How Binary Option Demo Accounts are Useful

How Binary Option Demo Accounts are Useful

Submitted by adil on Tue, 12/02/2014 - 08:21

A lot has been said about demo accounts for Binary options. There are a number of brokers who try to make money by tricking new traders into such possibilities. These are simply ways to increase marketing opportunities for a number of brokers. The aim of this article is to give you an insight about free demo account and why binary option brokers provide this facility.

Why create a Demo Account?
Many of the experienced traders suggest that beginners should always start the trading business by practicing on demo account. Only after they have practiced their trading strategy and understood all the trading rules, they should invest their valuable earnings.  Demo accounts can be considered as virtual cash accounts. Traders are able to enjoy all the facilities of binary option trading, but with virtual money. The best feature of demo account is that your money or asset is safe from any sort of loss or damage. The new trader is able to develop a better understanding about the Binary Options platform and also with the process of placing trades. Many brokers have led their clients to a false assumption that they are providing feature of demo account, whereas in reality it is just a movie clip about demo accounts.

What services are provided by a Demo Account?
If any broker provides the facility for demo account, he sets up virtual account for the trader. In doing so the broker provides the trader with a set amount, which is referred as the virtual cash. This virtual account is only set up if the trader asks for this facility. After a virtual account has been set up, the broker sets up an expiry period of the demo account. Certain brokers offer a free time period for the sake of testing, but this time period varies between a day or maximum, a week. The important thing to understand before opening such an account is to develop an understanding about all the trading strategies and processes. A new trader should try to learn the maximum from his demo account and benefit in the best possible way.

What is the initial deposit for demo account?
It is observed that almost 99% of the binary option brokers require a certain amount of initial deposit before actually creating a demo account. It is a rumor that free demo accounts are created without paying any initial deposit. In order to create a demo account a certain amount of initial value must be paid by all binary option traders. One important reason for the initial amount is the fact that this amount serves as a contract between the broker and the client.
In order to practice binary option trading in a risk free setting, creating a demo account is an excellent idea. This account supplies a new trader with a certain amount of virtual money and sets the new trader free in the exciting world of binary trading. A trader is not only able to trade with actual assets, but also learn new skills which can be practiced in actual trading.