Once you have decided to give CFD / Forexs trading a try, the best thing that you can do is develop your skill by taking the time to practice using the Binary Options Demo Account that is available from most brokers. Looking for more information on a demo account? Here are some answers to your most pressing questions.
Are all demo sites the same?
No. They are three main types of demo sites that you will find. The first is a deposit based demo account, which are activated once a person has made an initial deposit of a minimum amount of funds into their CFD / Forexs trading accounts. By having this authentic interest in CFD / Forexs trading, it is possible to smoothly transition into real cash trading following use of the demo account, or to fully withdraw what had been deposited.
The second type of account is known as the deposit free demo account. On this type of account, a customer is not in any way obligated to make a deposit into their account to gain access to the demo account. The demo account is made available free of charge. These accounts are typically limited and have expiry dates.
The third type of demo account is the timed demo account. These are often operational for a maximum period of one month, and are put in place so that one can get a taste of what CFD / Forexs trading has to offer. Rather than being able to test out any type of strategies, all that one can do is get a basic feel of the site.
What happens when I open my demo account?
To begin with, you go through an entire set up process where you register your name and fill in your details as requested from a form. Once you complete this stage, then you are given your own username and password which you shall use to access your account. In adition, your demo account you are given a fixed amount of virtual funds. These cannot be cashed out. Instead, you use them to try out different types of trading, and possibly create some trading strategies while you do so.
Which assets am I able to trade using my demo money?
Normally, there are a minimum number of assets available, covering every type of asset that is available on the site. These include commodities, stocks, indices and currency pairs.
Can I get some more demo money when I run out?
This depends on the broker that you have chosen. On most of the brokers sites, once your demo money runs out, you do not get any more. However, there are some sites which will allow you to recharge your demo balance at one time every 24 hours. This is usually based on fulfilling some condition, such as the balance being lower than USD 1000.
Is there any real advantage to using a demo site?
Yes, there is. When you start visiting various CFD / Forexs trading sites you will realise that they are not all the same. The demo site gives you the chance to become familiar with the platform that is being used, and then when you start real trading, you will be able to navigate with ease.
If you are a beginner and determined to figure out all the ins and outs of trading, then you need to have a demo account on the site of your choosing. Use it diligently, so that you can determine what your style of trading is, and come up with strategies that will propel you to success and an excellent return on your investment.