Binary Options Demo Accounts

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.

Advantages of Binary Options

Binary Options have many advantages over tradition Options and indeed over traditional currency, commodity and stock trading. Ideally suited to new investors and those unfamiliar with trading environments we are seeing many experienced investors move away from FOREX and other types of trading due to the many advantages of Binary Options trading.

Binary Options facilitate the trading of a wide variety of assets across multiple markets with high rewards and lower risk in a fast time-frame when compared to other types of trading.

Easy to Get Started

Getting started trading Binary Options is simple. You choose a broker or brokers, sign up, make a deposit and you can start trading. However it is strongly advised to practice on the broker’s demo system first so that you can test out your trading strategy.

Many brokers now have low initial deposit requirements ($200) making this form of trading accessible to almost everyone. Other forms of trading require large initial deposits of perhaps $10,000 or even more than $100,000 thereby excluding people that don’t have large amounts of money readily available.
Simple and Easy to Trade

Binary Options are simple to trade as you only need to predict the direction that the asset will move whereas with traditional options you also need to predict by how much the asset will move. In addition the expiry times can be very short which can make the outcome easier to predict.

Once logged into your account with your broker you simply select the asset, select the direction (CALL = Increase in price, PUT = decrease in price) and decide how much you wish to invest in the trade. Finally select start/submit and your trade is recorded. Now all you have to do is wait for the trade to expire to see if you are “in the money”.

Experienced traders use a proven trading strategy and follow the information wires looking for news and events that could have an effect on their chosen asset price. It is important also to check an Economic Calendar regularly to see if there are any announcements or events scheduled that could influence the asset price.

Controlled Risk

Unlike other forms of trading the potential profits and losses are known upfront. You cannot lose more than your original investment in the trade. Some brokers now return up to 15% of any losses which is unique to Binary Options trading.

Many traders use the 5% rule of thumb when trading. They never invest more than 5% of their total capital in any one trade which protects them from one bad trade wiping them out completely.

High Fixed Payouts and Fast Returns

Payouts are usually higher from Binary Options trading than from other types of trading and typically range from 75%-85% for standard options. In addition, the expiry times are short with most brokers offering 60 second, 5 minute, 15 minute, 1 hour and end of day so you know quickly how you are performing and fast returns are possible.

Multiple Assets/Markets

One single broker account gives you access to Currencies, Commodities, Stocks and Indices across multiple worldwide exchanges. Brokers do offer different sets of assets so it is worth checking their asset lists first, that way you are sure to find your preferred assets or areas that you want to focus on.

Short Term Contracts

As mentioned earlier contracts can be as short as 60 seconds while others may last for 3 months. This gives you several investment opportunities and flexibility when trading to cope with changing market conditions.
Multiple Types of Binary Options

Binary Options trading provides you with multiple types of Options to trade so that you can adapt your strategy depending on the current market conditions. For example you can trade boundary or touch options when the market is volatile. This allows you to trade in any market condition.

Trade Small Amounts

Many brokers have low minimum trade amounts so that you can build you confidence while learning to trade. These minimums can be as low as $10 but $25 is more typical. There are no other trading environments where you can make such high returns for so little so quickly.

Trade Anywhere Anytime

Trading platforms are available via PC and laptop and more recently via tablet and mobile phone. This latest development means you can now trade and check on your assets when out and about accessing your broker’s system via a smartphone or tablet. This will allow you to trade 24 hours a day as Binary Options cover international markets and there are always assets being traded.

As we have seen there are many advantages of Binary Options trading from being easy to get started, simple to use, high payouts and quick returns. This makes them an ideal investment choice for new traders and an attractive alternative for experienced traders.

Binary Options Scam

Binary Options trading is becoming more and more popular with individual investors due to the low cost of entry and simplicity of trading. While this form of investing opens up opportunities for traders it also presents opportunities for people whose only aim is to scam you out of your hard earned money. While there are reputable brokers in this field there are some which are a blatant Binary Options scam and many more who because of poor processes, bad management and unreliable systems provide a less than acceptable service to traders. While they are not scams as such you could just as easily lose your hard earned cash.

Since the concept of Binary Options trading emerged in 2008 the brokers involved remained largely unregulated. That is until very recently. Some brokers are now regulated by one of the appointed regulatory bodies and these brokers are audited to insure that they have the required processes and procedures in place to provide the promised service. In addition, client funds are ring fenced and guaranteed should the broker find itself in a position where it is unable to honour its debts.
Not All Unregulated Brokers Are Scams

Keep in mind that there are still good reputable brokers that are, as yet, unregulated and they may be going through the process of regulation.
Regulatory Authorities

Many Binary Options brokers are registered in Cyprus and they will usually be regulated by the Cyprus Securities and Exchange Commission (CYSEC). This is the most common form of Binary Options Broker Regulation today.

There are scam brokers who claim to be regulated so it is worth checking with the regulatory authority if they are indeed regulated. Often the registered entity will trade as a brand name so it is important to establish the actual name of the company behind the brand. For example the company behind 24Options is CBay Financial Services Ltd and that is the name you want to look up when checking the Regulatory Authority registers.

The more common Regulatory Authorities are:

CYSEC – Cyprus Securities and Exchange Commission

CFTC – Commodity Futures Trading Commission

FCA – Financial Conduct Authority

ASIC – Australian Securities and Investments Commission
Choosing the Best Binary Options Broker

There are many factors to check out other than whether they are regulated or not when choosing your broker. While regulation is important you may want to know:

– Do they accept US traders (if you are resident in the USA)

– Have they a good reputation

– Have they high pay outs

– Do they pay out quickly

– What is their minimum deposit

– What is their minimum trade amount

– Do they have a mobile app

– Do they provide education and support

– Do they have a demo system

– Do they provide bonuses

– Are their terms and conditions reasonable and fair (also check their bonus Ts & Cs)

With some of the best brokers now regulated and many more going through the process you will have ample choice and are sure to find a reputable broker that suits your needs.

Techniques used in the Binary Options Trade

Techniques used in the Binary Options Trade

The binary options trade is like a bird’s eye view of the economy. It’s a form of trade where people predict the direction of a particular asset or the overall market. What makes binary options very appealing is that aside from their straightforward reward-risk variables, investors get to choose when the trading begins and ends.

Binary Options can go as short as 60 seconds.

Despite having straightforward reward-risk variables, the binary options trade requires people to have good strategies in order to trade efficiently. There are several types of trading strategies and this article will tap on the most common three.

Using technical analysis

Technical analysis involves the use of charts in order to predict the price movements of assets. It is, in theory, the basis of all price predictions. Without charts, it’s impossible to keep track of price movements. Technical analysis basically means that whatever happened in the past will repeat itself again in the future since “the market remembers.” Because of this, it’s extremely important to look back and analyze candlestick chart patterns or any other technical indicator that happened in the past. There’s no shortcut to being good in technical analysis; only experience and mastery of application matters when looking at charts.

Using fundamental analysis

If technical analysis involves the use of charts, fundamental analysis involves reading business news. Fundamental analysis is about studying the overall economic situation to predict whether prices will shift or not. Let’s take a look at gold for example. Gold’s prices are declining now for a number of reasons. The U.S. Fed has just stopped its quantitative easing and is predicted to increase interest rates in the U.S. by next year – two major factors that drive the precious yellow metal’s prices down today. In addition, the tensions in Ukraine are easing now and gold’s purpose as hedge against political turmoil isn’t currently needed. Last year, when Germany decided to return home some of its gold reserves from the U.S., investors scrambled to have gold investments. They’ve deducted Germany’s repatriation program as the country’s way of preparing for an economic crisis. Physical gold is used as hedge against economic uncertainty and Germany is well aware of that. Things like these that you hear in the news are important to know whether or not gold prices will go up or down within a given timeframe. Real-time monitoring of news can help investors make sound decision in binary options.

The Martingale type of betting

The Martingale technique used in binary options demand investors to double the amount of their initial investment at each loss until a gain is achieved. It’s as simple as that. This form of strategy has higher risks than gains, since it requires investors to double their bets until their winning position of closing. The principle of the Martingale strategy is to offset losses of previous bets until an investor gains his or her target. If an investor predicts the price movements incorrectly for several times in a row, his or her losses will be extremely huge. Beginners should definitely stay away from this binary options technique.

10 Binary Options Tips

Trading Binary Options boils down to simply choosing if an asset will finish higher or lower than when the trade started. You must decide whether to choose PUT or Call. How do you decide? We have included some helpful binary options tips that will help you make that all important decision. While these tips are not a guarantee of instant success they will help you fine tune your trading skills and highlight some of the common pit falls.

There are many ways to succeed as a Binary Options Trader and these 10 Binary Options Trading Tips will help you make a good start to your trading career or point out some bad habits if you already have some trading experience.

1. Understand the Binary Options Market and Trading Tools

Don’t just jump in and randomly choose PUT or Call. This is simply gambling and at best you will win some trades by pure chance. Instead learn all you can about how this market works and the products that are available from brokers.

2. Choose a Reputable Binary Options Broker

Look for a broker with a wide choice of assets and a high rate of payout. If you have a preference for a particular market check that your chosen broker offers trades on this. Choose a broker with a demo system so that you can fully check out their platform and get comfortable with their interface before making any live trades. There are many new brokers appearing on the market every day, while they may be great brokers they will be largely unproven and will not yet have gained a reputation (good or bad). It is advised to go with the established and proven brokers who have had time to prove themselves.

3. Learn How to Trade

This may seem obvious but many new traders get so caught up in the exciting prospect of earning large amounts of money that they skip this step. They jump in without fully understanding how to trade and lose their funds. It is important to take advantage of the broker’s demo system and practice trading and check out any strategies that you may consider using when live trading. In fact many experienced traders use demo systems to check new strategies and techniques.

4. Research the Markets and Implement a Strategy

Successful traders research their assets well, keeping up to date with any news that is likely to affect their asset price and keep an eye on an Economic Calendar, checking what events are coming up that may cause the asset price to rise or fall. In addition, they use proven strategies that work for them. Trading without research or reliable binary options trading strategy is a sure way to lose more trades than you win and your broker will love you!

5. Choose Assets Wisely

Pick one of the more common assets available to trade. There will be much analysis and news available for the more common assets and they tend to be discussed in-depth in forums and other online sources. Avoid the less common assets unless it is one that you already are familiar with and comfortable making predictions on its movements.

6. Practice on a Demo System

As already stated ask for access to the brokers demo system and check that it is a fully interactive system and not just a series of slides and graphics. Most brokers will insist that you make a deposit before allowing access to their demo systems but if you are serious about trading you will be making a deposit when you get started so this should not be an issue for you. Give yourself time to get to know the system fully and to practice trading and using your strategy.

7. Manage Your Money and Your Risks

There is a saying “Don’t put all your eggs in one basket” and this is true for traders too. You should never risk too much of your capital on one trade, many traders never risk more than 5% of their capital on a single trade. If it goes wrong they will still have a sizable portion of their capital available to continue and can recover quickly.

8. Consider trading One-Hour Binary Options

Avoid very long-term Binary Options until you are more experienced. It is difficult to accurately predict where an asset price will be in one month. Instead trade One-Hour Options where you can more accurately predict the closing asset price from analysis, research, upcoming economic events and news stories. In addition, this can be a quick way to profit. If the market is trending in a particular direction you may consider using 60-Second Options to take advantage of the trend and maximise your profits.

9. Sign Up for Binary Options Signals

Signal providers will issue you with their predictions on a regular basis. If the signal provider has a high winning ratio this makes sense as they will have carried out expensive research and analysis prior to releasing the signal. However, they do not always predict correctly but good ones win more than lose.

10. Don’t Expect to get Rich Quick

Some traders just want to earn some extra cash from a couple of hours work per week while others make a great living by putting in a lot of hard work and extra effort. Be realistic and understand that you get out what you put in and if you put in nothing….well you know what the result will be.

Pros and cons of binary options

If you look at the popularity of this trading strategy, it is first clear that this offers many advantages over other investments, but if you can trade binary options even more closely, it becomes clear quickly that not everything can only be of benefit.

It is encouraging, however, for all investors first is the simplicity of the system. Easier to understand and to act is no other product on the market. Either you are wrong or you are right, in between there is no other way. In addition, the high yields, waving one in the event of a win cannot despise himself. Especially for beginners binary options therefore offer a good opportunity to make a lucrative business. Professionals is apparently going to many different trading strategies of binary options.

Special options such as range or touch or the so-called straddle strategies from the normal options trading experts offer on the market many different ways to test themselves. There are also varieties of investment options, ranging from currencies to commodities. Nevertheless, where there are many advantages, the disadvantages cannot be far. It should be of the huge popularity of binary options cannot be just a newcomer hide too much. For while actually expect a great return, one has, for example, of a price explosion of an underlying investment is very little, because the previously known percentage amount is the only thing there was to win. It does not matter if the price is only upward.

Many of the short term trading is also seen as a disadvantage. It is still in the field of binary options is not possible to speculate longer than one month. Many investors, however, would like the option to extend the maturity on a longer period.

Trade in your phone

Because in today’s world almost everyone already owns a smartphone, it is not far; this is used for making the binary options trading. Thus, one can at any time and in any place, whether at home, at work or at play act. This can be advantageous for many reasons poses, but also some disadvantages.

Binary options – Various assets

For binary options trading are various attachments that are not traded in this system directly.They rather bet on this, whether its price will rise or fall. Currencies, in addition to raw materials to the top trade items. The investor has the option to bet on all available on the Forex currency pairs and their price movements.Commodities are especially challenging for experienced traders.

Especially in the past few months has shown how sensitive commodity prices on external factors, such as the crisis in the euro zone. The precious metals market was booming, while most investors retreated from riskier products. In addition to the trade in gold and silver, traders can also opt for oil and other commodities. Equities or equity indices are somewhat more something for the newcomers.

It is in this case on the underlying futures, as the Dow Jones or the Dax, or directly on the stocks of large companies.

The binary options trading

Actually, binary options are still a relatively new phenomenon in the market. Particularly for private investors this form of trading is not long possible. Yet it is hardly surpassed in popularity. Experienced traders and beginners can be inspired by the apparent simplicity of this system in action.

Moreover, the binary option is one of the most profitable investment opportunities, as investors per trade, income of up to 85 percent beckons.For private investors nowadays the easiest way is to enter the trade, to turn to brokers binary options online. It does not even require a large start-up capital in order to start trading. Some providers are already with a minimum deposit of only 100 euros in business.

If the option expired, it is whether they are “in the money” or “out of the money”. These two terms describe the two ways, whether you won or lost completely its use. Plays the fact not so important to how much the price has risen or fallen. If you set on falling prices and these are however higher, you lose.

A stipulated discharge date of the option, the investor agree and market makers determine whether the price of the underlying asset is above or below the targeted value and thus, whether the investor is successful or not.

What exactly is Binary options?

Until not so long time was trading binary options, which are known technically as well as digital options, but the trend has turned and therefore private investors now have the opportunity to get this popular and to use relatively simple form of trading.

Just for new entrants to the market, the binary options be interesting, because the trade can be quite easy to understand. If you look even more closely at the matter, so each will be clear, however, that the trade itself is not so easy to perform. Its principle is easy to understand, but to estimate the timing of the courses, this does not easily, so that beginners first should not make overly risky operations.

The binary options trading instrument until recently as more exotic. Poll results and trends suggest, however, clearly indicates that this is an increasingly popular option trading is that investors respond very much. The winning trades can sometimes lead to very high profit. Nevertheless, to whom the binary option owes its growing popularity the most is probably its simplicity. The investor decides so really only two options. If the price go up or down it is. This is also the reason why newcomers gladly choose this system.

Nevertheless, even experienced investors hold out much and can enter through specific strategies for a good return. Investors may, in the event that he has predicted the correct trend until the expiry of the option to earn up to 85 percent of its money invested. What many traders fascinated by the concept of binary options is the incredible speed with which some transactions can be conducted.

The products at very short example have a running time of only 60 seconds. However, there is also the possibility to choose longer-term products, which have durations of up to one month. An asset represents the basis of a binary option.