In this section of our guide on using IQ Option, we would like to emphasize one of its best characteristics which is the ability to practice through a free demo account on IQ Option without having to make any deposit and thus allow you to trade on binary options in the same way as you would do with a real account.
This means that a demo account allows you to trade under the same conditions as a real one but without risk since you do not trade with real money. The demo account offered by this broker has no time limit so you can practice using it for as long as you want.
What can you do with your demo account?
The active features on a demo account on IQoptions are:
- Upward and downward trades: To bet on the rise or fall of a price of an asset, you can buy Call (buy) or Put (sell) shares by simply clicking the “Up” or “Down” buttons located on the right side of the platform display.
- See the list of open positions: When you open a position, i.e. when you buy an option, it remains on the list of open positions until it expires. To access the list of open positions, you can access the “TOTAL PORTFOLIO” section on the left side of the platform display.
- See the history of the operations carried out: Every trade you make is recorded, which is then entered into a register. At any time, you can access the “TRADING HISTORY” section located on the left side of the display even in the demo account.
- LEADER BOARD: you can view the ranking of the most successful traders of the week.
- MARKET ANALYSIS: The demo account allows you to access market news so you can see for yourself the quality of this service. These are the main news concerning some instruments that you can trade on the platform, even in demo mode.
- VIDEO TUTORIALS: a practical list of lessons in video format to learn how to trade on the IQ Option platform along with the latest updates on the new products available.
- CHAT AND SUPPORT: A support window, which can be accessed in several ways, that has answers to the most common questions. The support service can also be easily contacted by clicking the links in the lower part of the platform display and “support service” or dialing the telephone number indicated.
All what we have mentioned so far can be found in the highlighted rectangle below from a screenshot on IQ options. Open a demo account and start practicing.
There are additional features for the demo account on IQ Options
- Easily set up purchase transactions for binary options: there is a column dedicated to options purchase on the right side where you can set the time, the amount and the direction. The profit percentage is always visible.
- Select the asset to trade on: just above the real-time chart, there is a window where you can select the type of instrument that you can use to make the forecast.
Let’s now see in detail each of the points mentioned.
Buying High and Low Binary Options
IQ Option divides trading options into two categories: digital and binary.
- “Digital” trading involves binary options with an expiry time of 1 minute, 5 minutes, 15 minutes
- “Binary” trading involves variable expiry times, starting from 60 seconds onwards.
From the right column, you can manually set the time when the option will be closed. It is important to point out that, apart from the time, the mechanism is perfectly identical. Therefore, the time changes but not the financial instrument or the mechanisms underlying the trading operation.
Having clarified this, let us now continue the discussion and then repeat that with IQ Option's demo platform where you can also practice trading operations and then buy high or low binary options depending on your forecasts.
Let’s have an example of a binary trade where we want to bet on the price increase. We will proceed in this way:
- Choose an asset ; For example: EUR/USD
- Set the time
- Select the amount, for example, €1
- Click the green button”HIGHER”
On the contrary, if we wanted to decrease the EUR/USD asset, we would have to click the “LOWER” button, always after having set all the rest. So, to bet on the fall, we’ll have to:
- Choose an asset ; For example: EUR/USD
- Set the time
- Select the amount, for example, €1
- Click the red button “LOWER”
Comparing the Demo with the Real Account
Comparing the demo platform with the real account is not often done on sites dedicated to online trading, so we hope you will enjoy this kind of idea.
To compare the demo version with the real account on IQ Option, we first access demo mode and make a screenshot.
After a few seconds, just the time to change to real mode (by clicking the “practice account” orange top), we make another screenshot.
Comparing the two screenshots we do not notice any difference, except those caused by the passage of time. As you can see from the bottom of the two screenshots, between one and the other 38 seconds have passed, during these .83 seconds, the price has increased slightly (by 0.000035).
What matters is that the percentage of profit that the user can get is 88%. This means that for every €1, you can get a profit of €1.88 (of which the net is €0.88). For every €10, you can get a profit of €18.88 (of which €8.8 is the net).
This is not a small factor since you always need to check if the conditions for the demo account are the same in case you trade with real money.
Keeping Track of Your Progress
The most important aspect of a demo account is to be able to learn by practicing. In addition to discovering what binary options trading is “in the field”, the demo account allows you to trade, for all intents and purposes, through learning by doing.
However, learning and improving is not enough. You also need to keep track of your results to see how you are progressing, whether you are making progress or if you are getting worse. For example, you could make an account at the end of each day and compare all the budgets obtained. Similarly, take the overall results of the individual days and compare them with the whole week.
To keep track of your progress, the opportunity to consult both open positions (to keep all positions still open at a given time under control) and the history of your operations or the “TRADING HISTORY” are available even on the demo account.
To consult the history, you must click the button “TRADING HISTORY” on the column located on the left side of the display, which you can find in the following screenshot.
As you can easily see, the first button at the top allows you to access the currently open positions while the second one allows you to access the history of operations carried out. In order to make a balance of the day, you can click “Trading History”. As the name implies, this refers to the history of your trading.
Market News and Technical Analysis
Two things are necessary to operate at full potential: fundamental and technical analysis.
As you can see on the demo account, binary options trading does not offer great chances of success for random traders. But it is necessary to act methodically and sensibly above all.
Fundamental analysis is the one that takes into account the economic, financial, social, political and historical context of the market. For example, if the price of gold or the EUR/USD pair moves in a certain direction, it is not at random. Each price varies according to several factors. The fundamental analysis is precisely the study of all these factors. For this reason, it is very important to be up to date with events that may affect the price of a particular financial instrument.
In terms of updates, we have seen that IQ Option also offers a demo version of a section dedicated to real-time market analysis. A very interesting aspect is that they can be consulted in the same display in the platform without losing sight of any open trades.
Technical analysis is instead the one that takes into account the charts and then the data with which these charts are created. The main actors are therefore the graph and the indicators. On IQ Option, in addition to the practical and effective Japanese candlestick charts, there are items present in it that are considered to be some of the most important and useful indicators in trading with binary options.Open a demo account with IQ Option and start trading in demo mode to learn more about the financial markets.
The availability of video tutorials is one of the factors that confirm the high quality of this platform, in addition to the good will of the broker, whose policy of offering free services does not stop at the demo platform but goes much further by providing a video archive of lessons on trading options with IQ Option to all those who use the free demo platform without paying a single penny.
As you can see, by clicking the “VIDEO TUTORIALS” button that appears in the left column , an additional column appears on the left that contains numerous videos that you can scroll down.
But that’s not all. As you can see, there are also tutorials about charts and indicators as well as the basics. IQ Option‘s library of video tutorials also very useful for complete beginners as well as intermediate and advanced traders.
Chats and Support
Having the support of customer service is essential up until you are fully familiar with the trading platform. For this reason, by clicking the “Chats and support” button located on the bar on the left of the display, you can access various types of customer support. You can use the telephone for the more traditionalists as well as a FAQ (“General Questions”) for those who prefer to find the answer alone. This can be found by clicking “HELP” after clicking “MORE” as shown on the screenshot below. You can also ask a question and wait for an answer to be given by e-mail.
A very useful feature of the support service is live chat. Live chat support will allow you to have a quick and personal response to all types of problems encountered whenever in doubt.
We would like to emphasize that these support services are also available in the free demo version so you don’t need to have a real account to get personalized support.
The IQ Option team is among the first and most awarded teams in the world for this aspect too.
What can’t you do with an IQ Option demo account?
Although demo accounts are very exciting, you need to make a deposit if you wish to participate in IQ Option trading tournaments. On the positive side, you can deposit as much as you need to participate in a couple of tournaments. In fact, consider the fact that the minimum deposit with IQ Option is €10, a sum that will allow you to participate in two tournaments.
Although they are exciting and cheap, we recommend that you do not start participating in tournaments immediately but rather, to become familiar first with the demo and then the real account (to manage emotional aspects) and then participate in the tournaments. Participation in tournaments is very popular because it offers very high prizes.