Binary options are traded in order to earn money, above all. You don’t trade them just because it’s exciting or because you don’t have anything better to do.
You simply want to trade profitably and go home with some profits. Of course, demo account offers do not exist in vain – at the end of the day, you want to gain some experience before handling for real money – but sooner or later you will need to trade for real money and strive for earning real money. This is called real money trading in the trading jargon. What is very much decisive is also the selection of brokers, before beginning with real money trading. There are of course many brokers for binary options in the market but only a few can be recommended unconditionally. One of the recommendable ones is 24Option, which is the oldest and the most successful provider for binary options trading. 24Option offers a free demo account too, for those who don’t want to trade for real money yet (which is very logical without a doubt). Click here to start with 24Option!
Starting with a demo account
Trading with binary options is of course much less complicated compared to classical Forex or CFD trading, but this does not change the fact that you still need to make a lot of practice. It works best with a free demo account where the account is filled with play money. In this way, it is possible to trade without any risk – it does not hurt at all if you lose.
You just need to take into consideration that with little money many things can go wrong with binary options. Even the brokers which are preferable for newcomers require $100 as minimum deposit but the options’ minimum values are $25 most of the time. That means normally you can get 4 options with your minimum deposit and if things go bad then the deposit is also immediately lost. Of course with these four options you have not learnt much either. When you have a demo account, usually thousands of dollars are credited to your account, with which you can then trade a lot. At most brokers it is almost impossible that you will go broke in normal time frames.
The conclusion is clear: Always start with a demo account before trading for real money!
Trading with €50, €100 or €250?
We would like to explain what trading with little money means as well. There is obviously a trend in “less is more” direction that means the brokers will one day allow the trading with very small amounts of money like a couple of Euros. At Forex, it was not possible to trade even with two digits contributions at the beginning; in the meantime, you can deposit as low as 5 Euro and can seriously trade with it – even if the returns are of course paltry.
At binary options brokers, the trend will develop the same. At the moment, the usual minimum deposit is €100, therefore as a trader you should define it as the trading with little money. €50 or less is not really common and if you don’t want to trade for more money anymore, the best is you should wait until you find the right broker where you can trade with such an amount. The problem, on the other hand is not the minimum deposit but the minimum options value, which is still at least €10. If a broker allows a deposit of only €25, you won’t achieve much with this options value. Because you can only trade two or three times if something goes wrong. It does not seem to be a meaningful trading!