The main problem of novice traders when getting acquainted with binary options is to obtain theoretical and practical skills in trading in the options market. But since there are no specialized educational institutions for obtaining knowledge in this area, and most of the population has a low level of knowledge in financial trading, novice traders cannot bring their binary trading process to a professional level. However, of course, there is a way out of this situation – training programs offered by option brokers on their trading floors and demo accounts, thanks to which you can get initial experience in options trading absolutely free of charge. Therefore, in this article, we will look at the types of demo accounts along with the advantages that traders have when working in demo mode.
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So, almost all option brokers offer a demo trading format on their trading floors, but not all training tools of this plan are equally effective. If we analyze the offers of brokerage companies of this kind, we can conditionally divide the demo accounts they offer into several types:
- Conditionally training accounts – in order to issue this type of demo account, an investor needs to deposit a minimum amount of capital into a trading account with the company
- Interactive training programs – trading in this mode will have nothing to do with real trading, since it does not have the ability to carry out operations in real market conditions. In this regard, the trader will be presented with a specialized program that generates quotes to the terminal, which is significantly limited in terms of technical potential
- Demo account on the company’s live trading platform
Probably, you have already realized that the first two types of demo accounts will not allow you to effectively train and gain the necessary experience to start professional binary options trading. In this case, you will simply get acquainted with the principle of concluding transactions on a certain trading platform or receive visual instructions for analyzing a specific market situation on the asset’s price chart. However, you will not be able to fully master the work of a financial trader.
Undoubtedly, the best option is a demo account on the real trading platform of the broker company. Despite the fact that this type of training simulators is quite rare in the options market, only with its help you can really learn how to trade profitably. As an illustrative example, let’s consider one of the most popular professional demo terminals offered by the Binomo broker.
This broker offers its clients to issue a demo account on its main trading platform, without requiring any formal promises of further cooperation. Thus, the trader is provided with:
- All the functionality of the terminal
- Real quotes of the current market situation
- Extended selection of trade assets
- Access to auxiliary services of an informational nature – the theoretical basis of training, analytics
- Virtual funds in unlimited volume for training trading and gaining experience
- The opportunity to take part in the company’s tournaments
With such technical potential and the ability to use the broker’s auxiliary services in training trading, a novice trader will be able to obtain the necessary knowledge and experience for future professional trading in the present market situation.
In addition, this demo account format, which is provided by the Binomo broker, is really useful for professional traders. The broker allows you to analyze your own mistakes obtained in the course of real trading absolutely free of charge, test and create your own strategies and professional approaches to the formation of forecasts in the asset market on the real market situation. Also, a significant advantage of such a demo platform is the opportunity to earn your real start-up capital. Binomo holds regular tournaments for demo account holders with an estimated prize in the form of real money. Prize funds can be received by a trader who has shown maximum performance in a week of training on a demo account. Also note that the prize money received can be cashed out or reinvested in trading as start-up capital:
Thus, the format of a demo account on the main trading platform and, in particular, on the site of the Binomo broker provides traders with a huge number of advantages and useful opportunities that allow them to make the most profitable option trading in the future.
