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Free Binary Options Demo Accounts – Rumors of Truth?
After much research and many chats with Binary Options Brokers, we finally came up with some proper answers to one of the biggest rumors/half true’s in Binary Options industry – Free Binary Options Demo Accounts. Bots.com has received hundreds of emails from traders regarding this matter. Many rumors have been flying around about Binary Options brokers who provide free demo accounts to customers and even potential customers. Some of them are true, others are just marketing promotions or simply untrue. Binaryoptionsthatsuck.com is happy to present our readers with some answers to those questions. You just have to read and understand them for yourselves.
Basic Facts about Demo Accounts
When talking about demo accounts, most people are referring to virtual cash accounts. Virtual cash accounts are basically the trading of real assets in real expiry times, but with “virtual” or “demo” money. In other words, you cannot lose your real money, but you can practice and get familiar with the Binary Options platform and with the process of placing trades. Some brokers claim to have a demo, but it’s often just a movie clip or some other kind of brief demonstration on how to trade Binary Options. When I come across a broker who claims to have a demo, but all he has is a 5 minute movie clip, I usually start looking for another broker. I don’t think it’s fair to mislead clients like that. This article will only discuss “real” demo accounts, and “free” demo accounts.
“Real” Demo Account – Trade virtual cash
Most Binary Options brokers don’t provide their clients with demo accounts. Some say it’s unnecessary and would only increase the traffic load on their websites; hence it could harm real cash trading. Other brokers explained that it could mislead people into thinking that their decisions are the same when trading real money verses trading virtual money. A few brokers even told me that I can actually do it myself without any help saying – just pick an asset, set your expiry time and then check your trade on the assets’ expiries history.
On the other hand, some binary options brokers do provide a demo account. A virtual account is set up by the broker at the moment the trader asks for it, usually not before. Brokers don’t just hand them out. Each broker will provide you with a different sum of virtual cash. Another important issue is the expiry periods of demo accounts – some brokers will offer you a free demo account, but only for one day, or one week tops. So if you intend to open such an account, make sure you know a little about trading beforehand, because you will want to put in some virtual trades before the broker closes your virtual account. Like I said, it’s usually an offer within a specific time limit. So make sure you make the best of it and you place as many trades as you can while your demo account is still active.
“Free” Demo Account – Do I need to deposit first?
99% of Binary Options brokers require an initial deposit before setting up a Binary Options demo account. There are no free demo accounts, only demo accounts. The answer to that question is more or less the same explanation written above – brokers don’t want to hand out demo accounts randomly, for the same reasons mentioned above. Another reason why an initial deposit is required is the unwritten contract between clients and brokers. By saying “contract” I am suggesting that making a deposit shows a commitment by the client, and therefore the broker has good reason to provide the trader with a demo account. Some may say it’s a catch, I partly agree. It may be quite a drag, but you can actually deposit, use the virtual cash account, and then request a withdrawal. So if you are really interested in a demo account without trading for real, try my suggestion. Overall, I think trading virtual cash is a step that all traders should complete before investing real money. Even if the psychological aspect (fear of losing money, greed) is not the same as when trading with demo accounts, it’s still a good exercise that prepares you for future Binary Options trading.
A few Binary Options Brokers now offer a Free Binary Options practice accounts before depositing. Unfortunately, BinaryOptionsThatSuck.com isn’t a promotional website therefore we can’t recommend a specific broker. Try checking out our Recommended Binary Options Brokers.
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