Most new binary option traders are unsure whether they have what it takes to make money. Luckily, there is an easy way to find out: the IQ Option demo account. With the IQ Option demo account, you can test your trading skills under real trading conditions – for free.
Why you need an IQ Option demo
The IQ Option demo can help you overcome a simple limitation of the human mind: we tend to overestimate ourselves, often heavily. In an Australian study, researchers asked test subjects how good they are at work. The result: 86 percent of all workers ranked themselves above average, and almost nobody ranked themselves below average. In other fields, similar studies confirmed these results. We all think we are above average drivers, lovers, friends, etc.
Of course, this is ridiculous. We can’t all be above average. We are simply overestimating ourselves, often heavily. Psychologists call this phenomenon the self-serving bias – we constantly evaluate the world in a way that helps us feel better about ourselves.
When it comes to binary options trading, the self-serving bias can have excruciating consequences. Traders who overestimate their abilities might invest a lot of money in ideas they are unable to execute, losing money and ruining their financial future in the process.
There is, however, also the chance that traders who know about the self-serving bias give up on ideas they could execute because they think that their belief in their ability is the results of faulty logic.
Both options are equally tragic and you should avoid both. Luckily, there is a tool that is perfect to help you evaluate yourself realistically: the IQ Option demo account.
What an IQ Option demo can do for you
IQ Option is one of the few brokers that still offer a demo account. With a demo account, you can trade using paper money. Instead of risking real money when trying to figure out how good of a binary option trader you are, you are awarded $1,000 in play money to test your skills under real trading conditions but free from any risk.
We recommend to always test yourself with a demo account before you trade with real money. Even if you are completely sure that there is a pro trader inside you, testing the market before you risk your hard earned money on a hunch is always a sensible idea.
IQ Option is ideal for this purpose. Contrary to most other binary options brokers, IQ Option offers a real demo account. Other brokers only allow you to take a look at their trading platform, refusing to allow you to make test trades and evaluate your performance over a long period of time.
With IQ Option, however, you get a demo trading login. You have a real account balance, albeit with play money, you can invest your money like you would in real-life trading, and your account balance reflects the success of your trading.
Using an IQ Option demo account, you can easily estimate your potential as a binary options trader. After a few weeks of testing, your account balance has either gone up or down, and you know how well you trade.
How to get an IQ Option demo
The best thing about the IQ Option demo account is its easy availability. To find out whether you have what it takes to become a binary options trader, all you need to do is submit a short form on the IQ Option website. Follow the link we have provided for you, enter your name, your email, and your password, and you are good to go. There is no commitment and no hidden charges.
We recommend to give binary options a try right now – it is free and you have nothing to lose.
How to use the IQ Option Demo
After signing up, you can enter the demo-trading area. This is the same trading platform as you would see in real-life trading, and handling the platform is super easy, even for newcomers. All information is conveniently displayed and all buttons are easy to identify. Here is what you need to know:
- Account balance: The most important part of your binary option career is displayed to the upper right of your window. Since this is a demo account, the balance will show a balance of $1,000, but remember that this is play money. Keep monitoring your account balance, and you will soon know if you have what it takes to become a successful binary options trader.
- Asset tabs: To the left of your account balance, you see the tabs with your assets. Much like in a web browser, you can open new tabs to display new assets and close old tabs you do not need any longer.
- Price movement: Below the assets tabs, the biggest part of your window displays the price movements of the asset in your current tab. Prices are displayed as line charts.
- Time frame: With the menu at the bottom of your window you can adjust the time frame of your chart from 30 days to 2 minutes. While only short time frames are directly relevant to binary options, longer time frames can help you understand the big picture, pointing you to trading opportunities you would have been unaware of otherwise.
- Drawing tools: If you want to dive deep into the technical analysis of your asset, you can use the drawing tools at the lower left side of the screen to draw trend lines, resistance and support levels, and price channels.
- Market sentiment: At the left side of the screen, the ratio of red to green arrows tells you how many traders are currently investing in rising and falling prices respectively. This information is important for traders who follow a contrary opinion type of strategy.
- Investment settings: To the right of your screen, you can select the details of the option you want to invest in.
How to make an IQ Option demo trade
Step 1: Select the asset
To make a test trade with the IQ Option demo, you first open a price chart of the asset you want to use. Click the + symbol in the assets tab list and select the asset you like.
Step 2: Find a trading opportunity
Now monitor the price chart for a profitable trading opportunity. Your trading strategy will tell you what to look for. Use the drawing tools and the different time frames to help you with your decision. We generally recommend to start with a 30-day chart and work your way down to the time chart you want to trade.
Step 3: Invest
Once you have found a promising trading opportunity, use the tools to the right to create the perfect binary option to take advantage of the opportunity you have found. From top to bottom, select the time you want your option to expire, the amount you want to invest, and the direction you want to invest in. By clicking the Put symbol or the Call symbol, you complete the investment – your binary option is now active.
After you win an option, you are automatically awarded the payout and your original investment. To evaluate your long-term success, keep a close look on your account balance, and you will know how well you are doing.
IQ Option is one of the few brokers that still offers a free stand-alone demo. Most other brokers either offer no demo at all or require you to deposit multiple hundred dollars to use their demo accounts. In addition to the unbeatable availability, the IQ Option demo provides you with the full range of trading options and a sophisticated yet easy-to-use trading platform – the perfect environment to take your first steps with binary options.