Cons and Pros of demo trading
You do not know how the broker’s platform works? You are not sure whether your new systen is working or not? Then a demo account can be the right thing for you. Before you jump into the market you should practice at first. Trading Binary Options is risky and a small error can blow your account.
Demo Account: Where Can You Get One?
Some brokers offer them, others do it not. The ones who do not offer them might give you different sorts of bad reasons for why they do not "offer" you a demo account. E.g. "it will slow down our servers". Making a lot of money every day the guys can not afford to rent some more servers? Sometimes you can convince them to offer you a demo account if you keep insisting that you need one.
Anyway we personally believe that if you choose a broker and make the minimum deposit and they encourage you to only demo trade before you trade your live account then you have chosen a good broker. However they should also let your first withdrawal be free so if you have enough demo trading and do not want to trade anymore or do not like the broker you should leave without any charges. It would be good if the demo account has no time limit so you can patiently test the platform and try different systems as long as you desire. You should beware of money limits because that is a common way for brokers to make you deposit more real money in order to get more virtual cash for your demo account when the initial amount is depleted. You still need to apply money-management so you can keep the demo account running as long as possible.
Demo account: Do you have unlimited benefits of it?
Perhaps you did not expect this but even demo trading has its drawbacks. You will never have the same feelings towards trading demo money like the feelings which you will have trading with your own money that you have worked hard for. The level of stress can be significantly different by trading a live account and change everything: one moment of hesitation and you will execute a trade too late or too early and it will turn out totally different than it would have be on a demo account. When you are trading on a demo you are relaxed, confident and have no attachments to the virtual cash money. To experience the real feelings one day you have to quit demo trading.
We remember a period during which we both traded live and on a demo, we ended up taking most profitable trades on the demo and losses on the live account. Because we hesitated when we took trades on our live account, got in too late, closed trades early because of fear of losing. On the demo we were confident. Our system said go up so we took calls. Our system said down we took puts. No hesitation, no stress. Hence leading to a higher success rate on the demo. It was not until we completely switched from demo trading to live trading that we became confident and honed our skills.
Conclusion: Warm Yourself Up With Demo Training
Trading skills are gained through training and training can be a help for you to learn if trading is right for you. A demo account will give you a chance to find out whether trading is something you really want to commit to. Before you make a deposit with the broker of your choice always ask them about demo accounts and find out what their terms and conditions are and how you can get one. Just have in mind: demo trading alone is not enough because one day you have to get out of the virtual market and get into the real one.