Binary options are one of the fastest growing types of investments worldwide, and a demo is an ideal way to get started. To find the ideal binary options demo account, South African traders have a few things to consider. Learn about Binary options demo account South Africa here.
The main points South African traders have to consider are:
- Which currency should I run my account in?
- How can I find stocks that are easily tradable for my time zone?
- Can I use my unique position to make money by trading special currencies or commodities?
In this article, you will learn strategies to deal with each of these points.
Binary options demo account South Africa: What you have to consider
What one of the first things South African traders will realize is that many binary options brokers fail to offer the South African Rand as one of the currencies you can run your account in. We recommend using either Euro or US Dollar, as these currencies provide the most security regarding exchange rate fluctuations.
All of the brokers on our top list of the best binary options demo accounts offer their accounts in Euro and US Dollar. You can safely sign up with any of them. Whether you use Euro or US Dollar is your decision, neither option is inherently preferable.
South Africa is far from the binary options trading centers of the world. Most brokers offer stocks, indices, and currencies from Europe, America, and Asia, but not from Africa. To find a demo that allows South African traders to trade comfortably anyway, they have two options. Those options are:
1. Use a demo that offers a wealth of European stocks
While Europe is far away from South Africa, too, it is at least in a similar time zone. South African traders will find it a lot easier to fit trading binary options based on European stocks into their daily schedule than trading American or Asian stocks, which might require them to trade in the middle of the night.
To make good use of this advantage, South African traders need a demo that offers them a lot of European stocks. All three of the top-three brokers on our top list of binary options demo accounts fulfill this criterion. IQ Option, Banc De Binary, and 24option all offer the wealth of European stocks and indices South African traders need to trade binary options conveniently and effectively.
2. Use a demo that offers a wealth of commodities and currencies
Currencies and commodities can be an alternative to investing in binary options based on stocks. Especially commodities can be attractive to South African traders who live on the continent that has the richest commodity resources and might have some insight knowledge in how these commodities are supplied.
With binary options, you can turn this inside knowledge into money. Depending on the type of knowledge you have, you should trade it in one of two ways:
1. Trade short-term knowledge with short-term expiries: You know that there will be an announcement today that will influence the market heavily? Then use the shortest expiry you can to trade your prediction. If you know the exact time of the announcement, you could use an expiry of 60 seconds to 5 minutes, if you expect the announcement during a certain timespan, use an expiry of up to a few hours.
2. Trade long-term knowledge with long-term expiries. If you know that the production of a commodity will decrease or increase, you can trade the implications this knowledge has with long-term options, which offer expiries of weeks and months. To give fundamental factors enough time to affect the market, we recommend using, at least, an expiry of two weeks.
All of the three brokers we mentioned above – IQ Option, Banc De Binary, and 24options – offer short term binary options with expiries starting at 30 seconds and long term binary options with expiries of weeks and months. With these assets, you are in the perfect position to make the most of your binary options trading.
Similar to commodities, South African traders have a unique type of knowledge about currencies. Since currencies are always traded in pairs, any pair involving the South African Rand (ZAR) is an ideal pair for South African traders to use their inherent advantage. Many brokers offer the USDZAR pair, for example. If trading currencies is important to you, you might want to make sure that your demo offers the ZAR in some pairs.
South African traders face unique challenges due to their geographical position. With a demo that offers the right selection of currencies, commodities, and stocks, all of these challenges can be dealt with. Three demos that are ideal for South African traders are the IQ Option demo, the Banc De Binary demo, and the 24option demo.