When you have plan for your trading forex, I advise you not to begin with a live account right now because the chance of losing at first time is nearly predicted. As a result, you will be discouraged. Apparently, several traders have tendency to choose the best demo account 2019 before getting started with a real account. Choosing a right demo account will help you have chances to understand all the mechanics of trading & analysis and experience your ideas of trading.
- Understanding of forex demo account?
As you know that a Forex demo account is used to create an environment to practice trading currencies by using virtual money instead of real money. A simulated account is made for you to feel like you’re executing with real money.
A Demo account often works within built platforms to imitate a real account. The brokers giving their potential traders demo accounts hope to get their income until their traders begin with a real account.
- Advantages and disadvantages of demo accounts
In truth, we can’t deny the obvious advantages of a demo account. Several opportunities will be given by the best forex brokers BRKV to discover the trade without risking money. But some disadvantages can be unveiled in a demo accounts. The following information will go into detail on advantages and disadvantages.
- Identify if you’re interested in trading currencies. Typical currency pairs often change the most between midnight and early morning.
- Practice with safety guaranteed. If you are a newcomer to forex, you should spend a lot of time getting familiar to place orders and execute trades. With a demo account, you’re not in hurry to begin with a live account.
- Enhance your skills and strategies of forex trading. A lot of expert traders want to try out their new strategies and trading ideas. A demo account is a perfect tool to do that without risks.
- Test a detailed platform. When you select a trading platform, your choice of making your decision will mostly depend on your personal preference which is the most basic part. When you’re on this platform, you can follow how easily you can direct, make charts and undertake your trades.
- Your funds and duration will be limited. As a trader, you won’t be allowed to practice so many times and so long with a simulated fund by brokers. Instead, they often set a limit for your trading times. They want you to move from demo accounts to live funds because they want earn from you as fast as possible.
- In trading conditions, a demo account is different from a live account. Often, an account with virtual money will be used in a demo account. As a result, it’s very complex for a bid or ask to meet your criteria, an actual trade will make you surprised because it differs from a demo account.
- Trading Data may be blocked. Sometimes, the live data streams with demo accounts can be stuffed in progress. This leads to lack of necessary information to analyze and make decision.
- Your trading emotion will be lost. Once you work with real money, your emotion is real. For example, in a demo account if you lose $100,000, you just think it’s like playing a game and you don’t care about that. But if you lose that money in real account, it seems so painful and regretful. This can change your mind in making your decision in a demo account.
- Your private information can be exposed. Commonly, if you want to register a demo account, it’s required to sign up for a demo account with many registration steps. They can consist of: your name, your home address, your email and a lot of personal information.
To sum up, I’d like to give my suggestions to find out the brokers with best demo accounts:
Please take note that Demo accounts also have pros and cons. You should have thorough understanding of demo accounts before starting with a live account.