Many South Africans have recently caught a bug of online trading, be it in forex or binary options. Some are even using the platforms to trade cryptocurrencies like Bitcoin or Ethereum. At the same time the fact that many people also lose money by doing day to day trading is something everyone who attempts this kind of online activity should be aware of. In order to become a successful online trading, one needs a lot of experience and time invested into studying chart patterns and trading strategies.
In some cases, one will lose all the money before such experience is acquired. This is why all beginners should first get a demo account. Demo account is type of trading account that is not topped up by trader’s own funds – it contains funds that broker assigns it, and these funds are not real money, but virtual balances used for practise. Other than the fact that binary options demo account, or any other online trading account for that matter uses virtual money is the only thing that makes the difference to the real account. Everything else – the platform, the price quotes and tools are the same as if you were trading with your own money on a live account.
Binary options demo accounts in South Africa gained popularity with the introduction of no deposit demo accounts. Initially, many binary options brokers requested a minimum initial investment and a personal request to the account manager to enable access to a demo account on their trading platform. With increased competition and regulatory scrutiny, more and more binary options brokers joined their forex and CFDs counterparts in allowing customers to use their platform with virtual funds, without deposit, just by doing a quick registration. This has made life easier for many South African traders who were really interested into getting into online currencies and stocks based trading with binary options.
Most Popular Binary Options Demo Accounts in South Africa
There are many brokers offering their services to South Africans. As mentioned, they either offer trading forex and CFDs, or binary options. Some of the biggest names are IQoption, CMTrading, Plus500, 24option. Maybe the most interesting of these is IQoption since their demo account can be started simply by clicking the Facebook login button. After that, the trader enters trading platform which is in demo mode. IQoption will assign $10000 of virtual money to the demo account. Traders can then use these funds to use the platform and trade all assets offered as if it was real money.
Another advantage of their platform is the fact the platform does not allow only binary options trading, but also cryptocurrencies and forex as well as other equities, depending on the type of instrument selected. Other features of the platform – like training videos and trader chat are also available in demo mode.
The platform of IQoption is web based, but it can be also downloaded as an application on your computer in case browser version performs badly due to poor internet connection or some other reason. Traders can also use all the charting tools and indicators that are available to other traders. In case an even more professional setting is required, with the broadest set of tools and possibilities, traders can try a demo account with CMTrading, there they can use the coveted MetaTrader4 platform or the Sirix web platform which has integrated copy trader.
What is important to note in every case of the demo account is the fact that, even though all the parameters are same to the real trading, one thing is different. You will most likely be ready to invest more since its not real money. You investments with the real account might suffer from more psychological factor stemming from fear of loss.