Does a Binary Options Demo Account Helps You?
This is a controversial subject. If on the one hand, a beginner in Binary Options needs to learn how to trade to avoid losing their money at an early stage, on the other hand, the use of a Binary Options Demo Account does not allow you to have a real trading environment.
What is a Binary Options Demo Account?
A Demo or Demonstration account is an account like a real account, but with fictitious money. The broker gives the trader an account, similar to a real account, with a value that only serves to experiment and learn.
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Advantages of a Binary Options Demo Account:
- The demo account allows you to train and learn without losing your money.
- It is an aid to know and to gain experience with the broker’s platforms.
- Binary Options demo accounts are a good way to get to know a new product or a new type of investment.
- Binary Options demo accounts offer the possibility to try out various strategies, various assets, in order to choose the one that best suits the way we negotiate.
Disadvantages of a Binary Options Demo Account:
- The fact that there is no real money there, makes the trader less interested in a demo account when compared to one real account with real money. This means that you do not inform yourself, do not learn, that you do not train so effectively.
- In the Binary Options Demo Accounts, we are not afraid of losing trades. Soon we can operate without fear, without the emotion factor.
The day we open a real account and start trading with our money, things get different. There is emotion, there is the fear of losing.
And this fear of losing money can change everything we learned before in the Demo Account.
We can start trading in a different way, which means that the time lost in the Demo Account does not serve much.
- The previous two points lead to many times we have poor results in the Demo Accounts and we do not want to trade in a real account.
Or, on the contrary, we have sensational results in the Demo Account, and after opening a Real Account, the results do not appear.
- Although brokers say that demo accounts work exactly like real accounts, the truth is they are not exactly the same.
While the real account receives the market prices (so-called liquidity providers), the demo accounts receive these prices directly from the brokerage house, thus having a small delay.
The brokerage works this delay so that in case of doubt, in the Demo account the customer always wins.
This small delay of time improves the results of the real account, making a trader that in the real world have a small loss, in the demo has a small profit.
Binary Options Demo Account – Conclusion:
In my opinion, and I have been trading for several years, I think that when we want to try a new strategy, a new asset, or a new Broker, it is worth trying a Demo account first. However, it should be just to practice, to learn how the platform works and how the new strategy behaves.
The results, good or bad, are just tests. We should not give too much importance to the results obtained with a Binary Options Demo Account, whether they are very good, or very bad.
I think that if you are interested in trying binary options, you should open a Demo account to familiarize yourself with the platform, to practice. But after a few days, you should try a real account, because only with a real account will you actually learn, really understand if you can be a trader with positive results and understand how much you can earn if you are good at trading.
Most Regulated Brokers offer demo accounts: See the brokers table that offers demo accounts> HERE <
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