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It is clear that most of traders do not want to use their real money to make transactions when they first come to forex market. It’s because they want to check forex market before investing their real money. Therefore, the best forex brokers 2019 offer their customers demo forex account as a way to help traders test trading platforms as well as their trading strategies. It is highly recommended that traders should choose the best demo account because of some notable features. Choosing the best demo account will enable traders to fully understand the mechanism of trading platforms as well as others vital aspects.
- What is forex demo account?
In fact, forex demo account is a type of account which enables traders to practice trading currencies without using their real money. Basically, demo account has some features which are the same with real account. Obviously, with the support of demo account, traders will be able to test something before investing their money in live account. Brokers decided to offer their clients demo account because they want to earn traders’ business when they start using real money.
- Advantages and disadvantages
Traders have many chances to test brokers and practice their trading strategies when they use the best demo account without losing their money. However, there are still some disadvantageous points that we should know.
- Advantages:
- Make decision whether you want to trade or not: It is the fact that popular currency pairs have a tendency to move volatilely within midnight and early morning.
- Experience without losing money: You can experience forex market without losing your money because the money is fake. You will familiarize with orders and make transactions.
- Enhance skills and techniques: Traders will be able to devise new schemes to test their strategies and techniques.
- Test a specific platform: You should test the trading platform that you are trading. When you test that trading platform, you will have a good understanding of charts and trade execution.
- Disadvantages:
- Demo account might be restricted in funds and duration: Although brokers offer traders to use funds for free, they only offer traders a certain period of time because they want traders to use live account after using demo one.
- Real trading conditions differ: Trading with demo account means you are using virtual money. Therefore, it is not sure that there is a bid or ask meet your standard.
- Data might be delayed or different: You might have to work with delayed data or incomplete data because not all brokers offer live data streams for traders, who are using demo account.
- You do not learn the emotional cost of trading: In fact, trading with demo account does not make you lose your money. Therefore, when you trade with live account, you might make different decisions.
- You may reveal your personal information: If you want to register a demo account, you have to provide them your personal information like name, address, and so on.
These are best forex brokers with the best demo account in forex market at present.
- Exness minimum deposit
- Hotforex
- XM
- FXTM
- Conclusion
In conclusion, using demo account is regarded as an effective way to experience forex market without any risk. Traders will be able to test many things when they use demo account. On the one hand, they have a chance to test trading platforms, trading conditions, and their trading strategies. On the other hand, you should not expect demo account as live account. It is advisable that you should make careful decision before you make investment by using your real money. You should find some differences between demo account and live account when you trade in forex market.
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