Welcome back to our Guide to Binary Options! We know that by now you’re eager to start betting so, luckily for you, today we’ll be providing step-by-step instructions for creating a demo account. Demo accounts are offered by a lot of brokers, and mean that you can place bets and practice your fundamental and technical analysis skills without spending any real money.
Learning how to trade binary options successfully can be difficult. To develop the skills to be a wise and profitable trader takes time and, without a demo account, money too. Practising the analysis techniques we've shown you on a demo account saves a lot of frustration and there’s no risk to your own finances.
Types of Demo Accounts
Demo accounts can vary a lot from broker to broker so before signing up to anything, it’s good to understand what you’re agreeing to.
- Demo accounts that ask for a preliminary deposit
This is the most common type of demo account you might come across. These brokers insist that make a deposit before being granted access to your demo account. The amount you must deposit can vary between £20-250. Brokers like offering this type of account as the deposit shows that you have money to trade with eventually and that you are willing to spend it. Of course, it’s possible to withdraw your deposit after creation.
- Demo accounts that have a expiration date
This kind of demo account has a time restriction on how long you can trade for before depositing real money. With this type of account you have access to all types of trade but you can only use it for a set amount of time, often varying between 24 hours to a week.
- Demo accounts with no restrictions
These are the accounts that are most appealing to traders. They give full access to trading simulation without a deposit or a time restriction. These accounts generally require only simple registration with an email address, but can have a limit on how much virtual money is available to spend.
Binary.com is a great place to open a demo account. With it’s fuss free interface, setting up an account is quick and hassle free. Their accounts have no time restrictions or preliminary deposit and credit you with $10,000 of virtual money.
How To Sign Up To Your Chosen Broker
Once you've weighed up the pros and cons of different broker sites and selected a broker you want to use, you’ll need to sign up to begin to trade. Some brokers refer to demo accounts as ‘virtual trading’ or ‘virtual money accounts’.
Unless you've selected a broker who requires an initial deposit, demo accounts can be set up just by giving a few personal details such as your name and your email and then creating a password.
Check Your Statement
After you've created an account, it’s useful to check your account statement to see how much virtual money you have to trade with. Some brokers offer unlimited virtual funds, whilst some offer a set amount. It’s also handy to familiarize yourself with accessing your statement as this is where all trading activity will be shown and how you can keep track of your wins or losses.
Watch our handy step-by-step guide if you're still feeling confused!
The final step is to start trading! Demo accounts have no restrictions on what type of trade you make, so make sure you check out our Types of Trades article to see what you think suits you best. In our next article we'll be discussing what makes a good trader and how you can maximise success so make sure you check it out!
Other Articles In this Guide:
- Read Now!
- An Introduction
- Key Concepts For Beginners
- What Are Assets?
- Types of Trade
- What is Fundamental Analysis?
- What is Technical Analysis?
- How To Trade Successfully
- Trading Strategies
- Top Ten Broker Sites
- Industry Regulations
- Frequently Asked Questions
- PDF Download – The Complete Guide
- Presentation: Trading Binary Options — A Step-by-Step Guide