You trade with binary options because you want to make money. You don’t trade just because it’s exciting or you have nothing else to do.
You just want to trade profitably and make profits. Offers like a free demo account are there for a reason – you should get used to binary options trading before you trade for real money – but sooner or later you have to trade with real money and try to make as much money as possible. The term for that is real money trading. There’s no doubt that the selection of the right broker is vital before you can start trading for real money. There are many binary options brokers on the market but only a few can be recommended. One of them is Anyoption, one of the oldest and most reliable brokers out there. Anyoption also offers a free demo account for traders that don’t want to trade with real money yet. Click here to take a closer look at Anyoption!
Starting with a demo account
Compared to Forex trading, binary options are much easier to understand and trade. However, this does not mean that you don’t have to practice before trading with real money. The very best way to do so is opening a free demo account with play money. You can trade without any risk – when you lose it won’t hurt you and you won’t lose real money. Please bear in mind that many things can go wrong when you trade with small amounts of real money. When you deposit $100 the minimum option value is $25. Then you can only trade with four options before you go broke in the worst case. You won’t learn much with these four trades. This is not the case with a demo account where you get thousands of dollars and where you can trade with hundreds of options before there’s any chance you will go broke.
To sum it up: Start trading with a demo account
before you trade for real money (when possible)!
Trading with $50, $100 or $250?
We’d like to explain how to trade with small amounts of money. Beginners, in particular, are interested in investing as little as possible. When you take a look at the Forex broker market you will recognize that it was not possible to trade with small amounts such as $50. You can now create micro accounts with just a few bucks! It’s obvious that you won’t make a lot of money with investments this small but it’s a good way to start.
We believe that binary option brokers will go into the same direction. It is now hard to find brokers with a $100 minimum deposit or less and it’s almost impossible to find a reliable broker that allows accounts as low as $50. The main problem is not the minimum deposit but the minimum size you can trade with. Depositing “only” $100 and trading with $25 options does not make sense. It’s likely that you won’t last long with this strategy. It’s better to find a broker with minimum options of $10 even though this could mean you have to deposit more than $100. You can always make a withdrawal and trade with less money than you deposited initially.