Forex trading is definitely a complex world, so at the first phase, traders need some practice. Brokers open a service for them to practice which is called demo account with a lots of functions that help traders to learn themselves the best techniques and also to template about what trading strategies will fit them the most in the future. The main point is that the best forex demo account choices will make the practice phase more smooth and helpful.
The definition of demo account
Brokers organize demo accounts like a treat to traders to train trading with lookalike real money but actually that is the modeled money from the system. This means that traders are not required to invest any amount to trade demo account. Also, they are connected with the installed trading platform of the brokers, from that traders can have the clear picture about trading forex affairs. But for the brokers, they use demo accounts to seduce more traders to get involved with them too.
Advantages and disadvantages of the demo account
In general, demo account is good for some first thoughts about trading and for later. Besides, there are some warnings that are better noticed by traders too.
Benefits
- See if you can handle the changing trend of currency trading because of the fact that some currencies can be moving all the time at any moments of a day.
- Practice trading skills with no required deposit, there are some functions that need to be trained so many times like make the position and make orders. Demo account helps traders to train these main elements for free.
- Shaping up trading techniques after testing with demo account, traders can determine their optimized strategies and be influent with taking the advantages of trading tools to apply for real trading.
- Examining a particular trading platform by checking their trading condition then traders can define their trading path and also be familiar with trading chart and graphs or execution also. Besides, the faults of trading platform can be discovered by traders who test with demo account
Drawbacks
Short terms of demo account are one of the downsides of demo account when most of the best forex brokers 2019 give a very quick time for traders to use the demo account with simulated money to traders; after that they try to get traders to sign up with the real accounts.
Real trading is differed totally; then do not assume that your trading execution can be satisfied with demo account and this is exactly what could happen when you trade real accounts. It is low in chance that perfection can be unchanged.
Unreal trading data is even more popular with demo account because brokers keep the real data source for themselves. They give the not updated data instead.
Be careful with how you feel about losing money in demo account and real account. The fact is the demo account traded with unreal money, then losing even 1000 $ is not the same thing with 1000$ in real fund and you can be fooled if the mental decision is off the track with the real account
Sometimes, to exchange the chance to open demo account, traders are asked to give personal information like names, email address… that obviously is used for a purpose.
I am totally into the top four brokers for demo account as below:
- Exness accounts
- Hotforex accounts
- XM accounts
- FXTM accounts
To sum up
If you are successful with demo account it is not necessary that you can do the same with real accounts. Therefore, the main point is focusing on your trading techniques and examining carefully the ways of execution of the system and check on how you work it. And do not rush into real account when you are not calm and awaken after demo accounts.