Category Archives: Binary Options Brokers

These rowers practice for hours in order to pull the oars in synch

Is Demo Trading Worth It

My Answer To The Question, Is Demo Trading Worth It?

I have to say that yes, demo trading is worth it. It is the best place to get real world trading experience and a tool I still use today. Yes, the giant of technical analysis and trading that you see before you is indeed a demo trader. I do it for a number of reasons but the top of the list has to be for safety. Demo trading provides a level of safety for my real-money account that you just can’t get anywhere else. Why is this? It is because I know better than to experiment, test or make wild speculations with my real money. Having the demo account provides a place for me to make those trades that don’t fit my general strategy thereby providing a layer of protection from the market and from myself.

Practice Makes Perfect

There are a number of reasons why demo trading is important. For a newbie it is important because it is where you learn the mechanics of trading. Trading demo answers a lot of questions, questions like what is a position, how to you buy it, what does it look like when it’s open, what does it look like when it is closed, how does money management work, how does money management affect my trades and many many other questions a newbie or inexperienced trader may have.

  • Look at the picture above. I choose this one because it is a great example of how demo trading can help you get in synch with the market. How  many hours of practice do you think these guys put in to be competitive?

Once the mechanics are learned, the demo account does not lose its importance. It also provides a training ground and launch pad for trading real money accounts. The novice trader can use the demo account to practice strategies, learn and study the market until they know it inside and out. A friend of mine, Okane, recently said something that I have found to be perfectly true. Trading the demo account, and studying the market, can help you develop a kind of sixth sense that will lead you to more profitable trading.

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That is another top three  reason why I like demo trading. It helps you get in tune with the market. I can readily admit that I am not always in tune with the market. Sometimes I have winning streaks, sometimes I have losing streaks. The demo account helps because when I realize I am on a bad streak, or just out of tune with market direction or churn, I can switch and start trading there. Then, when I am back in tune I can move my trades back to the real money account. Believe it or not this is a really valuable tool but one that requires a certain amount of self control to use.

The number one reason I like my demo account is for accountability. It’s very easy to look at a chart and say, “I think the market is going up” or “I think the market is going down”. It is something else entirely to to say that and then act on it. Even writing it down is better than nothing but with a demo account it more real. You see the trade in the account, you see if it wins or loses and you see if your balance draws down. It may be a fake balance but losing points is losing points, if you want to win as a trader then you have to be able to win with demo money as well as real money.

Where To Find Quality Demo Trading

Unfortunately most binary options brokers don’t have quality demo trading. If they do it usually comes with a catch. Communitraders 2.0 is the demo trading platform I use for binary options. It is full service social trading platform that is completely free. It includes forums for talking to other traders but more importantly a complete demo service.  The platform is intended to be compatible with most binary brokers so you can trade calls/puts, one touch and boundary options on a full list of assets with a wide range of expiry. If you want you can keep your trades to yourself, and track them on your profile page, or you can share them. Sharing them means other traders may ask you questions or give advice, or just say “hell yeah, great trade!”.

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You can also start a trading diary or blog with the platform. All that takes is starting your own thread on the forum. This is what helped me get really good. Not only was I keeping track of trades on the demo, I was putting them out there for all to see. This made me focus twice as hard on making good decisions, use proper money management and being as right as I could be with my analysis.

Communitraders  is looking for traders, demo users and bloggers right now. Here is a link to more information.

Bloggers Wanted!

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Skrill For Binary Options

I was recently reminded of why Skrill is so good for binary options. If you are not aware of Skrill (MoneyBookers) you should become acquainted with it. Skrill is an online ePayment/eWallet. When used properly, it is a very handy tool for traders and perhaps the best way to fund your account and withdraw your profits.

Most binary options brokers have pretty strict and complex rules about how profits are delivered to you. When I say delivered to you I am not talking about trading, spreads or price manipulation. I am talking about how payments are made to you once you have actual realized profits in your trading account. The rules are due in part to international anti money laundering laws that bind all financial transactions. These laws are good, help to protect the public and ensure that international business can happen.

For the most part they simply mean that you must prove who you are and verify where your money is coming from. What the average broker won’t tell you is that these laws can also have a big impact on how your withdrawals will be delivered. For instance, you can’t deposit money from one credit card and then withdraw it to another, and that all credit card withdrawals are limited to the amount of the original deposit.

How Long For Binary Options Withdrawals

The length of time it takes to receive your money is also affected by the AML’s, and the individual brokers policies. Most brokers will process your request for withdrawal in a couple of days or less. For may purposes we will be generous and say 2 business days is average. This is of course assuming that you have already completed the required documentation. Then, depending on which method you are using, it may take another 3-7 business days for the money to clear to your account. This means it will usually take 2 full weeks or more to receive your money. Credit cards are what I would call a medium term solution. They take about a week to clear once the payment is sent. Wires are a longer term solution. They will probably take the full 2 weeks once payments are processed. Along the way, either method could provide you the opportunity to pay an additional fee above what the broker may have charged you.

Another thing that traders need to be aware of is that, when using credit and debit cards, any withdrawal will be limited to the amount of the initial deposit. Why you may ask? This is because in the eyes of the payment processors your withdrawal is really a refund of payments. You can’t get a refund of more than you initially paid. And also because a credit company does not function as a bank. This can be a serious pain in the ass for anyone who has used more than one credit or debit card to fund their account.

Say for instance you deposit $200 twice, using 2 cards. Then you make $300 in profit for a total account of $700 and want to withdraw $300. The first $200 will go on the first card and will probably be free. The remaining $100 will go on the second card and will probably incur a fee. Now, assuming you used only one credit card, deposited $200 and then traded your account up to $1,000. At that time you decide to withdraw $400. The first $200 will go back to the card then any remaining money will have to be sent by wire which means you will have to have a bank account AND go through the process of verification again.

Skrill For Binary Options

Skrill can help you avoid all of that. You can use Skrill as a focus point for all of your current bank, credit and trading accounts. Simply upload money into your account from whichever sources you have and then use the Skrill account to fund your binary options trading. If you need or want to add funds then use the same process. Add money to your Skrill account, then transfer it to your trading account. That way you will not be faced with any credit card withdrawal maximums and no extra fees. There is a fee when using Skrill but it is only 1% and is paid when funds leave your account. That means, for example, you could add money from 2 different cards and only pay the fee once as the funds were leaving Skrill to go to your binary account.

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Best Deposit Method Binary Options

Now, depending on which broker you are using, there may be an additional hurdles. Skrill accounts can not link credit cards to gambling sites so you will need to take that into consideration. Most binary options brokers will not fall into that category but a few do. .

CySEC brokers are financial institutions and others like them are considered to be a type of bank or financial services company.  Back to the point though.; to get around this problem you can use a Paysafe card account. Load your money onto the Paysafe account, then load it onto the Skrill account. It will cost you a little up front but will save you a lot in fees later on.

Withdrawing to your Skrill account is super easy.  Go to the banking page of your broker, choose the Skrill method, and make the request. Once the request is processed and payments is made it is near instantaneous which means that your withdrawal could be as quick as 2-3 days. Then all you have to do is transfer the money to whichever account you choose. Transfers from Skrill to your bank account usually take about 2-3 days as well.