Why does it have to be a demo program for a trader in forex market? There are many reasons to explain this issue and now we are going to find out more about the best demo account. What is “forex demo account”? It is a trading account but it is not normal. Especially opposite to the regular account, demo account uses virtual money instead of real money. Why does it have to be the unreal money? Because traders will face no risk or loss when using this type of account, and they are free to experience the trading condition, platform and system of a broker. It is very useful to try many brokers’ trading platforms since they are different from each other. In fact, each trader has their own specialties, strengths and weaknesses, therefore, it is good for traders to experience the trading system of a broker with demo program before deciding to work with them and start trading with the real money. This is also one of the best ways to attract many traders in the market.
As it is mentioned above, you can experience a broker’s trading platform with demo account but have no risk. This can be said to be a good chance for you to test your strategy, too. There are also important trading functions, including adjusting or making alerts or making stop-loss orders. Moreover, you can also check their effectiveness of information system by scrolling up and down to see if there is any perfect news about the market for you to make a wise decision. Market charts also indicate how well a broker demonstrates their service for their clients. However, a good demo account should help you not only with trading system but also the knowledge about forex, market,… It should also help you learn about the kind of trader you want to be such as short-term or long-term traders. In short, demo account is good for traders if they want to get used to a forex trading platform of the best forex brokers in the world and some trading strategies. But it is said by experts that this will not make you a great trader. Why so?
With virtual money, traders have no risk and then, they have no pressure when they are trading. They use unreal money with unreal conditions and therefore, the strategies used in this program should not be suitable in real market. Like everyone says, it is easy to get stuck and lost in the regular account if you are not aware that demo account is just a demo program. This will lead traders to misunderstanding about the market, especially for beginners. The advice is to start with micro account after using demo account, then put a small amount of money to trade first before you can trade confidently and strongly with your own good ideas.
In conclusion, demo account is a good start especially for beginners to learn more about forex market and experience the trading conditions and platforms of brokers in the market. It will help you find your type of traders that you want to become and also instruct you and make you familiar to the forex system. However, demo account is not like the regular account and so, there are more differences when you come to use the regular account. As it is recommended above, you should go with a micro account when you finish trading with demo account. Below are the top 4 forex brokers with the best demo account for your consideration:
- Exness demo account (check Exness minimum deposit)
- Hotforex demo account
- XM demo account
- FXTM demo account
