A demo account is a type of trading account which is filled with virtual money provided by a broker to traders using its platform. With a demo account, you can make trades and do almost every other thing related to using a trading account, but you can’t withdraw the fund or whatever profits you make with the account.
Listed below are ways in which the demo account has proven invaluable to binary options traders:
To Practice Trading Skills
Pretty obvious, isn’t it? Of course it is. But that tends to be an under-appreciated fact. For newbie traders, the demo trading account gives you the opportunity to put to practice whatever trading knowledge you might have garnered. Here, you are trading real-life market situations but with fake money, without any risks coming whatsoever on your part. If there were no demo accounts, you will doing this practice with your actual hard-earned capital on the line.
To Test a Trading Platform
Do you want to trade with a broker but you want to have a taste of such a broker’s trading platforms? Well, there is no better way to do so than with a broker. With a demo account, you get to know how a trading works with the broker; the instruments that you can get to trade with the broker; how they arrive at important calculations, such as the value pips in dollars, or whatever currency your trading account is denominated in. With these, you can easily decide if the broker is worth the while or not.
Even as an experienced trader, you will still very much be in need of a demo account. From time to time, you will develop or come across new trading strategies, but you will need to test their effectiveness or profitability before you commit them to your live account. Your demo trading account gives you ample opportunity to do that without incurring any risks.
Similarly, there has been a proliferation of trading bots and automated trading systems all over the place. However, amongst them are a lot of scams and substandard trading system; and applying these systems to your trading account can harm you. You have to rest whatever system you desire to use before applying such to your live account. With a demo account you can test out whatever bot or automated trading system without any risks coming to you.
Binary options traders in Namibia can enjoy $10,000 free demo account that is provided by the following trustworthy brokers
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