In forex, forex traders are given virtual practice portfolios to the extent that it is now taken for granted. Not many binary options brokers offer a free, unlimited binary options demo or trade platform for simulated trading. It is either the trader has to open and fund a live trade account in order to get one, or the trader has to make do without a demo platform altogether. This puts users in a very precarious position. A review of market information shows that most binary options brokers fall into the first category. The only broker which gives a free unlimited demo platform without the need to open a live account is Betonmarkets. There may be others out there in some unknown part of the world, but at the moment, we are yet to get information about any other binary options broker that provides a free, unlimited virtual account.
Well, the emphasis today is not on how to open a binary options virtual account, but on exactly what you can and should be doing with it if you have access to one.
So what can you do with a binary options demo platform?
Practice makes perfect, they say. The demo platform is where you are allowed to try out things, make mistakes and learn from them without any repercussions on your money. This is where you can make the first contact with the market to see if you are ready for live trades with real money.
There is hardly any endeavour in this world where practice is not needed. Think of anything you do as a human being. You had to test it out, make all the mistakes to be made before learning and perfecting the activity. It also took some time. The same goes for binary options trading.
Now because you are in practice mode, and practice is a simulation of the real thing, one thing you should do if your broker allows it, is to set your virtual platform opening balance to the same amount you intend to start open your trading portfolio with. It really makes no sense starting with a $100,000 virtual account if you are going to use just $500 to open a live account. Try as much as possible to simulate real money trade.
Success only comes with development of a good trading strategy and a live trader knows this. The only place to test-trade your binary options trading strategy without having to use real money is with a binary options demo. Not only will it help when developing a trade strategy, but a binary options practice platform will also enable the trader to tweak the strategy as appropriate.
Strategies can be worked on and perfected with a binary options virtual account. At the moment, there is no way to create EAs compatible with the web-based trading platforms we have out there. But there is the option of creating strategies on forex platforms and adapt these forex-related creations for use with brokers in the binary options market. This is especially important if you will be developing trade strategies for sale. This is a must-do for forex enthusiasts.
If you have mastered the art of trading the digital option market (step 1 above), then you can monetize this trade knowledge by either providing signals to others or by selling subscriptions/software to others. The number of people looking for successful trading strategies to follow is truly amazing. If you are successful, you can build a portfolio of simulated trades and use the trading history as proof of expertise. Pictures are worth more than 1,000 words. Try this out and watch your contact number become an international hotline, and your bank account experience a tsunami in a short time.
So don’t just think that the binary options demo account is a waste or is simply for free, simulated trade application. It is worth a lot more than that, so if you have one, make the best use of it today. If you do not have one, waste no time. Try to open one today with any of the brokers out there.