Why trading with a Demo Account is Not The Same? Our Thoughts.

opening a demo accountNearly every binary options broker on the market has started offering their traders the opportunity to trade on their platform without using real money. And normally we are all behind that idea. It’s a great chance to earn some experience and feel less nervous about being out the and trade in the real world.

But very often trading too long on your demo account can be just as harmful as it was useful in the beginning. Why is that? Simply because trading using a demo account for longer that it is needed makes you develop poor trading habits and decreases your chances to succeed when you switch to the real money account.

Here are the top 3 reason for that:

1. Losing on a demo account doesn’t feel as painful as losing real money.

It might sound harsh, but sometimes to lose money is a positive thing for a newbie trader. It shows you that you are always vulnerable when trading on the markets. Of course, we are not suggesting blowing away all your money! But having some losses on your account occasionally remind you that markets are tough and you should always be cautious.

2. You are trading larger amounts of money on a demo than on your regular account.

When trading in a simulated environment, traders tend to bet larger amounts than they are able to in real life. Supposedly, it will make trading large amounts in your real money account easier for you. But the truth is that even if you have good money management strategies and are a careful trader, trading too much on a demo will make it tempting to chase your first big loss with a larger trade than you can perform.

3. You are more prone to overtrade on a demo account.

Demo accounts often tend to resemble real world trading but at reduced spreads. On a demo, a trader can be profitable at a .5 pip spread. But try that with real money you get eaten alive with a similar strategy at a 1.3 pip spread. Thus, demo makes overtrading easy, especially for the novice traders.

confused trader

Making The Best Out Of Your Demo Account.

But should you avoid demo accounts altogether? No, not at all! Demo trading is a great way to practice for a while. But don’t get carried away! Trading for a long time without any risk attached to it is pointless. Eventually, you need to switch to the real money account. Even with a small amount of money (or even just a minimum deposit), you will experience trading from the whole new perspective.

Frankly, this is because some amount of risk is a trader’s friend. It keeps you focused and present. This isn’t by any means something new, but sometimes we need to be reminded of it.

So make sure you’re using your trading demo account during a reasonable amount of time, and then let it go and trade with real money. Because that’s when the real fun begins!

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Macron is the French president! What Does it Mean for Binary Options Trading?

Macron and euroThese recent weeks has been really tense as pro-EU centrist Emmanuel Macron was running against anti-EU populist Marine Le Pen. At the end of last week, EUR/USD reached 1.1000 for the first time since November 9th last year – the day of the US presidential election.

On Sunday, Europe celebrated Emmanuel Macron’s victory in the French elections over Le Pen and it seemed we had our happy ending. But as we moved into the new week, there has been one unexpected development: Euro noticeably weakened and started losing its positions. Why is that and what does it mean for binary options traders?

French elections aftermath and the positions of Euro.

One thing that is important to understand in this is that it’s not that the Euro itself that is relieved. All the controversy that lead to this belief is convincing people to believe otherwise, but the French election result did not lead to the Euro becoming weaker. It is rather that trading markets had correctly predicted the results of the second round of the elections before the official result has been announced, so there isn’t anything to react to after that. The results were well predicted and did not come as a surprise (unlike the other elections result last year that did, in fact, resulted in some heavy turbulence on the trading market).

Now that we know that the results were fully predicted, it is also easy to understand that media lead us to believe the rumor that this outcome for the Euro was provided and is somehow unexpected. Considering the drop in short-term volatility measures between the first and second round, this is a normal situation and nothing to be concerned about. After the first round of the elections, EURUSD implied volatility sank to 7.47% after 13.45% on April 17. This is a rapid change but it was very well predicted by many experienced traders.

Also, for the past twenty years, May has always been the second worst month of the year for EURUSD rate and this pair has traded lower every May for the past seven years. So no election result should also be of any concern when it comes to analyzing the current situation. At the moment, traders should certainly keep an eye on the USD during the next few days as DXY Index has bled through two major support levels very quietly for these past days.

All in all, it seems like the French election outcome will in no way affect the usual way of thing on the binary options market. So traders can go back to their trading keeping this in mind and not buy in any media nonsense that has been going on or change their trading strategies in any radical way.

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Option Robot$20091%Open Free AccountRead Review
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Binary Options Brokers Offering Demo Accounts

demo newsWhen choosing a binary options broker, one crucial step is trading first with a demo account. A demo account helps a new trader to understand whether the broker’s trading platform is user-friendly and easy to use, responsive. Feeling that you are comfortable trading on this particular platform is very important to your overall success.

Fortunately, there are quite many binary option brokers on the market offering such a possibility. A smart trader that takes his investment seriously would always open a demo account first, simply to make sure that the system is easy to use and suitable for him.

However, there are many brokers out there that for some unknown to us reason do not offer demo accounts to their new traders.  It is quite a mystery to us why these brokers do so, perhaps it’s too complicated or some just don’t want traders to see what is inside before they already sent them their money. Instead of investigating their reasoning, today we would like to discuss the brokers that do a binary option demo account.

Brokers offering a Free Demo Account

iqOption LogoIQoption

This broker came to the market back in 2013 and quickly won over the attention of traders with its spotless support and low minimum investment conditions. It is one of our top recommended brokers and we highly recommend you try their demo account.

HighLow LogoHighLow

It’s a superb binary options broker for Australian, African, Middle Eastern and European traders. Simple to use, with no mind-boggling of pointless features, it’s straight to the point with its free demo account and great choice of assets.

What to look for in a Demo Account?

If you already opened a free demo account, here are the things you want to check out before investing your money:

  • It is easy to use both on your computer and mobile devices;
  • Trades are done fast and without any “bugs”;
  • They offer many different assets to trade;
  • There are also different types of options (5-minute, 60-second, long-term, etc)
  • The customer service is helpful and fast.

If all of these things are in place, you can safely choose this broker. Make sure that you are perfectly comfortable trading on this platform, and your trading experience will be way better than with just a random broker. Happy trading!

Trade now with our recommended Binary Options Brokers.

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Min. Deposit
Max. Returns
  
Option Robot$20091%Open Free AccountRead Review
IQ Option$1092%Open Free AccountRead Review
24Option$25089%Open Free AccountRead Review
Finpari$25090%Open Free AccountRead Review
All brokers >>

TOP Regulated Binary Options Brokers 2017

There are many ways to call them: licensed, authorized, regulated. Whatever term you prefer, those are definitely the brokers you want to keep an eye on.

At the moment, there are around twenty binary option brokers that are regulated by the Cyprus Securities and Exchange Commission (CySEC). Since Cyprus is one of the European Union members, its license is generally accepted by other EU countries. Australian brokers are licensed by the Australian Securities and Investments Commission (ASIC).

NB! No traders from the USA are accepted by CySEC or ASIC regulated binary options brokers.

Let’s look at some regulated brokers that have proven to be a good choice for our traders over the years and are our TOP choice in 2017!

TOP Regulated brokers

24option broker Review24Option is regulated by CySEC (license #207/13). Since its establishment, the broker won numerous awards such as Best Binary Options Broker 2014 award, Best Binary Options Broker 2015 award and Most Innovative Broker 2015 award. Read the full review here.

HighLow broker LogoHighLow is regulated by ASIC Australia (license #364264). Since its foundation in 2014, this is one of the best brokers for the Australian, African, Middle-Eastern and European options traders. Read the full review here.

bdswiss logo broker

 

BDSwiss is regulated by CySEC (license #199/13). One of Europe’s largest binary options brokers and also one of out readers’ top choices. Read the full review here.

 

AnyOption brokerAnyOption is regulated by CySEC (license #187/12) and by FSB in South Africa (registration number FSP 42020). Established in 2008, it was one of the pioneers in the industry. Read the full review here.

Choosing the Right Broker for You

Even though selecting the right broker for you is only half-way to success, it’s already a very good start. By carefully studying reviews and signing up with a regulated broker that matches your need, you are already doing a lot for succeeding in binary options trading! Consult the full broker list below.

Trade now with our recommended Binary Options Brokers.

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Min. Deposit
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Option Robot$20091%Open Free AccountRead Review
IQ Option$1092%Open Free AccountRead Review
24Option$25089%Open Free AccountRead Review
Finpari$25090%Open Free AccountRead Review
All brokers >>

Japanese Binary Options Volumes Reported to Rebound in January 2017

The Financial Futures Association of Japan (FFAJ) has published a report announcing the official figures of the last month of January for its over-the-counter binary options. It showed an excellent elevation point for Japanese binary options industry that gone back to the strong trading volumes of January 2016.

Looking at the graph below, one can see from the statistics data that in the beginning of 2017 Japanese binary options market maintained the positive trends of 2016 and it kept the up and down trend that started at the end of last year. In 2016, November was a volatile trading month that reflected turbulent events around the world.

Japanese trading volume 2016-2017

Making conclusion from these figures, the FFA had its total trading volume result in $369.8 million this January, which is an increase of 2% since December 2016. But overall, since the same time last year the decrease is about 33% which is rather a lot. But the figures are showing steady growth and there’s a hope of them reaching that high number again very soon.

Check out our 24option Review!

Trade now with our recommended Binary Options Brokers.

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Min. Deposit
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Option Robot$20091%Open Free AccountRead Review
IQ Option$1092%Open Free AccountRead Review
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All brokers >>

Can European Brokers Association change binary options industry?

European Brokers AssociationTo reflect the growth of the binary options industry, some of the largest organizations in the market have come together and decided to cooperate. In September 2016, they formed EUBOA – The European Brokers Association. Among its members are the top regulated brokers that are highly ranked by traders all around the world.

EUBOA is an organization that aims to become one of the biggest influencers in the binary options and Forex trading market. But what challenges does it have and how can it influence the current state of affairs? Let’s find out.

European Brokers Association

Comparing to other forms of investment, the binary options industry is still in its development stage. This has led to many changes and challenges for the well-established brokers and the market in general. With the aim of regulating the way the binary options trading is growing, the major participants have created The European Brokers Association.

Brokers that are members of the Association:

As you can see, the members are really some of the major players. In addition, only regulated brokers can request the membership status. This is done to assure the quality of discussion within the Association and secure reputable voice behind any of its decisions and actions.

What are the challenges for the Binary Options Industry?

Despite growing fast and gaining a lot of recognition from traders, the binary options industry also faces some challenges that EUBOA is aiming to solve. Some of these challenges include:

  • Misleading marketing. Many unregulated brokers and other players in the market position binary options trading as “easy-to-get-rich” activity. As more experienced traders know, binary options can be profitable and extremely positive, but it also requires some knowledge and effort.
  • Regulations leading to negative results. Lately, some European countries imposed regulations on advertising or even banned binary options trading. While it is possible it was done with good intentions, more often than not it makes the situation worse. For instance, the ban on binary options in Israel and Belgium only led to more unregulated brokers coming to the market. So instead of “protecting” traders by making it impossible to trade with a licensed broker, it is important to urge countries to put their efforts into regulating the industry.

Those are just some of the challenges that major figures in the industry are trying to overcome. And EUBOA is aiming to help them do this with its activities.

European Brokers Association Agenda

During its second meeting since the formation, the Association has issued the manifesto of the organization. Its main goal is to decrease the number of malpractices that put traders in danger and encourage positive rather than restrictive regulation of the binary options industry.

One of the main goals of the Association at this point is to establish strong partnership relations with European regulatory bodies and open a constructive dialogue that will benefit both parties. EUBOA believes it will improve the situation on the market and assure positive long-term development for the binary options industry.

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Min. Deposit
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Option Robot$20091%Open Free AccountRead Review
IQ Option$1092%Open Free AccountRead Review
24Option$25089%Open Free AccountRead Review
Finpari$25090%Open Free AccountRead Review
All brokers >>