Binary Options Demo Account


Learning to trade binary options on a live account risking real money isn’t a very good idea. Binary options aren’t gambling and they should only be traded using a profitable trading strategy.

But how do you know if your strategy is profitable? Well you need to choose a broker that offers a binary options demo account and test it out.

That way you can test your strategy without risking any real capital. Successful trading is all about having the confidence in your strategy. You need to know that when times are bad and you go on a losing run that your strategy is fundamentally sound and shouldn’t be deviated from.

Also no strategy is perfect; they can always be improved upon. So using your demo account to improve your strategy will ultimately improve your profitability as well.

Unlike traditional retail brokers, demo accounts are not typically included with most binary options brokers. This is no doubt because most binary options brokers are quite small and running a demo account requires a lot of resources.

But there are a few brokers that have made the investment. Personally I think access to a demo account is vital for any broker. They’re such a fundamental part of trading that not including one seems a little remiss.

It’s also a good way of establishing whether a broker is trustworthy or not. A broker that’s only interested in taking money off you isn’t going to be interested in teaching you how to trade properly. So providing tools to help improve your trading isn’t going to be uppermost in his mind.

Before I go on I want to establish what I mean by a demo account. A demo account isn’t a demonstration of how binary option trades work; a lot of brokers provide this service. What I’m looking for is a full service platform that mimics the real platform in every way so that you can make real trades without risking any capital.

So which broker offers the best binary options demo account? Well I’ve searched through a lot of binary options brokers and found full service demo platforms thin on the ground. I’m sure this will change as more mainstream brokers start offering binary options. But I did find one broker that offers an unlimited virtual platform and accepts US Residents.

4XP

4XP Platform

 

4XP is a Forex broker that also offers binary options in Forex, limited US stocks and commodities. There is no sign of any indices as yet but I’m sure they’ll soon be available; they are after all the most popular underlying assets for binary options traders.

If we ignore the rest of the platform and concentrate on binary options you’ll find an easy to use platform that offers High/Low, One Touch and Boundary options. It’s a web based platform that’s accessible from anywhere including your iPhone.

It can be translated into 10 different languages including Spanish, German, Portuguese and Japanese.

Their profit rates are quite high but this must be offset against the fact that they don’t offer a refund rate, which would make trading with them significantly more expensive than some other brokers. But since we’re only using them to test our strategy, the cost of trading is irrelevant. You can always move to another broker once you have perfected your strategy.

Overall they’re a good broker but the limited underlying markets including a lack of indices means I can’t recommend them as binary options broker. But they are one of the few brokers that allow you to trade binary options without risking any real capital at the moment.



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