By definition, the best demo account is a type of account which is mainly for account holders to discover and experience their trade in forex market by using virtual money instead of real cash. Most of the forex brokers will help their potential customers to simulate trading conditions and experience in forex world. Because of the forex complex and changeable market, a lot of price will be available on their own trading platforms, depending on each broker.
As you know that each trading platform is totally different from another and has their own strengths and weaknesses. Some of them can be proprietary. The typical features of demo account are to let their potential clients to get familiar to the methods and performance of each trading platform functions. Brokers never allow their customers to take risk of using real money in learning the “ins” and “outs”.
As a trader, demo account will be a good chance for you to test the best forex brokers in the world trading platform. With this account, you can use your virtual money to trade and test your trading strategies without any risks. In addition, it helps you to discover all of the popular trading functions, such as: set up alerts and create stop-loss orders. After a period of practicing demo accounts, just take your time to evaluate how intuitive your controls feel, how easy it is to have an understanding of the charts and statistics when you look at, how professionally you can drill down to choose useful information to make your trading decisions.
Moreover, a demo account will simulate the trading in real forex and help you test several strategies. You can learn and practice your trading style – for example, you can practice your longer-term position holds or your own strategies with comfort and without risks.
Obviously, we can’t deny the advantages of demo accounts, but many experts believe this kind of account is not enough to become a trading wizard. In a fluctuation world of forex, the backward analysis can become a wrong decision in your strategies because you can’t keep pace with the trading changes.
One more thing, you can lose your motivation and emotion of investment because you’re trading with the virtual money. You don’t have feeling of losing real money. Sometimes, it’s easy to become a victim in the forex market like playing a game, so, you should have a cautious attitude to demo account like a real account.
Some cases in demo account will never happen in real account, for instance – you can come up to unrealistic expectations that lead to disappointment or financial disaster. Please keep it in your mind. For this reason, it’s strongly believed that you should get started with a micro account after using demo account. You can invest a small amount of money until you are ready to have a nice idea of what really works.
Using demo account is a wise way to learn and experience your forex trading platform. It makes you feel a good step on forex trading world. Your trading style can be shaped. Your brokers will give you instruction and support to be gained the best experience. But you have to take demo account into serious consideration. A demo account alone sometimes doesn’t get an exact match in real-world trading. It’s urgent to get started with the right platform after using a demo account – a micro account is a good choice. This makes you avoid risk of trading and get more experience in real trading world.
To sum up, I strongly advise you to partner up with one of the top 4 forex brokers that offer the best demo accounts as follows:
- Exness minimum deposit
- Hotforex account
- XM account
- FXTM account