If you are new to Binary Options Trading, the tendency is to jump straight in and trade with real money.

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Stop, pause and don not do this. Our advice is do not trade live for 2 or 3 days and place at least demo trades first.

If you do trade live with real money, the likelihood is you will lose and be wiped out before you start. This is a scenario we want you to avoid at all costs so please heed our advice. A demo account can give you many advantages as a trader.

It provides a no risk way for you to begin trading with a new broker and test out new theories in the marketplace. Even if you have been trading for years it is still a good discipline to demo new strategies and theories. This is life long learning and never stops.

Trading in any capacity can be tough, but using a demo account will give you an extra edge when it comes to making more money. The assets and the platform remain exactly the same. The only difference is that when you trade with a demo account, you are not risking real money. This is something that every trader needs to take advantage of. Believe it or not, many people lose money because they are unfamiliar with how to use the software that their particular broker uses.

This does not need to happen, however, since it is really easy to avoid. The better prepared you are to use the software, the more mechanical things will be when entering a trade. This prevents you from truly testing out a new trading method over the long term, but it does give you the opportunity to do some short term exploration on how your trading will look over the course of a few days.

You will be able to try the new theory out and give yourself a clear picture of how to actually execute the trades that you are supposed to.

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Demo accounts are free to open. You do—in most cases—have to open up an account with the broker and make a minimum deposit, but there is no cost to actually demo trade. Demo accounts do have a distinct downfall.

Most brokers will only allow you to demo trade for an average of three days. This is true even if you are trading 60 second or two minute options. Anthony Stone first traded sports spreads in and in started trading binary options. After having made every mistake in the book and then some he searched for professional to help him become an effective trader.

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