Finding a U.S. broker demo for binary options is difficult. In this article, we provide you with starting places for your search, tell you which brokers offer the best demos, and explain the details of the process. In detail, we will answer these questions:
With the answers to these questions, you will now everything you need to find the right U.S. broker demo for you and start your binary options career on the right foot.
U.S. brokers face a unique challenge. Legally, they are allowed only to trade with brokers that are regulated by the U.S. government’s Commodities Futures Trading Commission (CFTC). This commission regulates and controls brokers for short-term assets such as binary options, and without accepting regulation by the CFTC, no broker is allowed to offer their services to U.S. traders.
This is a significant problem. Currently, there are almost exclusively two types of brokers:
While the European Union does a good job regulating its brokers, these brokers are illegal in the United States nonetheless. Most of the biggest binary options brokers in the world are regulated by the European Union but not the CFTC, which is why such major powerhouses as IQ Option, Banc De Binary, and 24Option are legally forbidden from offering their services to U.S. traders.
This limited selection can make it difficult for U.S. binary options traders to find a good broker. It is even more difficult to find a good U.S. broker demo.
Theoretically, it is possible for U.S. traders to sign up with non-U.S. brokers. Nobody will sue you if you do so, just like nobody would sue you if you buy a car that is unsafe by U.S. standards in Mexico. What you do in other countries is your business, but please do not expect any help if things go wrong. Just like you can’t sue anybody if the Mexican car breaks down, it is difficult to sue somebody if an overseas broker steals your money. Having the backing of the U.S. legal system is a great security blanket.
Some foreign brokers do, however, deny U.S. traders the chance to sign-up for their services. With these brokers, there is nothing you can do. At any case, resist the urge to simply provide a wrong address outside the U.S. When you want to withdraw money, you will have to provide a copy of your passport to verify your identity. If you entered the wrong address during signup, you might be unable to withdraw your money.
Since we provide only recommendations on this website and do not intend to tell you how to do your business, we will analyze both options in this article.
These are the difficulties U.S. broker have to deal with before they can start their journey to binary options success. Luckily, there are a few simple ways to solve them. Let’s look at these ways.
To find the right U.S. broker demo, U.S. traders need a broker that fulfills two requirements:
Currently, the only binary options exchange that fulfills both requirements is Nadex. Nadex is a U.S. binary options exchange, and was the first to register with the CFTC, and it offers one of the best demos you can get anywhere.
To understand Nadex’ service better, let’s analyze what makes broker stand out from the crowd.
Nadex is one of the very few binary options exchanges who allows you to test their demo without having to deposit money. Most other exchanges or brokers require you to get a regular trading account before they allow you to test their demo, trying to reduce the amount of traffic to their servers and reserve their best services to paying customers.
While this approach is understandable, it leaves traders with a dilemma. To get a regular trading account, they have to deposit money into their accounts, often at least $250. They have to deposit money with a broker in order to find out whether it makes sense to deposit money with the broker, which is a difficult pill to swallow for traders who want to learn whether they can trust a broker before they deposit money with it.
Luckily, Nadex has solved this issue. To get the Nadex demo, all you have to do is sign up for it by picking a username and a password. There is no deposit, and you do not have to get a regular trading account in order to get the demo. Simply sign up and start trading.
This system is much more customer friendly. Especially newcomers will love how easy it is to get started with Nadex. The entire process resembles signing up for an online game more than it resembles opening a bank account. There is no risk, it is quick, and it is easy.
The Nadex demo account is the ideal way for U.S. traders to get started with binary options.
The Nadex demo is not only deposit-free, but it also offers a feature that no other broker offers. This feature is an unmatched variety of strike prices, which allow for unique new trading styles and unmatched accuracy and profitability.
Most binary options brokers offer only one strike price per binary option – the current market price. When an asset is trading at $100, you can predict whether it will trade above or below $100 when your option expires, but you are unable to predict that the asset will trade above or below $101 or $99, for example.
This way of trading limits your possibilities significantly. When you expect a strong movement, you are unable to trade this movement with anything but a normal option. While you are making a much more accurate prediction – you are predicting that prices will move up significantly instead of just up – you get the same payout as if you would only be making the basic prediction, which is a much lower payout than you deserve.
To solve this dilemma, Nadex has introduced multiple strike price per asset. With this system that is available periodically, you are not tied to the current market price but can choose your target price from 30 alternatives. For an asset that is trading at $100, you can predict that, when your option expires, it will trade above or below $101, $102, $103, and so on, but also above or below $99, $98, $97, and so on.
This variety of options has four advantages:
With these four advantages, Nadex can help you to increase your profits significantly. The Nadex demo is the best way to discover, test, and perfect this trading style.
There are much more aspects to a good demo besides profitability and no deposit. Nadex offers a convincing service in every one of these aspects.
Combined, these features make Nadex one of the best demos a trader can get, regardless of where they are from.
As we mentioned earlier, U.S. traders can also sign up with overseas. Do we recommend this? No. With such a great binary options exchange as Nadex right at your doorstep, why would you take the risk of using an exchange or broker in a different legal system from the other end of the world? If you are absolutely committed to giving these brokers a try, though, here are some risk-free ways in which you can accomplish this goal.
When you take your trading overseas, you want to make sure that your money is safe. This brings us back to the problem with demos that require a deposit. Having to make a deposit to be allowed to sign up with an overseas broker means having to transfer your money to an area with a different legal system where controlling your money might be difficult.
The ideal tool to avoid this dilemma is the IQ Option demo. The IQ Option demo, too, works without requiring a deposit. All you have to do is sign up for the demo with your Google account, your Facebook account, or your email.
With this system, you risk nothing. You get to test every aspect of IQ Option’s service without having to disclose personal information or having to deposit money.
This system can make sense for U.S. traders. If you want to see what trading can be like with exchanges or brokers other than Nadex, IQ Option allows you to discover an alternative completely risk-free. What you learn with IQ Option can only help you to become a better trader and enjoy more success.
There is, however, the problem that IQ Option refuses to accept U.S. traders for their regular account. With their demo, these things do not matter, since there is no money involved. When you want to switch to real money trading, though, you have to find a new broker. Because of this limitation, U.S. brokers should use IQ Option more as an addition to see another service and learn something about themselves. They will be unable to start their trading career there.
There are three overseas brokers that offer demos to U.S. traders and allow these traders to trade with regular money, too. Let’s take a quick look at each of these brokers and the demos they offer.
Overseas broker #1: Finpari
Finpari is one of the most innovative binary options brokers. In detail, Finpari offers these unique features:
Finpari also offers you a demo that allows you to test these features risk-free. The downside to this demo is that you have to open a regular trading account to test it, and to open a regular trading account, you have to deposit at least $250.
While Finpari is a 100 percent trustworthy broker, this is a deposit you can avoid with Nadex or IQ Option. On the other hand, Finpari offers a few features you can’t find anywhere else, which is why the investment can make a lot of sense for traders who want to use these features.
When you are done with your demo, you can withdraw all the money you deposited and you can close your account. In this sense, the Finpari demo is free for U.S. traders, but you have to be willing to accept the deposit.
Should you decide that Finpari is the right broker for you, follow one of our links to the Finpari website, fill out their signup form, and deposit money into your account. Once you have completed this process, you can contact customer support and ask them to activate your demo.
Overseas broker #2: Porter Finance
Another broker that accepts U.S. traders is Porter Finance. While Finpari is the young, innovative upstart, Porter Finance is the old U.S. specialist that offers a much more classic service but has tailored its service for U.S. traders.
For U.S. traders, Porter Finance offers these advantages:
Porter Finance also offers a demo. Just like with Finpari, to get the demo, you have to open a regular account and deposit at least $250 into it. Porter Finance, too, is a highly trustworthy broker, and you can be sure that you will get all of your money back once you are done with your demo, but you have to decide for yourself whether Porter Finance’s features a worth the investment.
If you decide that they are, follow one of our links, sign up with Porter Finance, and deposit money into your account. Then contact customer support and ask them to activate your demo.
Overseas broker #3: tradorax
The third overseas broker that opens its doors to U.S. traders is tradorax. tradorax is a young upstart broker that offers unique bonuses and rewards in order to find more customers. Since many binary options traders start to switch to tradorax, it might be wise to take advantage of these great offers while they last.
Let’s look at each of tradorax’s great features individually.
tradorax allows you to test these features with their first-class demo. Just like with Finpari and Porter Finance, though, tradorax requires you to get a regular trading account before they allow you to test their demo. This process involves making a $250 deposit.
Of course, the advantages offered by tradorax are intriguing, which is why it can make great sense to try them with a demo. If you want to do that, follow one of our links to the tradorax website, fill out their signup form, and deposit money into your account. You can then contact customer support and ask them to activate your demo.
There are a few legal obstacles that make it difficult to find a great U.S. broker demo for U.S. traders. With the right knowledge, however, these difficulties can be overcome easily.
In a nutshell, there are five brokers that offer demos to U.S. traders:
With these five brokers, U.S. traders have all the options they need. Pick the broker that you like best, follow one of our links to their site, and complete the signup process, either by signing up for the demo directly (for deposit-free demos) or by filling out the signup form, depositing money into your account and asking customer support to activate your demo.