Binary options are not an easy way of earning money. You may be lucky the first, second, or even third time, and if you decide to withdraw your money at that precise moment, you are officially a lucky devil. But what if you want to do it all over again?
First, let me assure you that a bad day will come sooner or later. But binary options are not just about the luck. It’s all about the strategy, and the sooner you work on your binary options strategy, the better. Which is why you may need a demo account.
Binary options demo account
It’s not only about the strategy, but also about getting to know the technology and transactional system of a given broker. Every platform has a different account system, working in a very specific way. The only difference between a demo and a “regular” account is that you use virtual money. Therefore, you get to test all the features and you get used to the way binary options work on the basis of actual market-prices. The quicker you do that, the better, because some strategies need an instant reaction. Also, you get to know a variety of options and assets as well as the particular dynamics that go with them: each asset reacts differently to a price change, which is crucial when it comes to choosing the right strategy. Some strategies demand a dynamic high/low price relationship, while others require stability and as few movements as possible.
Patience and consistency are some of the most important traits of a successful trader. The same goes for the binary options market. It may so happen that a strategy needs months of testing, because while the results are great for 1, 2 or even 3 weeks, it simply stops working after some time and we start losing money. It’s best to test your strategies until you see a certain stability and effectivity. If your success rate is 60%, you may consider it a true success, because you need at least that to achieve a reasonable profit.
What’s more, since you are not using your real money you can test even the most exotic settings and configurations. You can change the expiry dates or assets to see which configuration is the most successful and you get to do it entirely risk-free. Also, while a given strategy may work with broker A, it may not work with broker B, which may expose the differences between platforms. For instance, one platform may work slower or the assets are priced differently. That is why you should choose a demo account with a broker to whom you want to be financially connected later on.
Demo accounts: with or without a deposit?
The first demo account was available in the beginning of 2010. Before that nobody had even dreamed about that and now almost every brokers offers a demo account. Still, every broker has a separate demo account policy: some make it available to all, others require a deposit first. When you pay a deposit, you do not need to use it and you may always withdraw it, but – taking into account all the fees – usually it is financially not advisable. There are also those brokers who do not offer any demo accounts stating that they are nothing but an additional burden on the server or that they are not an accurate simulation of the process since it’s artificially emotionless without the threat of losing actual money. Still, we believe that there are more advantages than disadvantages of using a demo account.
Almost every broker limits both the availability period of a demo account as well as the amount of virtual money you can invest. However, thanks to our cooperation with OptionTrade, registering an account with our referral gives you the opportunity to fund your demo account with $1000 twice! Contact us if you’re interested.
We also encourage you to take a look at the chart comparing brokers and their demo accounts offer.