You may be a beginners who are new to the market or an experienced ones who have been trading for a long time. But you may not know the best demo account brokers that you should choose when you need. This article will help you choosing the best of them.
What is forex demo account?
It is a trading account but not like standard account, it uses virtual cash instead of real money and allows traders to practice trading and learn more about forex in a safe trading environment without any risk. This is a good way to attract traders to work with brokers as they give chance for traders to test their strategies and trading system.
Strengths and weaknesses
As common, every account type has its own strengths and weaknesses. Demo account is not the exception:
Decide which currency to trade:
There are many currency pairs in the market but the most popular ones tend to have the most volatile movements between midnight and early morning.
Improve trading skills and techniques:
Since forex is complicated itself, it takes time to get used to it before practicing and building your own skills and techniques. By using demo account, you can learn to execute, make orders and also test the strategies. It is very useful with backtesting system and also good when coming into real-time execution.
Trading without risk:
It is very comfortable to trade without any risk or loss. Moreover, you can also learn and study more about forex system.
Test trading platforms:
It is very necessary because not all trading platforms are suitable for each trader. Some traders find this platform interesting but some do not. Therefore, they should have their own test of platform for trading before deciding to work with the best forex brokers BRKV. You can check some features such as navigation, charts creation and trade executions. Any bug or problem can also be found and feedbacked during this time.
There are limits of time and funds when you use demo account. Brokers let you use the funds but not very much or high. In common, this amount is very little and also used within a short period of time. Why so? Because brokers want to encourage traders to move into real account as soon as possible.
What is delayed? The data or information. In fact, the data in demo account is not live or updated in time, which can affect your trading move much. This will also affect your decision in real market.
There is a truth that most traders get easily shocked when they come into the real market. All the conditions of demo account are much different from those of real account. You can misunderstand that the bid or ask may be the same as their expectation, but it is not true.
Emotional trading cost:
In real market, there is a kind of trading cost called “emotional cost”. This cost often happens when you have lost an amount of money and affects your next movements or decisions. It’s different between trading and losing $100,000 with demo account and real account. Apparently, losing real $100,000 will make you think more carefully before executing the next transaction, while you have nothing to care when you use $100,000 virtual cash.
Personal information stolen:
If you use demo account, your personal information may be stolen for other purposes. It is because signing up a demo account requires your name, phone number, address, email address,…
Here are the best demo account brokers for your consideration:
- Exness reviews
It is a good way to practice trading and learn more about forex with demo account. However, there are strong points and weak points when using demo account, traders should be very careful when starting to join the real market.