Demo accounts are a great way for investors new to binary options to learn the processes involved, to try out a particular trade or experiment with a trading strategy – all without having to risk any of their own investment funds. They are therefore an ideal starting point for anyone heading out on their binary options journey.
Some brokers will offer demo accounts as part of a training package to new traders. So in addition to access to videos, webinars and even one to one training, brokers will also allow traders access to a demo account. These training packages are normally only offered once an account has been opened and funded (a real money deposit made). Opening just a demo account without funding a real money account, can often mean the full education programme is not made available. This is not to say a demonstration account is not worthwhile however.
We explore some these benefits in more detail below.
Our comparison tables offer a quick way to compare the services of some of the leading binary options brokers online, but there is a way to have an even closer look – open a demo trading account. Each broker offers slightly different interfaces, and tools. Trying them out before committing any money to an account is the best possible form of comparison. All the demo accounts listed here are no deposit demo accounts.
The subtle differences in markets, expiry times and minimum trade levels, means that what works well for one investor may not be ideal for another. In binary options trading, things can change quickly, so a swift, easy to understand trading portal is important. The best layout however, might be a matter of opinion. So experimenting can allow potential clients to find the best trading platform for them.
Trading strategies are a key element of binary options investment. Finding the right strategy is not easy however. Even a working strategy may see a drop in profitably over time. So while new methods are being tested, or existing processes tweaked, a demo account makes sense. Running through a series of trades where no money is at stake, allows an investor to see what is working, and equally, what is not.
Running a demo trading account alongside a real money binary options account is an ideal way for those looking to create a profitable strategy to do so while minimising risk.
Demo trading accounts also allow investors to find the correct level of investment for them personally. There are a range of strategies or advisers who advocate investing a certain percentage of the overall fund for each trade. Some investors might be keen to invest more heavily in some trades and scale back others. With a demo trading account, it is easier to see just how much an account would need to be funded with, to cope with whatever strategy is in place. It means finding a trading level that suits is simpler too.
Taking the time to trade for a while via a demo binary options account can highlight strengths and weaknesses. Focussing on the strengths – trading histories that show success – can lead to long term specialisms. Certain asset classes may be more suited to the sort of durations that a particular trader likes to use. Similarly some personal insight into an asset may lead to much more successful trading. Identifying these trends prior to funding an account can save an awful lot of money that can be better invested elsewhere.
Ultimately, a demo trading account will allow investors to learn, without costing them anything. Building up experience and confidence, without having to lose money. These lessons are probably very similar to those that other traders have had to learn the hard way – by losing money. New investors especially, would do well to try and progress from novice to experienced trader as cheaply as possible. This is what makes the binary options demo trading accounts such an invaluable tool. Unfortunately, not all brokers offer demo accounts and the list is shrinking. We have listed those that do, so take advantage while you can.
Brokers do not generally require a deposit in order to open a demo account. They have enough confidence in their brands to allow potential new customers to try their trading platform without making a deposit.
All the binary options demo accounts listed on these pages are no deposit demo accounts.
All brokers will require some form of sign up before allowing new traders to open a demo account. They need to get an email address – and verify it – as a bare minimum, but the benefits of using demo accounts far outweigh any hassle of signing up.
At present Ayrex are offering access to a no sign up demo account. This allows traders to see and use the platform, but any results or history will be lost once the user leaves.