Binary trading has been rising in popularity ever since it became a separate trading market. There are numerous binary brokers, together with plenty of facilitating tools such as binary signals and automated trading robots. As the number of traders is on the rise, there are also more and more brokers and helpful tools to make the trading easier and more successful. One of these tools are demo account, offered by most binary brokers.
What are demo accounts?
When you find an online broker and register for an account, before you start trading, you are required to place an initial deposit and start investing the money. If you are still new to binary options, the trading may not be successful enough in the beginning. This is why many binary brokers offer demo accounts. They are basically like a video game with the theme of binary trading. With a demo account, you have some fictional money on your account, and you invest it, lose it and earn it as you trade. This way you are allowed to get familiar with the concept and try out the platform without risking real money.
Advantages of demo accounts
You may wonder what the point of demo account is, if you do not earn any real money. Even though it may seem unappealing to simply “play a game” instead of really trade, there are actually plenty of benefits and good sides of demo accounts.
Learning the concept of trading
For those who are still new in the trading world, demo accounts are an ideal method of learning about the whole concept. Even though it is fairly simple, when you open the platform for the first time, it may look very confusing. Therefore, using a demo account will help you understand what is what, and you will not lose a dime before you learn what you need to do.
No financial loss
The biggest problem people have with demo accounts is that there are no earnings. However, it is fair because there is no loss either. As we mentioned, this is ideal for those who want to get familiar with the concept before they start the actual trading.
Getting to know your broker’s platform
Online brokers mostly order premade platforms from third-party websites. This is why you will sometimes see exactly the same platform with different brokers. Still, some of them use custom-made platforms designed especially for them. This results in different types of platforms, with different design and options. In order to get to know your broker’s platform, it is useful to first execute a few virtual trades, so you can see the similarities and differences between platforms and choose the one that suits you best.
Identical conditions as with real trades
If the broker has a responsive and user-friendly demo platform, it is going to be the same with the real one. Choosing a good broker (Banc de Binary, for example) provides you with security while trading, but you can also be sure that the platform you try out will be equally good as the one on which you invest real money.