Free Demo Accounts for Binary Options Trading – True or Rumors?
After doing considerable research and negotiations with binary options brokers, we finally found convincing answers to the reaction to the biggest rumor/half-truth about the binary options industry – free binary options demo accounts. We have received hundreds of emails from traders with questions on this topic.
Binary options brokers providing free demo accounts to their clients, even potential clients, are surrounded by a huge number of rumors. Some of the rumors are true, while others are just a publicity stunt, or just lies to advertise and lure scammers. We are pleased to provide our readers with the opportunity to deal with some of the questions. You just need to read and understand them for yourself, so as not to fall for the bait of scammers and use binary options demo accounts correctly.
What is a free demo account in binary options?
When it comes to demo accounts for binary trading, most people are referring to accounts with virtual money. Accounts with virtual money are basically trading real assets in real time, but with “virtual” or demo money. In other words, you are not using your real money, but you can practice and get acquainted with the binary options platform and the trading process.
Some brokers claim to have a demo account, but in reality it’s often just a clip or some other way of briefly demonstrating how to trade binary options. When you come across a broker who claims to have a demo, but all they have is a five-minute clip, then most likely you need to look for another broker. In this article, we will talk exclusively about “real” demo accounts and “free” demo accounts.
Real Demo Accounts: Trade with Virtual Money
Most binary options brokers do not provide their clients with demo services, they come up with a variety of interesting explanations. Some argue that there is no need for a demo and this will only increase the traffic load on the site, which means it will harm trading with real money. Some brokers explain that this misleads people into thinking that the decisions made while trading on a demo account and real trading are the same. Other brokers have even told me that I can do it myself, just select an asset, set up an expiration date, and then check the trades on the expiration history of the asset. Do not use the account, but simply make a withdrawal and check the results.
On the other hand, some binary options brokers provide a demo account. Virtual accounts are set up by the broker at the moment when the trader asks for it, but, as a rule, not before that. Brokers don’t give them away just like that. A different amount of virtual money is at your disposal. Another important point is the expiration date of the demo account.
Some brokers will provide you with a demo account for free, but for one day, or, at most, for one week. So, if you have the intention of opening one, make sure you know a little about trading beforehand, as you will want to practice virtual trades before the broker closes your demo account. This offer is usually limited in time. So make sure you make the most of it and place as many trades as possible while your account is still active.
Free Demo Account: Do I Need to Make a Deposit First?
Before taking advantage of a free demo account, many brokers need to make a first deposit. There are no free demo accounts, but just demo accounts. Brokers are reluctant to hand out demo accounts left and right, for the same reasons we’ve already mentioned. And another reason why an initial deposit is required is that it is a supposedly unwritten contract between the client and the broker.
Making a deposit obliges the client, and the broker too, and is a good reason to provide the trader with a demo account. Simply put, this is a kind of trap. Most likely, this will be a scam, but you can make a deposit, use a demo account, and then apply for a withdrawal of money from the account.
So, if you are only interested in a demo account without trading with real money, try to implement what we have proposed. Moreover, trading with virtual money is a step that every trader should take before starting to trade with real money. Even if the psychological aspect (fear of losing money, greed) is different from the one we encounter when trading on a demo account, it is still a good exercise that prepares you for future binary options trading.
Tagged with: Binary Options Demo Account
