Do you know about forex demo account? This is one of the best ways to start in forex market. Here are the top best demo account brokers:
- Exness reviews
What is forex demo account?
Forex demo account is not a real account and is not used in regular trading program. Instead, it creates a safe trading environment without any risk or loss for traders to practice trading and learn more about forex. The most different thing is to use virtual cash instead of real money. Most brokers offer demo accounts to attract more traders in the market as they give chance for traders to try their strategies and also test the trading system. It is also a good way to assess a broker before working with it.
Pros and cons
There are good sides and negative sides in an account type. Below are some pros and cons of the best demo account brokers for your consideration:
Chance to practice without risk or loss:
Most traders fear of losses and risk, but not in demo account. Because this uses unreal money, so there is not any loss and risk for them. It gives chance to practice and learn more about forex system.
Practice skills and techniques:
Forex traders need to develop their skills and techniques as forex is not easy to understand well. By using demo account, traders can improve and practice their skills while testing more trading strategies, too. This is very helpful in backtesting and translating to real-time execution.
Check a platform for trading:
Trading platform is not suitable for all traders. On the contrary, each trader finds interested in different platforms to work. Therefore, it is necessary for traders to have a quick test about the trading platform, by using demo account. Basically, demo account’s platform has some common features as that of standard account. Traders can check some natures such as navigation, creating charts and trade executions. You can also find if there is any bug or problem in a trading platform.
Decide which currency is suitable for you:
Currency pairs, which are kind of popular in the market, have the most volatile movements during midnight and early morning.
Limits in funds and duration:
Indeed, your demo account’s funds are limited within a period of time. It means that most of the best forex brokers BRKV will allow you to use the funds, which is not very much and usually under a certain level of amount. The funds are also valid in a short time. It is because most brokers want you to go into regular or standard accounts soon.
Different conditions from real trading environment:
This will make traders get trouble when they come to the real market. They are used to trading with virtual cash, no risk or loss, and then, they get easily shocked because they will use the real money, real risk but different conditions. The bid or ask that are fit your standards may not be in the real market.
Live data or real-time updated may not be at all brokers in both demo account and real account. It may affect to your decision.
Emotional cost of trading:
This sounds strange but let’s imagine. You have traded and lost $100,000 with demo account. You may feel nothing and also, learn nothing from it. But if you spent $100,000 and lost all of it (or maybe just half of it), you will feel totally different and this will affect your next movements. All of these are called emotional cost of trading.
Personal information leaked:
Your information will be collected and used for other purposes when you sign up for a demo account.
In short, there are always good sides and bad ones in an account type. It is recommended to be conscious and wise when changing into real account.