Does a Binary Options Demo Account Helps You?
This is a controversial subject. If on the one hand a beginner in this market needs to learn how to trade to avoid losing their money at an early stage, on the other hand the use of a Binary Options Demo Account does not allow you to have a real trading environment.
What is a Binary Options Demo Account?
A Demo or Demonstration account is an account like a real account, but with fictitious money. The broker gives the trader an account, similar to a real account, with a value that only serves to experiment and learn.
Advantages of a Binary Options Demo Account:
> Allows you to practice and learn without losing your money.
> Gives you the opportunity to try out various strategies and multiple assets to choose what fits best to the way you trade.
Disadvantages of a Binary Options Demo Account:
> The fact that the account doesn’t have real money causes the trader to not be interested in the same way as if it was real money. This causes the trader to not research, not learn, and not test as effectively.
> In a binary options Demo account we have no fear of losing trades. Therefore, we trade without fear, without the emotional factor. The day we open a real account and start trading with our money, it’s different. There is emotion, there is the fear of losing. And this fear of losing money can change everything we’ve learned before in the Binary Options Demo Account. We may trade differently, which makes the time spent training with the Demo account meaningless.
> The two previous points often lead traders to have poor results in the Demo accounts and not want to trade in a real account. Or, on the contrary, traders have sensational results in a Demo account, and after opening a real account the results are not the same.
Binary Options Demo Account – Conclusion:
In my opinion, and I have been trading for several years, I think that when we want to try a new strategy, a new asset, or a new Broker, it is worth trying a Demo account first. However, it should be just to practice, to learn how the platform works and how the new strategy behaves.
The results, good or bad, are just tests. We should not give too much importance to the results obtained with a Binary Options Demo Account, whether they are very good, or very bad.
I think that if you are interested in trying binary options, you should open a Demo account to familiarize yourself with the platform, to practice. But after a few days, you should try a real account, because only with a real account will you actually learn, really understand if you can be a trader with positive results and understand how much you can earn if you are good at trading.
The majority of regulated Brokers offer demo accounts, but only after you make your first deposit.
Of the top Brokers that I researched, those who offer Demo accounts without having to make a deposit first are: