It is widely believed that forex demo account is a good choice for traders when they first break into forex market. Forex demo account enables traders to use virtual money to make transactions without using their real money. It is obvious that traders need to learn as many things as possible when they first enter forex market. Therefore, the best demo account 2019 allows them to test forex market before making their real investment. Basically, forex demo account is really important for traders, which plays the role of facilitator. However, it is advisable that traders should opt for the best forex demo account because of its benefits.
- What is a forex demo account?
In reality, brokers decided to offer their customers forex demo account because they want their traders to practice currencies without losing money. It is apparent that no one wants to lose their money when they first embark on their trading career. As a result of helping traders gain experience, demo account is quite similar to real account. Traders will be able to practice their trading experience by using demo account at the beginning. With the main purpose of stimulating forex traders, the best forex brokers also want to get their profits when traders begin using live account.
- Advantages and disadvantages:
Although demo account enables traders to test trading platforms as well as trading strategies, it still has some negative aspects. Now, we will look at some negative and positive aspects of demo account.
- Advantages:
- Determine if you like trading currencies: The moves of popular currency pairs are likely to be volatile between midnight and early morning.
- Practice without losing money: Traders will be able to become more knowledgeable about how to place orders and execute trades when they make use of demo account.
- Upgrade skills and techniques: Obviously, traders have a chance to look at their trading strategies and tools thanks to demo account. Also, they will be able to create new strategies and test whether those strategies are effective.
- Test a specific platform: Demo account makes traders test a trading platform easily. In fact, traders will be able to know whether they are trading in a right way. In addition, they also know how to create charts and make transactions.
- Disadvantages:
- Demo accounts may be restricted in funds and duration: In terms of funds of demo account, traders can use it for free but they have to adhere to a certain period of time offered by brokers. It is because brokers want their clients to transfer to live account after experiencing demo account.
- Real trading conditions differ: Unquestionable, traders can only use virtual money if they use demo account. We cannot ensure that because there was a bid or ask that met traders’ standards, a real trade would have happened.
- Data may be procrastinated or different: Traders might not have a chance to enjoy live data streams because not many brokers offer this. In reality, you might have to work with procrastinated data or incomplete data from what you may get in a live account.
- You do not learn the emotional cost of trading: The cost of demo account is very different because it is not real. Therefore, it is not a big concern for you when you lose your money in demo account. On the other hand, it is really stressful when you lose your money in live account.
- You may disclose your personal information: Apparently, you have to provide your personal information when it comes to the registration of demo account. Some information are names, addresses and other things.
This is the list of top 4 brokers with best forex demo account.
- Exness reviews
- Hotforex accounts
- XM accounts
- FBS accounts
- Conclusion
All in all, trading with demo account is a good step to practice and test forex trading platforms, trading conditions, and trading strategies. Nonetheless, it is recommended that traders should not consider demo account a real account as well as do not expect to be successful when they use live account. It would be crucially important for traders to look at their trading strategies and how they execute trades.