Regardless of whether you are a beginner trader with no real-world experience of using trading platforms or an experienced trader looking for a new broker, it is always best to start out by opening the best demo account where possible.
First of all, a Forex demo account lets you try out the broker’s trading platform to see if it is to your liking. But more importantly, a Forex demo account lets you test out your trading knowledge in a totally risk-free trading environment. In order to find the best forex demo account, you can take a look at a list of best Forex Demo Account Brokers which we have evaluated based on a variety of factors.
What is the forex trading demo account?
A forex demo account is a trading account in which the account user can experience the forex market using virtual cash. It is given by most best forex brokers 2019 so that potential clients can have a simulated experience of what it will be like trading the forex market.
Advantages and Disadvantages
There are lots of attributes of demo accounts that tradesman can use to practice with no risk. Nevertheless, some features in real accounts are not available. Let’s see the list below:
- Decide whether you prefer trading currencies. Most used currency pairs are usually volatile at the end of the day and early morning.
- No money needed to practice. As a new trader, you will need time to learn more about the trading forex and receive as many experiences as possible.
- Increase your skills. Normally, adepts search for new plans to test and tools to incorporate. Demo accounts translate to real-time execution.
- Check a particular platform. It is normal that traders choose a dealing platform base on their personal characteristics. This advantage allows you to make ideas and execute trades better. Besides, you can remove negative issues that can occur during your trading.
- Demo accounts might be limited in funds and time. Lots of intermediaries are not so generous in this problem. Generally, they restricted the duration you can trade with simulated money for free. Their main goal is to push you forward and become a live account.
- The difference in real trading conditions. As we mentioned above, you can only use unreal funds in demo account type. Therefore, even if you have a good bid or ask, it doesn’t mean your trade would have happened in real life.
- Slow and different data. Not many brokers offer live data for a tradesman who is using demo accounts. It is easy to understand since you don’t pay money for them to practice. As a result, you ought to work in a bad condition such as insufficient data or delayed data.
- No real emotion while trading. Considering you lose $100,000 in your real account, it will be a disaster to your perception. Meanwhile, losing $100,000 in a demo account is not that bad though. Hence, you must carefully decide in a live account than in a demo account.
- Personal information leaking. You are required to give information about you like your name, living place and so on when you sign up for a demo account.
Here are the great demo account brokerages:
- Exness minimum deposit
We can see that the demo account is one of the best accounts for new traders. You are risk-free while practicing and testing new thoughts and skills thanks to it. Although it is a good choice, don’t think you can become an experienced trader just using the demo account. Don’t be trapped on demo forever and move to a live account. Study the differences between your trades and the way you execute them. The real account will grant things that demo account can’t, especially the emotion while trading.