The minimum deposit for some brokers is no more than 20-40 reais. But what if you don’t want to spend even that amount to familiarize yourself with trading? Is it possible to find binary options for free? Can they bring real profit?
We’ll talk about that today.
Where can I find free options?
We immediately confirmed that it is possible to trade without having to invest anything. Now let’s talk about how effective this is and the ways in which it’s possible.
Demo account
The most obvious option is to operate a demo account. But you can’t expect to make a profit on this type of account, because it has a different function.
Thanks to the demo account, you can make real trades without having to risk anything. After registering (sometimes after making a deposit), many brokers offer a demo account with a certain amount on it.
All the assets, charts and the same conditions as the real account will be available to you. You will be able to make trades, make profits or suffer losses. However, the money in this account is not real. It is impossible to withdraw it, but on the other hand, there are no risks involved in this type of account.
The demo account allows you to trade binary options for free and gain experience. All the successes and failures provide the beginner with what is even more important than money at this early stage: experience. Without it, it’s unlikely that you’ll make money consistently.
No deposit bonus
Today, this type of promotion is not very popular among brokers, so we won’t spend too much time discussing it.
The essence of this type of offer is simple – the trader receives a bonus of a certain amount, which can be used to make trades. The bonus itself cannot be withdrawn, but the profit from it will be fully available to the trader at the broker. However, certain conditions apply. In order to make the profit available, you need to make a certain volume of trades, which is usually around 50 times the amount of the bonus you received. In addition, there are usually only a few days to fulfill the conditions.
It is very difficult to release a no-deposit bonus and, at the moment, we don’t know of a single broker offering it. However, free binary options with no deposit bonuses are a great opportunity to gain experience. Don’t forget that in this way there is an opportunity for real profit. Therefore, you shouldn’t ignore such an offer when it appears on a broker’s website. However, if such an offer comes from a scammer, it’s best to ignore it.
Demo tournaments
Tournaments are another chance to profit from binary options for free. A certain number of traders take part in the tournament and whoever makes the most profit wins the main prize.
The most popular broker that regularly organizes competitions on demo accounts is Binomo. Tournaments are held there every week.
There are several options for free tournaments.
- Free tournaments for beginners. All registered users can take part, even those who haven’t made a deposit yet. The main prize is 10 trades worth $150.
- Free tournaments for professionals. Anyone with a Standard account type or higher can take part. Here, the main prize is not free options of $150 dollars, but real money.
We’ve just looked at the options that allow you to try binary options for free. Now let’s find out if these opportunities are worth it. To do this, consider the pros and cons of trading without making a deposit.
Pros and cons of free binary options
Working with binary options without making a deposit can be both beneficial and harmful. Below, we’ll take a look at the pros and cons to understand what you can expect from it. Let’s start with the good.
Risk-free trading: Many traders avoid making deposits at first. With free trades, you can be more confident that trading is right for you.
Gaining experience: Every newbie gets the chance to gain real trading experience without investing a penny in it. You can test strategies, indicators, chart types, etc.
The opportunity to make money: Yes, although it is very difficult (and in some cases impossible), it is possible. If you know how to trade, you can make money even without investing.
Trading for free also has disadvantages. The first is that you can make money, but this is difficult, and if you manage to make money without investing anything, you could certainly make a lot more by making a deposit.
The second disadvantage is that free binary options can accommodate. When a trader is not risking anything, he allows himself to relax. It can be easier, for example, to open a contract late or to violate money management rules.
If you notice this, make sure you correct it. Don’t allow yourself to relax, otherwise it won’t make sense for your development as a trader.
After all, what conclusion can we draw? Trading without making an investment has its advantages, but it also has disadvantages. If you’re learning to trade, of course, you don’t need to invest money. However, making money without investments is almost impossible, especially if you’re rolling in a lot of money.
What’s the best amount to start with?
Do you want to start earning money? Then you need to make a deposit. But you need to start with the “right” investment. So let’s find out precisely how much money you need to get started.
To begin with, let’s recall the basic rule of money management: an investment in one trade should not exceed 3-5% of your balance. Generally, for beginners, it’s best not to risk more than 1%. Based on this rule, you should plan your account.
Next, we’ll take into account the minimum initial deposit and transaction amounts. For example, on the Binomo website, the minimum deposit is 40 reais and the minimum cost of a trade is 4 reais. For 4 reais to be equivalent to 5% of the initial deposit, you only need to have deposited 80 reais
And the last important factor you need to pay attention to is the desired income. With a small investment, you shouldn’t expect a return of thousands of dollars. Even for a fairly experienced trader, a monthly profit of 10-15% on the value of the balance is a good indicator. When you load 1000 rubles into your account, it’s unlikely that you’ll earn anything. Therefore, an initial investment of at least $500 will allow you to make a relatively acceptable profit for a beginner (by trading well, of course).
Now that we’ve explained how to trade binary options for free, whether or not to use the broker’s offer is up to you.
