Trading on Forex, the new traders need a technique to learn without losing any real money on it. Hence, the Demo account is the best technique that most of traders trying on before getting start with the real account.
Besides, the benefits from the right choice of the best demo account 2019 would lead traders to a quick learning process of trading and analysis as well as consider their own trading perceptions.
Defining a Forex Demo account
Practice of money lost free is the primary features of a Forex Demo accounts on the trading platform since the establishment. It is also called “Sim” accounts( stand for simulation). It would give you the feeling of trading on the real money
Especially, the money given in the Demo account is a copy version of real money on the special trading platform. The main reason why traders should start with the Demo account is to ensure the profit gained in the real trading money in the future.
How good and bad the Demo account is
Although traders may save huge money on practicing skills on the Demo account of the best forex brokers BRKV regarding the fake money, it contains many lacking features that found in the real trading.
The good things about the Demo accounts
- Recognise your trading currencies references: midnight and early morning are those periods have the most trading volume of the common trading currency pairs
- Practice but save the risking money: time consuming for practicing on the Forex platform is huge for learning the order placement and executions
- Able to improve skills and strategies: further than the backtesting features and translating tool to real trade, this technique is used by experienced traders to trial their new strategies and tools.
- Endorse a specific platform: personal bias in considering a trading platform may influence the decision making. Hence, with the Demo account, you can easily testa platform regarding the navigation, Chart creation and trader executions. You can also recognise bugs and instabilities.
The bad things about the Demo account:
- Limited funds and duration of Demo account:the conditions of trading with free funds of the Demo account is the time limitation. The purpuse behind is to ensure you will move to the real account
- The difference between demo and real trading conditions: the fund you are given in the Demo account is unreal. Hence, you are not guaranteed the real trading bid and ask quotes will meet your trading criterias.
- Delayed or different data: the data in Demo account are mostly not a live streaming ones. Those are delayed or incomplete data from the previous trading
- No emotion of cost of trading: when trading with the Demo account, your lost of $100,000 fake money is totally different from your lost of $100,000 of your real funds. Hence, you may possess the decision that not really similar with your real account
- Personal information insecure: you need to provide some sort of information when register, such as Name, Address and more.
Picked top 4 brokers of the Demo account providers are
- Exness accounts
- Hotforex accounts
- XM accounts
- FXTM accounts
Overall, testing a new trading perception and strategies as well as practicing are the primary usage of the Demo account at risk-free money. However, the gap when translate into real trade exists. Whenever you are confident to go beyond to the real money trading, go for it. The gap of trading executions and how trades is executed are recognised. Thence, real emotional decisions will occurs which cannot be seen in the Demo account.