Trading first with a binary options demo account is an important part of choosing the best binary options broker. A demo account is a way to see if the brokers trading platform is easy to use, responsive, and a place where you feel comfortable trading.
There are quite a few different binary option platforms out there, and a smart trader will open a demo account first, just to make sure that the system is easy to use.
There are many brokers that for some reason do not offer demo accounts. Why don’t they offer a demo, we have no idea. So instead we will focus only on the brokers that offer traders a binary option demo account. The size of the demo account really means nothing, so a broker offering a $50,000 demo account is the same as a $100 demo account.
The purpose of a demo account, is simply to test the brokers platform, speed of execution, quote responsiveness, and your trading abilities.
Comparing Demo Accounts
Here is a short list of important things you should look at in your demo account.
- Ease of use on Desktop & Tablet
- The speed of trade execution.
- The variety of assets to trade.
- The different types of options; 5 Minute Options, 60 Second Options, Long Term, Range, etc.
- How the customer service reps and brokers answer your questions.
Free Binary Options Demo Accounts
IQ Option (read review) has their own custom made trading platform with free demo accounts, which is very popular among traders. They also have the IQRobot which is an advanced trading robot, visit IQoption.com.
Nadex (read review) is the CFTC licensed and regulated exchange in the United States, and as an American binary options broker they encourage you to start trading in demo mode first, see: http://Nadex.com.
Not Free Demo Accounts
Every binary options broker says that they will give you a demo trading account. The problem is that most of them want you to first open a real trading account, and deposit money there before they will activate the demo account for you.
The reason brokers do this, is because they trading systems were not designed to operate in Demo Mode and Real Mode. So when they give you a demo account, it is really just another real account where they deposited play money into it.
If after trying the various free demo accounts from the brokers above, you are still not happen when their trading platforms, then you will need to talk with your broker, and try to get them to create you a demo account on their system.