Basically, traders do not want to lose their money when they first embark on forex market. They normally choose the best demo account 2019 as a starting point because it enables them to test forex market without losing their money. After having enough experience, they will switch to live account. However, it should be noted that traders need to find a suitable forex demo account because it will help them fully understand the mechanism of forex market. By doing this, traders will be able to make profits easily when it comes to live account.
What is a forex demo account?
In general, a forex demo account enables traders to practice trading currencies without spending their real money. Obviously, traders will feel like they are trading with real money when it comes to demo account.
Basically, demo accounts work in trading platforms to mirror live account. In reality, brokers want to earn traders’ business by providing traders with demo accounts at the beginning.
Advantages and disadvantages:
Unquestionably, forex demo account gives traders a chance to test their skills without losing their money. However, it also has some negative aspects. Therefore, we will look at some following positive and negative aspects of demo account.
- Determine if you like trading currencies: Popular currency pairs in fact are very volatile within midnight and early morning.
- Practice without risking money: Demo account allows traders to experience forex market without using their real money. Traders have a chance to familiarize themselves with orders and trade execution.
- Enhance skills and techniques: In fact, experienced traders always try to find new trading schemes to test trading platforms. Traders can determine whether they are using suitable strategies. As a result, they can improve their skills and techniques when they use demo account
- Test a specific platform: It is obvious that traders will have a chance to test trading platforms when it comes to demo account. They will be able to determine whether their trading strategies are effective and how they create charts as well as make transactions.
- Demo accounts may be limited in funds and duration: In reality, traders will be able to use simulated funds for free, but only a short period of time. It is because the best forex brokers want their clients to transfer to live account after practicing demo account.
- Real trading conditions are different: Obviously, demo account is only designed for traders who want to experience forex market without using real money. When you use live account, the trading conditions are so different because of real money.
- Data may be postponed or different: In reality, traders might not have a chance to get live account streams. It is because not all brokers will offer live data streams when it comes to forex demo account. As a result, you might trade with postponed data or incomplete data from what you can get in a live account.
- You do not learn the emotional cost of trading: Apparently, money in demo account is totally fake. Therefore, traders tend to ignore the loss when they use demo account. It is really important for them to take live account into consideration because the money is real.
- You have to reveal your personal information: If you want to register an a demo account, you have to provide your personal information such as names, addresses, and so on.
This is the top forex brokers with best demo account.
- Exness reviews
- Hotforex accounts
- XM accounts
- FBS accounts
In one word, demo account is regarded to be an effective tool which helps traders experience forex market and test their new strategies without any risk. However, you should not expect that you will successfully win money when using live account. Therefore, it should be noted that traders need to find some differences in ways of executing traders and how to execute trades effectively.