When and How to Use a Forex Demo Account

Though being a helpful assistant, forex demo accounts may also result in harm. Now I’ll show you exactly what is your prime use of the demo accounts, the way to use it and should migrate from a demo account to a live account. Let’s begin.
What’s a demo account
Nowadays, a demo account is being supplied by virtually every forex agent. Demo accounts are virtual balances withvirtual money that’s joined to a true trading platform, getting actual information available on the marketplace.
This means that you may open and shut trades plus it won’t cost you a single dollar. Even though, your trading commands are not really sent to the market, you will not recognize any difference.
Demo accounts realistically simulate real trading. At first sight, the only difference is money — real vs. virtual. However, if you look at the issue in more detail, you will find out some more.
When to use demo account
Using a demo account comes handy in two situations. First, when you are a beginner. If you are not familiar with forex trading you should start with ademo account. You can test the trading platform and learn the basics of trading. The most popular trading platform is Meta Trader 4.
The key is to be able to control the trading platform. It should never happen that you trade with real money without knowing when and how to open or close a trade etc.. Because real money generates more stress and pressure, you must always exactly know how to open and close a trade, how to set your take profit and stop loss. With a live account, all the steps must be done quickly and without a mistake. There’s no time to hesitate and look where to click and what to do…
Once you become familiar with the trading platform and have at least the basic grasp of trading (trading volumes, tick/pip, e forex trading strategy etc.) stop using your demo account and progress to real trading.
It should be emphasized that forex is affordable to everyone. Real micro forex account is something even students can afford. Anyway, all traders should take their first steps with small amounts of money.
Why?
Because demo accounts can’t teach one of the emotional facets of the company and since trading using a demo account for too long makes no sense. After about a couple weeks of working with a demo accounts, you must migrate into a live or actual trading accounts. In the event that you experience a reduction, it is not going to be any catastrophe, maybe a couple dozens of bucks. The expertise and lessons learned will provide you over a year of trading with a demo accounts.
Suggestion: What distinguishes a fantastic dealer from a bad trader isn’t the approach but their mindset and currency management.
Above we discussed two scenarios where demo accounts may be valuable: One was that the beginner point. The next one is that the testing of new trading strategies and new markets i.e. currencies, commodities etc.. As an experienced forex trader, you’re certainly going to have a minumum of one demo account for a backup.
Differences between real and demo accounts
Thus far, it’s appeared that the difference between a demo account and also a true account is cash. Ideally — using a fantastic forex agent — it’s. On occasion the demo account is optimized that in most instances is justifiable. Throughout volatility peaks, normally following a variety of meetings or media releases created by central banks costs tend to change. During these periods it’s hard for a broker to process a trading arrangement, which may be postponed or refused by a true sector.
Using a demo account, you won’t encounter this issue. The truth is that in certain cases your actual account is slower compared to the demo account may be brought about by some unjust practices like a set delay in your accounts. Having a strong licensed and regulated agent, such issues don’t exist. Therefore, it is crucial to find yourself a reliable forex broker.
Demo accounts can help enormously and we recommend that you all use them. Nevertheless, be aware that the demo account is not a tool to be used in the long run. Even a small real account with a few dollars and the experience when using it will give you much more.
Verified brokers offering demo account
As mentioned above, demo accounts are offered by all reliable brokers. After opening the website, simply press “Open demo account”. Our listing of analyzed brokers offering demonstration account comprises the following: