Whether you are new to Binary Options trading or an experienced investor a Binary Options demo account is a valuable resource. Don’t be tempted to just jump in and start live trading immediately. Take the time to have a good look around the demo system and practice your strategies. This approach will help to increase your success rate and lessen the chances of making costly mistakes.
New traders and especially people trading for the first time should ask for access to their chosen brokers’ demo system once they have signed up. Most brokers will require an initial deposit before giving access to a demo account but usually this is refundable should you decide not to continue with this broker. Check the terms and conditions to see their policy on demo accounts.
Make sure that the broker has a tradable demo account and not just a flash or video overview of how their system works. You want to be able to simulate a real live trade to firstly get comfortable with their platform and to check how your strategy for your chosen asset works.
Experienced traders should make use of demo facilities when available to get familiar with a new platform and to test out new strategies. Some experienced traders use demo systems when working with assets that they haven’t traded before just to see if they can get a positive result before investing their own capital.
Some brokers place a time restriction on the availability to the demo system which is of little use if your requirement is to test out a new strategy. Having access to a demo system for one day is not what you need if you want to test a strategy thoroughly. If you cannot get longer access then you need to have an alternative means of testing out strategies such as using METATrader4, choosing an asset and setting your own expiry time. You can then test your strategies multiple times at your own convenience and see if they work for you.
When starting to trade Binary Options or changing broker don’t just jump in and start live trading. Use the demo if one is available. Otherwise you may make mistakes being unfamiliar with the trading platform or unfamiliar with how Binary Options trades work. Not using a demo and not checking your strategies is akin to gambling and rather than rely on luck it is far better to rely on your own judgement and skill to predict which way an asset will move.
Use the Binary Options demo as you would a live system, checking the technical and fundamental analysis of the asset you want to trade, see if there are any events on an economic calendar that will have an effect on your chosen asset while you wait for the trade to expire. This will also allow you to evaluate any strengths and weaknesses of the platform and see if it is right for you. At least if you make mistakes they will not cost you.