Trading novices and experts alike are becoming familiar with a relatively new form of option trading called binary option trading.
If you, too, are curious about this new financial instrument and would like to try it out for yourself risk-free, the best way to do so is with a free binary options demo account.
Not many online option brokers offer traders the opportunity to trade on their platform before committing to investing with them or without paying commission, but lucky for us, one established online binary broker does.
OptionBit which is a Web-based binary options trading platform powered by Tradologic, offers new traders a free $500 binary options demo trading account so new and curious traders and investors can take the platform for a test drive before committing to investing in binary options.
The free binary options demo account enables traders to use all the features of OptionBit’s platform in order to simulate actual trading. The demo account offers trading on four asset classes: stock indices and shares, commodities and forex pairs. In addition, traders can choose to invest in three different available binary option styles: Up/Down (also known as High/Low), Range (also known as Boundary) and Touch Options.
The free binary options demo account also allows traders to use OptionBit’s “Stop Loss” and “Take Profit” and “Roll Over” features if they are looking to close a binary position before expiry or extend the option’s expiry further.
The free $500 options demo account is valid for 30 days after it’s created so traders have plenty of time to give the binary options trading platform a spin. After the end of the trial period, traders will be brought to the deposit page when they log in, so if you’re satisfied and would like to invest in binary options with OptionBit, the process of creating a real trading account is quite intuitive.
UPDATE – August 3, 2011
OptionBit has altered the way it opens free demo accounts since this article was first published. Now, in order to receive a free binary options demo account, one must contact OptionBit support via live chat and request one after having created a trading account.
UPDATE – December 26, 2011
OptionBit now only allows US residents to trade binary options on stocks and has closed trading to US residents for binaries on commodities, forex and indices.