A demo account is an account that is funded with virtual money. You could also call it play money but you trade with it and don’t use it for games. At least that’s what you’re supposed to do. This money is worth nothing. It is not possible to buy anything with it and nobody cries when it’s gone. That’s why such a demo account is so secure for traders that are not used to binary option trading. As a novice trader, you can gather experience and you can buy or sell options without any risk. You can test your trading strategies and much more. You call it a demo account because real trading will be demonstrated.
The question is: Which broker offers an unlimited demo account free of charge? Most people assume that this will be the case for most binary option brokers but the reverse is true! Many brokers don’t want to give traders the opportunity to trade for free and want to force them to trade for real money. It’s obvious that most traders don’t want to sign up there because they don’t want to risk their own money with their first trades. Some traders trade for real money when they can’t opt for a demo account. We think that brokers should give traders a chance to trade with a demo account. There are several brokers that want you to make an initial deposit to use their demo platform. You can withdraw every time and it’s still for free. If you don’t like it you can quit without hassle. One of these brokers is Nadex which is the most popular and only regulated US broker. You can trade with a free demo account or with real money starting with $100 deposits only. There’s no doubt, this is your best choice when trying to start with binary options.
Broker without a demo account
Not every broker offers a demo account. Most others offer a demo account but the requirement is that you make a deposit. Even though you can withdraw your deposit anytime, you want it still forces you to deposit money. A good example is 24Option. It is still one of the best brokers out there but you have to deposit at least $250 to be able to use their demo account. The intention is obvious: Chances are that a trader that already showed he’s capable of making a deposit will trade for real money later on. This is what a broker wants. But when someone does not even want to deposit funds, it’s likely he never will and he should not be able to use a demo account. That’s how most binary option brokers think. We hope that they will change these restrictions in the near future and some brokers already are. Binary options has been growing over the last few years and new brokers are emerging like IQOption. They started out as new broker and are now one of the largest. The reason? They developed their own platform which is superior in most regards and they welcome small traders as much as big traders. You can deposit $10 to get started and trade with $1 options – it really can’t get lower…