Nearly 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.

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!

Trade now with our recommended Binary Options Brokers.

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These 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.

Trade now with our recommended Binary Options Brokers.

Trade no now with Binary Options Robots

	Min. Deposit	Max. Returns
	$200	91%
	$10	92%
	$250	89%
	$250	90%
				All brokers >>

When 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

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

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.

Trade no now with Binary Options Robots

	Min. Deposit	Max. Returns
	$200	91%
	$10	92%
	$250	89%
	$250	90%
				All brokers >>