You’ve probably readied yourself with theories, tips and strategies on how it is to trade binary options. Are you ready to trade live? If you’re one of the many raring to try their hands on options trading, perhaps you are committing a mistake by risking your trading account without even so much as a practice of your trading skills. Have you considered a demo account? If you answered “Yes”, then you’re on the right track. And if it’s a “No”, don’t worry. You can still take a breather and save yourself unnecessary losses.
Demo Trading Account vs. Broker Demo: What’s the Difference?
When you see the word “demo”, first you have to find out what it means and how it is used by a broker. There are platforms that associate the word ‘demo’ with tutorials. Dig deeper before you deposit your money. Try to click on the link that says demo and see if it indeed brings you to a demo account creation page. If it gives you a link to a video tutorial or a broker demo, time to look for another broker elsewhere.
A demo account should offer the use of a virtual currency. This is what you should look for. Virtual trading will allow you to trade within a simulated trading environment, and open trade positions where you can practice strategies and enhance your trading skills.
Is there a need to use a demo account before trading live?
The obvious answer is a big resounding “Yes!” You should take it upon yourselves to get a feel of how it is to trade, even if only through practice. This way, the platform features can be tested out and you learn your way around the platform. Here are some points why creating a demo account will help you get an understanding of how you can profit easily:
Trading Methods Tested in Real Time. You can still avail of full site features even if it’s only a demo trading account. Asset prices, expiry times and news feeds are provided in real time, which you can use as if you were in an actual trading environment. Here you can experience market volatility, which will challenge you to tap into your trading techniques.
Handling Emotions. Trading is full of surprises and how you handle your emotions can greatly impact the outcome of your trades. This is also the best place to get to know how well you react or behave badly in the most challenging market situations.
Broker Dry Run. Aside from trying out what your broker promises, you can also test a broker’s commitment by initiating contact with customer service and see up to what extent they are willing to help you. Good service can be equated to professionalism, how well your concerns are handled reflects the reliability of a broker.
If you’re looking for a brokerage that has a good demo account, we highly recommend HighLow. They have a quick demo feature which you can use immediately with an instant $10,000 virtual fund. You may click here to directly access their website.