Demo trading is one of those little known secrets within the world of binary options trading. It’s not well known that this is available, yet it’s really easy to get access to and it can help your trading out a lot. For those of you that do not know, demo trading is the same as regular trading, but with play money. You do it in real time and you do it with the same software platform that you would normally use for your trading. It’s a great way to get started with binary options trading and it can give you a big advantage if used right.
Why it’s a Secret
Not a lot of people use this feature simply because it isn’t highly advertised. The major brokers really don’t need to promote this because they get business without promotion. 24Option (www.24option.com) and GTOptions (www.gtoptions.com) all have these capabilities, but they also have huge existing client bases that don’t ask about demo trading. However, most brokers do offer this, but only a few make it well known. The best way to gain access to this is to simply contact the customer service department. In most cases, you will need to make a qualifying deposit before you can begin to demo trade, but this should still be free. The deposit never needs to be used if you decide not to trade with real money at all. The brokers are not hiding this, they just don’t heavily advertise this feature of their sites because it isn’t always convenient for them to promote it. Still, a good binary options demo trading session can advance your knowledge, and this will increase the amount of trades you make with the broker, making it in everyone’s best interest to use this software.
How to Use it Best
Demo accounts within the binary options industry are usually only available for a short time–around three days at the most. With this in mind, please remember that testing long term strategies of any sort with just a demo account is impossible. So why should you even bother? Well, there’s a lot more to trading than just the long term. Before you even get to that point, you need to focus on stringing together short term gains. This means successful trading, and the best way to accomplish this is a combination of market knowledge and technical proficiency. Think about it: if you know the software well, you are going to be less likely to make an easily avoidable mistake. Mistakes equal lost money, and avoiding them means more profits. A demo account allows you to learn the software well enough in order to avoid these silly mistakes later on in your trading when real money is at stake.
Instead of focusing on perfecting a strategy, use demo trading to master the basics. Perhaps you are new to a broker. Figure out as much about that broker’s trading platform as you can with the few days you have with your demo account. Learn how to do the 60 second trades and the 30 minute trades. If you’re trying a new overall strategy, test out little things that will go along with that strategy. You can’t use a demo account indefinitely, but you can use it for simple little things, so do this as best as you are able to.
How to Get One
The easiest way to activate a demo account is to just ask your site’s customer service department. They will tell you what you need to do to qualify for one. Most likely, you will need to open up and fund a real money account first. This doesn’t mean you are paying for demo trading, though. If you don’t like the software after trying it out, just withdraw what you deposited and it will be back in your account in less than a week. Odds are, though, if you like the software, you will want to begin trading anyway, so having the money there already is actually a convenience in this sense.
Whatever the directions are, customer service will let you know and walk you through them. These will vary a bit from broker to broker, but in the end, you will have a few days to trade with all of the tools that the site offers, but with absolutely zero risk. It allows you to figure out how best to use the site, see if it will work for you, and help you get pointed in the right direction when it comes time to start trading with real money. Demo trading will not allow you to perfect a strategy, but it will get you started down this road, and that’s a big start.
Using a demo account is a necessity if you want to be a good trader right off the bat. Everyone will make mistakes, and a demo account gets the mistakes that are made when you first start out of the way before you risk your own cash. This means higher profits down the road–and this alone makes getting a demo trading account worthwhile for every single trader.