Free Demo Accounts
There is no better way to check out a new broker and get to grips with a new trading platform.
While you may understand the concept of trading, actual trading with real money can be a daunting prospect. Not only is it an excellent plan to start practice trading with virtual money, but a demo account can also be a real benefit for those who are switching brokers and merely want to test out their features for free.
In this article, you will learn:
- All the different types of demo platforms
- Why traders should always practice trade
- How to use them to maximise your profits
The Right Practice Broker
You probably don't have the time to search through scores of brokers looking at each, the requirements that go with it and testing them all to find the one that's right for you. Are we right? Our experts have done precisely that. We have vetted the various binary options brokers to test the following when it comes to demo accounts:
Is a Demo Account Offered
It is unusual for a good broker not to offer a practice account these days. It is a critical way to attract new traders, so it stands to reason that part of their package to encourage you to open an account, is to offer a demo platform.
How Easy is it to Use
Is the demo account easy to use? Because it is a simulated version of the live platform, it should represent the actual trading environment. You also need to be able to access it from a mobile device so that you can trade on the move.
The Demo Account Cost
When we say; "the demo account cost" what we mean is whether or not you need to deposit to gain access. Some brokers will allow you to enter your email address and start using it straight away. Others will insist on a deposit to open an account first.
With some brokers come certain conditions. While some will offer a one-time demo account that you have to use within a specific amount of time, others will allow you to reload your balance or open more than one.
If you choose wisely, you should be able to find brokers that allow you to try before you deposit funds. This way you have nothing to lose if you
Why Use a Demo Account
Demos or practice accounts are there to give the novice trader some "practise" before they start to risk their own money. As with lots of things, gaining the skills takes lots of practice, it certainly does help to use a demo before you trade for real.
These accounts allow your to have a few "test runs" at trading with virtual funds before you start to use your own money. For those who have a little more experience, a practice account is also a great way to test new strategies or broker features.
You may trade a certain way, but you may be looking to try out a new method. With a test account, you can try out new theories without the risk. If you are looking to make the switch from another broker, it is also a great way to get to grips with trading on a different platform.
Demo Account Tips
Some accounts have limitations. Some brokers will only allow you 72 hours of trading. That is plenty of time to get to grips with a platform and test out a few trades if used correctly, but when you sign up, you don't have whole days to play. Even though a practice account uses virtual money, it is still essential to get the best demo account out there and gain crucial experience for when you start to trade with real money. If you plan on using automated tools like robot software, make sure the demo account allows that too.
If you are new to binary options, demo accounts can be a great place to start.
Our Recommended Shortlist
Our reviews and recommendations give you a comprehensive shortlist of contenders, but it is up to you to make the final decision. We have conducted countless surveys based on some points, but only you will be able to know what works for you. There is no harm in choosing a few and taking advantage of all of them. Even making a small deposit in each and trialling each demo could save you losses in the long run.
Use the demo accounts on all platforms until you are satisfied that you have found the one that works for you. Then follow our tried and tested tips to make sure you maximise your practice experience. Once you have experienced successes and perhaps losses from virtual trading, you will no doubt feel more comfortable and confident trading with real money. Find your strengths, know your limitations and enjoy trading.
In our experience demo accounts used correctly enhance the trading experience and make trading more comfortable, especially for the first time trader.
Frequently Asked Questions
Are binary demo accounts free to use?
Generally, binary options brokers require you to deposit real money before they allow you to use a demo account. There are a few selected brokers that do offer free versions.
Do all brokers offer demo accounts?
No, not all brokers offer practice accounts, but the top brokers do. Some of these will require a minimum deposit before you can use the account.
Can I use a demo account with no deposit?
Most brokers require a minimum signup deposit when you open an account to use the features of their demo account but not all.
Are all trade types and assets available?
With many brokers, you can trade as you would on the live system, but a few brokers do restrict the number of assets available.
Do they come with any time restrictions?
With some brokers, yes, they do come with time restrictions. When you deposit your funds, some brokers may place a cap of say 48 hours on the demo account.
Jacob has been an author for us since our launch in 2012. He has over forty years’ experience in the financial sector and has held a variety of positions within financial services corporations and venture capitalist organisations.