demo account helps you learn and perfect your strategies, so that you know exactly when you do things the right way and when you are about to fail. This will prevent long-term frustration and help you have a better understanding of the market so that you become more and more confident in your trading abilities.
Finding Brokers Which Offer Demo Accounts
Most binary options brokers offer demo accounts where users can test their platform. However, in order to benefit from a demo account, the user may need to sign up for a real account at first. This means giving your email, ID information and bank/card/online pocket account for validation. Once the real account is created, the user can request a demo account until they are fully familiarized with the platform and trading options.
Some of the top online binary brokers which offer demo accounts are IqOption, Ayrex, NADEX!
When The Demo Account Expires
The demo accounts are limited by time and/or funds which can be invested. Therefore, sooner than later, the account will expire and the user will be invited to start trading real money. While the demo accounts are enough to explore the platform and trading tools, winning strategies take time. It may take you months to find those steps that lead you to success, so do not jump for the big fish immediately after the demo account is expired. You may be lucky, but in most cases, luck is not so easy to find.
When first trading, precaution is the best strategy! Small investments will help you observe the market and will enhance your trading skills, so that your evolution is a steady one. Trading is not scary, but there are risks associated with each transaction, so you need to learn how to generate profit and minimize the lost funds. The demo account does give you a little insight in the matter, but you will still need to learn some of the dos and don’ts the hard way. It is up to you how hard the hard way is.
Demo accounts are essential for newcomers, but they can also serve the seasoned traders. So, if the brokers you use, offer such a service, make the most of it to perfect your skills and try out new strategies! It will help you grow in ways you have never thought you could!