The term “demo account” is not strange for most of us. In recent years, the use of trading demo accounts for training or practice has greatly increased. Now, almost any Forex broker offers demo accounts for beginners, in an attempt to convince them that a demo account is the best choice to become (as a result) an excellent trader.
And, as it happens, people have questions about everything. Are demo accounts a sufficient condition to become a successful trader? The proposed market conditions correspond to the real accounts? Is this just a ploy to squeeze money out of me?
Now there are so many accounts that there is not enough time to talk about everyone. However, let’s look at the most important facts about them and find out what their real value is.
1 – Find out if Forex is right for you
Try and find out. Not all of us are suitable for this type of investment. Training here is not the easiest and some prefer managed trading accounts.
2 – Trade without the risk of losing money
Perhaps the biggest plus when using a demo account. There are no real means. It’s like playing video games, but with the ability to get real knowledge.
3 – Practice to improve your strategy.
Testing new strategies in the real market can be difficult and risky. So even experienced traders use demo accounts to check if their strategies work and how to improve them?
1 – Execution time is better than on real accounts
It is believed that demo accounts have a better execution time than real accounts, and the risk of delays is usually very low. When trading on real accounts, you may notice a slight difference between the price you saw while placing the order and the one on which it was executed.
2 – More money than you really will use
Opening a demo account, you will be offered an initial capital of $ 10,000 and above. The fact is, not all of us are ready to immediately invest that amount of funds.
3 – unemotional trade
Believe it or not, the main component of trading is emotions and how you manage them. If you have nothing to fear, emotions and does not arise. You should accept your emotions and learn how to properly control them and increase the level of success.