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Former Prop Trader now trading from home and loving it! Focused on junior miners, bio-techs and anything with some volatility!
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  • Binary Options Demo Accounts - Rare But Useful 0 comments
    Mar 14, 2013 12:55 AM

    The Binary Options Index - Binary Options Demo Accounts

    As with anything new and seemingly complex, people always want the same thing, that being a demonstration or the ability to 'test the waters'. The Binary Options industry is no different and as the interest in binary spreads around the world, the number of people seeking demo accounts continues to rise as well. However, despite the interest, there are very few brokers who are able to offer these demo accounts to interested traders. For reasons unknown to many, these binary brokers have chosen to restrict demo accounts for their binary options trading platforms. Whether it be to get you in the door with real funds or to mask the fact that trading binary options really isn't as easy as one, two, three, the search for a binary options broker who offers a demo account can take some time.

    Put yourself in the binary broker's shoes for a moment. You have hundreds, possibly thousands of people inquiring each day on a multitude of topics. How do I do this? Where can I find that? The hardest part of this entire process for the broker is to break down all of these inquiries and attempt to establish a list of people actually interested in trading and those who are just looking for a free hand out or demo solely for the sake of putting all of their funds in one position and seeing if 'trading' is for them. Granted, this oversimplifies many of the requests but it really comes down to the basics. Who is actually interested and who isn't? If binary brokers offered demo accounts to every single person who asked for one, there would be massive numbers of people signing up, throwing their entire demo funds into a couple of trades and logging out only to never take their interest in trading any further. Think of the play-money accounts in online poker rooms or casinos. When the funds aren't real, the activity at hand is not taken seriously. Brokers know this and as such, have chosen to restrict access to binary demo accounts. That's one of the possible reasons.

    The other could be the fact that a demo account would allow a trader the chance to trade without any real understanding of the markets. This trader could lose the demo funds, lose interest and walk away after a couple of bad demo trades and the brokers don't want to see that. So, the answer there is to restrict demo accounts and coax people into small deposits and a slow start while they learn the basics. Whatever the reason behind the decisions, the vast majority of the brokers do not offer demo accounts.

    There are of course exceptions to the rule. There are a few brokers who will grant a new trader a demo account but there's a catch. These brokers will have the interested trader deposit funds into their actual account prior to granting them access to a demo account. There are three brokers who offer these 'deposit first' demo accounts and you can read more about them on our blog or by clicking the above link if you're interested.

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