First, let's review what a demo account is in case someone doesn’t know.
A demo account is as follows:
It is a complete analogue of the usual account, but with virtual money. However, the functionality is fully saved, and the most remarkable thing the user gets is access to the live price chart. Needless to say, there is no profit with a demo account because you don’t invest real money. It’s absolutely risk-free.
Everything is real: the market, the time, your skills. You will learn the most current strategies, correct your mistakes, learn from them, and even get virtual losses.
Experts recommend even after you transition to real money not to throw away your demo account. With the demo account’s help, you can always prepare your tactics, etc.
In total, there are several types of demo accounts.
Some brokers offer convenient interactive platforms with something like training courses, i.e., practical tips for success. Actually, such a platform unobtrusively gives you all the knowledge about BO trading you need. In a short time, you will understand the essence of the trading terminal. Then, you are ready to register and begin a successful career with stable earnings.
Some binary options brokers also suggest implementing several full-trades, but with a guarantee of no loss. Thus, a newbie, secure that his or her money will not "go away," can start trading at the expense of the broker. You also know this as a "risk-free transaction." The broker agrees to compensate losses.
By the way, a great number of companies that previously specialized only on Forex have begun to consider binary options. In order to attract large audiences, they create demo accounts for traders.
As the rule, the creation of accounts is very easy and quick. It just involves intuitive registration and data entry, and you can start to trade.
Definitely don’t trade with a demo too long. Optimally, it’s better to have a goal (for example, to increase your virtual deposit by 25%), after which you can begin to trade with real money.
Most traders pass a "test" after the demo. They count all the profits and losses:
• The number of successful and unsuccessful transactions and the relationship between them
• Rate of growth of loss
The main signal indicating it’s time you to stop trading with your demo account and start trading real money is when you can decrease your deposit by 25% within 7-14 days.
If you know good binary options brokers with demo accounts, don’t hesitate to tell us about their pros and cons.