Binary Options Demo Accounts
A demo account is a registered account in the traders name with full trading functionality. The broker credits the account with a fixed sum of fake money. Most online trading platforms, whether they be equity, forex, commodity based, offer demo accounts. The demo account helps a trader get accustomed to the layout and features of the trading platform as well as test out trading strategies without having to risk his own money.
Demo Account Limitations
Many binary options brokers place limits on the demo accounts offered to customers. Some limit the amount of time a trader can use the account while others place limits on the amount of “fake” money they can use. Most binary options brokers require the trader to make an initial account deposit before they can use the demo account. 24option gives traders an unlimited demo account after making a $250 minimum deposit. The trader is free to withdraw the deposit amount with no penalty if he is unhappy with his demo trading experience. A few brokers offer a truly free binary options demo account, whereas the trader receives a demo account without having to make a deposit. GlobalTrader365 offer a free 48 hour demo account without having to deposit funds.
Binary Options Demo Accounts VS. Binary Options Bonuses
Most binary options bonuses should not be confused with binary options demo accounts. Most bonuses require a deposit and the trader doesn’t trade the bonus money until he has traded his own funds. Of course the advantage of the the bonus is that it is real money and a successful trader can at some point withdraw these bonus funds. Demo money is completely imaginary. The initial demo money nor any resulting profits can ever be withdrawn. The binary options no deposit bonus is somewhat similar to a binary options no deposit demo account. Trader is credited with the bonus money before making a deposit and can make as many trades as he likes until the money is depleted. The big advantage to the no deposit bonus over the demo account is that it is possible after making an actual deposit and trading a certain to volume actually withdraw the no deposit funds and the resulting profits.