Among the top methods used for learning how to trade binary options is the use of a demo account. What these accounts offer is a risk-free way to not only learn use how to use the trading platform, but also a way to put your analysis skills and strategies to the test. Not all practice account are created equal, however, so knowing what to expect prior to requesting one will be extremely beneficial.
There are two types of mock trading accounts, one being the type which allows you to practice trading within the actual platform, and the other being the type which allows you to trade within a designated practice platform. Both are going to provide benefits, but it is important to ask the broker whether or not there are any differences between the actual platform and practice platform if you’ll be trading within a platform that is strictly designed for demonstration purposes.
Additional difference to note include the length of time that the account will remain active and the amount of funds that the account will contain. In most cases, there will either be a set number of days allotted for practice or a set amount of funds that can be used. Unlimited demos are available at 24option, but onlye a few other brokers are providing these at this time. Should you find that you need more time to practice, submit a request. Many brokers are more than willing to provide their prospective clients with all the tools necessary to learn how to trade well.
Some brokers do provide these accounts only on the condition that the trader first makes a deposit. This can be alarming to some, but the fact of the matter is that the funds should be available for immediate withdrawal should you decide not to continue on. The primary reason for asking for a deposit is to ensure that demo accounts are only provided to those who are serious about trading. Brokers devotes lots of time and resources to prospective traders, so it only makes sense that they would want to see a sign of serious interest prior to providing this type of account.
Note that not all brokers advertise that they offer these types of accounts. In some cases you may need to contact the customer service department and inquire about whether or not mock trading is a possibility, and if so, find out what the requirements are. Keep in mind also that it is possible to utilize more than one of these accounts. There is no limit on the number of binary options brokers that you can trade with and no limit on the number of different broker platforms that you can test via a demo account.
There are a number of ways in which trader can take full advantage of this opportunity to master the platform and develop new skills. One would be to make use of every trade type and expiry time. Another would be to actually watch each trade, paying particular attention to how the asset price moves about. Each asset is going to have its own distinct characteristics, with many revealing important clues in relation to their typical movement patterns. For this reason there is much to be learn from monitoring open positions.
Due to the fact that learning how to trade binary options is a simple process, not all traders are going to need or want a demo account. However, if you suspect that you are not ready to trade using actual funds, a practice account will offer you the opportunity to properly prepare yourself for live trading within the platform. Practice may not always make perfect, but it can certainly go a long way in ensuring that novice traders avoid any costly mistakes.