For traders, a free demo account makes a lot of sense. You get to try the trading platform, or a mobile demo app, at no financial risk. Brokers should also be proud to show off their platform and customer service, so traders should be able to use a demo account without deposit and with a simple sign up process.

Likewise, as a prospective binary options trader, the demo account gives you the opportunity to put the platform to the test.

Does it work? Can you make sense of it? Does it feel right? These are the questions you need answers to before you hand over your cash. Here, we take a close look at binary options demo accounts; how they can help you and what to look for as you decide whether to move on from the demo to the real deal…. Losses and gains are credited to this virtual, dummy balance.

So is it always safe to sign up? At the very least, the process tends to involve submitting your email address and specifying a user name.

What can you glean from independent reviews of the site? Where is it based? What do actual users have to say about it? Be especially wary if the demo sign-up process takes the form of a data-mining exercise — i. if you are encouraged to provide large quantities of personal information. At heart, binary options demo accounts provide the chance to test-drive the platform.

So here are the areas to focus on as you put the platform through its paces…. As such, it should ideally be fully representative of the live platform in terms of access to all features. A demo account allows more than one platform to be compared. This is useful both for the novice trader, but also for more experienced users looking to ensure they are trading with the best provider.

It is of course, possible to have accounts with different brokers to ensure the best payouts on specific assets and trades. The idea behind most demo accounts is that you see the results of your simulated trading activity reflected in your virtual balance. Likewise, if the live account features a returns slider, that slider should work in exactly the same way on the demo as on the real thing.

As a novice in this area, you may be weighing up binary options alongside other forms of trading. News Earnings. Retail Sales.

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Although the potential for profit is great, binary options are unpredictable. Using the right software can give you a significant edge. Tim Fries is the cofounder of The Tokenist. He has a B. in Mechanical Engineering from the University of Michigan, and an MBA from the University Meet Shane.

Shane first starting working with The Tokenist in September of — and has happily stuck around ever since. Originally from Maine, All reviews, research, news and assessments of any kind on The Tokenist are compiled using a strict editorial review process by our editorial team.

Neither our writers nor our editors receive direct compensation of any kind to publish information on tokenist.

Our company, Tokenist Media LLC, is community supported and may receive a small commission when you purchase products or services through links on our website. Click here for a full list of our partners and an in-depth explanation on how we get paid. Unlike regular options, binary options can only result in one of two outcomes—either you profit a set amount, gain nothing at all, thereby losing your entire investment. Compared to vanilla options, binaries are much simpler.

So, with all of that in mind, how do you get an edge? There are two main reasons why this is, bar none, the most important thing when trading binaries. The binary options space is densely populated by scams, frauds, and all plain old bad services. Plus, on top of that, which legitimate ways you can trade will depend heavily on your place of residence. First on our list is Nadex—one of only two CFTC regulated U.

With a transparent fee structure, good educational sources, and low fees overall, Nadex is a strong presence in the binary options space. It also offers quite a wide array of assets to trade. Founded in Chicago in , Nadex is an exchange that is specifically tailored toward binary options.

As a CFTC-regulated entity, it boasts impeccable security and has to meet a variety of stringent regulations in order to safeguard investors. traders, Nadex is also available in a variety of other countries, including the UK, Japan, Switzerland, South Korea, South Africa, Germany, India, New Zealand, and Cyprus.

Opening an account is quite simple—the signup process takes about 5 minutes and requires proof of address and proof of identification. There is no minimum account deposit associated with this service. Speaking of accounts, Nadex offers four account types: individual accounts for U. customers, individual accounts for international customers, demo accounts, and business accounts for U. The desktop platform is responsive, well-designed, and quite customizable. It supports a good amount of drawing tools and technical indicators, as well as customizable charts.

The platform also supports watchlists, daily market commentary from in-house experts, and video content. Unfortunately, binary options mobile apps are currently banned in the U. Nadex also has plenty of well-produced educational content—especially when it comes to binary options.

As far as tradable assets go, you can buy binary options for stock indices, forex currencies , commodities, and news events. All in all, Nadex has quite a few things going for it —and a very limited number of small issues—primarily the antiquated fees and the lack of mobile app.

Binarycent was founded in in the Marshall Islands. Although it lacks the strong regulatory licenses of Nadex and Cantor, it is regulated by a government agency—the Vanuatu Financial Services Commission VFSC. First things first—this platform is available to traders outside the U.

Although the brokerage is user-friendly, accessible, and affordable, one thing stands in the way of it being catered to beginners—and that is the lack of educational content. The only thing that is offered are relatively simplified explanations of basic terms relating to binary options trading. On the other hand, this flaw is somewhat remedied by the fact that clients can make use of the copy-trading feature to mirror the trades of more experienced investors.

Binarycent supports three account types—bronze, silver, and gold. The silver account gives you access to an online class, as well as three trades that are going to be refunded if you lose money. The gold account, on top of all of that, gives you access to a personal success manager. As far as bonuses go, Binarycent is a mixed bag. Sure, the bonuses are appealing, but they come with a pretty strict stipulation—if you decide to make use of them, you can only withdraw after a turnover that is 3 times larger than your initial deposit plus your bonus.

It also supports both traditional charting and Japanese candlesticks and offers tips of technical analysis, chart patterns as well as a news section. The proprietary web-based platform is user-friendly, intuitive, and also supports a copy trading feature, which goes a long way in making the broker more user-friendly overall. Established way back in , Binary. com is an online brokerage that has managed to cultivate a user-base of over 1 million registered traders.

They also offer various payment methods, a large range of tradable assets, and an unbeatable variety of trading platforms. One of the things that set Binary. com apart from the competition is the sheer variety of regulatory licenses.

They are regulated by the financial authorities of Malta, St Vincent and the Grenadines, Vanuatu, and the British Virgin Islands. Once you sign up, you can immediately make use of the demo account.

We heartily recommend trying out trading with virtual money first before making a final choice. This requires proof of identity, proof of residence, and the process takes around 24 hours. Once that is done, the only thing left is to fund the account, and Binary. The most notable feature of this brokerage is the variety of platforms that are afforded to customers.

Clients can make use of the SmartTrader, WebTrader, Binary Bot, MetaTrader 5, and Deriv platforms—all of which support binary options trading, apart from MT5. In particular, the WebTrader boasts powerful charting and drawing tools and is quite customizable.

Established in , IQ Options is a platform that is regulated by the Cyprus Securities and Exchange Commission CySEC. Since then, the platform has become hugely popular—and currently has over 50 million registered users, on top of handling more than a million transactions each day.

Specifically, traders from the U. IQ Option offers clients access to an award-winning proprietary platform that is available in 13 languages. The platform is quite powerful—featuring an intuitive design, plenty of useful charting and drawing tools, and a variety of technical indicators.

One of the advantages of IQ Option is that it offers access to a lot of tradable assets other than binaries.

This level of accessibility goes a long way in making this our top pick for beginners. As far as account types go, IQ Option has two—a standard account and a VIP account. RaceOption was founded in , and the London-based broker currently manages more than 10, trades daily and has a little over 1, active traders. The highlight of RaceOption is how accessible it is—traders from the UK, Australia, and Canada can use this brokerage to trade binary options. Although the brokerage does support U.

clients, opening an account might be in violation of U. Although it is based in London, the company is a subsidiary of Finance Group Corp and Suomen Kerren, both of which are registered in Vanuatu. One of the areas where this provider shines is the sheer variety of funding and withdrawal methods.

As far as funding goes, RaceOption accepts deposits made via Visa, MasterCard, cryptocurrencies such as Bitcoin and Ethereum, and even some altcoins. RaceOption supports three account types—the innovatively named bronze, silver, and gold account. To actually get to the bottom of that puzzle, you need a good overview of what factors make a good broker or exchange so you can compare all the possibilities in earnest. To put it in the simplest terms possible, binary options trading software is what gives you access to the binary options market.

This software can either be from a brokerage, which gives you access to an exchange, or from an exchange itself. Seeing as how this is the only way to trade binaries, finding a good platform is non-negotiable. However, not all of these pieces of software are alike—the difference between a good platform and a bad one is quite stark. To begin with the basics, not all platforms are available globally. And if you want to have any success at trading binaries, you have to pay attention to other factors such as research, educational materials, and execution speed.

Without these two factors, even the best platform in a technical sense is a non-starter. However, if those two conditions are met, the fact remains that not all binary options trading software is made equal. There are a variety of options, each with its own pros and cons. Binary options might seem simple at first glance, but you need a pretty thorough knowledge base, as well as a keen understanding of market conditions to reliably secure your gains.

Educational materials are the less important of the two. Binary options are traded in the short-term—the tenor or expiration date of most binaries is usually one week at the high end and could be as short as 10 seconds in the case of certain highly-specialized software providers.

No matter what timeframe you intend on trading at, the reliability and speed of your chosen platform will be crucial to success. How fresh the information you have access to via a platform plays a very important part in pulling off winning trades.

As usual, real-time market data is the best possible scenario—and quite a few exchanges do offer this to clients free of charge. Even so, a wide range of assets that you can speculate on is an important feature. Firstly, more variety equals more potential opportunities in total and allows you to regroup and go in a different direction if your option trading hits a snag with a certain asset class, such as stocks or ETFs. Secondly, you might already be familiar with certain asset classes due to past experience.

If that is the case, forming a workable hypothesis regarding how the market will behave in the short term will be much easier for that asset class. If you can find a platform that supports binaries of your preferred asset classes, all the better. The fact that an exchange might be available to you does not automatically mean that it is accessible to you.

Ideas Trade Ideas. This encourages traders to use the platform more, but also aids the broker in converting those demo account holders into real money users. As far as funding goes, RaceOption accepts deposits made via Visa, MasterCard, cryptocurrencies such as Bitcoin and Ethereum, and even some altcoins. All reviews, research, news and assessments of any kind on The Tokenist are compiled using a strict editorial review process by our editorial team. Without these two factors, even the best platform in a technical sense is a non-starter.

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