Demo account for a successful start in Forex
A demo account is a virtual account, which is almost identical to a real one with one difference: here you do not need to deposit real money. True, your earnings will also be virtual. But on a demo-account you can simulate any situation, choosing a comfortable deposit size, leverage, etc. Demo-account is an exciting economic game, where you “fight” with real competitors, and your prize is virtual money.
Advantages and disadvantages of a Forex Demo Account
Almost every broker has a demo account, and some even have more than one. For example, if a broker offers cent, classic and ECN accounts, then there can be three demo accounts with identical trading conditions. This allows the trader to test all three accounts, feel the differences between the different conditions and select the best option for their strategy.
Opening a demo account is even easier than opening a real one. At the broker’s website the trader fills in an application with basic information (telephone number, e-mail, etc.), after that he gains access to his personal cabinet, downloads the platform (for example, MT4) and connects the account to the platform. The number of simultaneously opened demo accounts is unlimited. And the main thing – no verification (identity verification) is required!
Why do you need a Demo Account?
- To get experience in trading. For a beginner trader, a demo account is an opportunity to get acquainted with functionality of different platforms (compare them), with indicators, expert advisors, etc. Trader sharpen his reactions and learns to analyze market and price behavior on a demo-account.
- Testing. Indicators or trading systems can be tested on quotes history. The downloadable backtest gives complete statistics: performance, equity graph (deposit curve), ratio of profitable and loss-making trades, drawdown level, etc. Trader decides if it is better to use the system on a real account.
- Chance to earn real money. From time to time brokers hold contests for demo accounts, where the winners can get money for a real account. It is ideal to start earning real money without any deposit.
- The opportunity to learn to control your emotions. Self-control, self-confidence, the ability to cope with failures – after some time of work with a demo account one can understand whether this way of earning is suitable at all.
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