How to use a Demo Account


All Forex companies will offer both a live and a demo account. The live account is the real account in which traders will deposit money, trade and make profits. The demo account is a form of demonstration of the company’s platform, services and over all environment which allows traders to test it before committing to an investment. 

Demo accounts are free and very helpful for new comers who still haven’t found their confidence in trading, and are not yet ready to invest money. Opening a Demo account is very easy and can be done through almost any Forex broker, but there are ways to utilize the Demo account experience and gain the most of it. 



Firstly many companies will have a specific amount of virtual money deposited into the Demo account for traders to trade with, but a lot of them will accept a request for the desired amount to be deposited. The reason for that is because it really helps to trade with the same amount you are considering to invest once you open a real account. With the same amount you can test the positions you can open, the leverage you will apply etc, and have a very similar experience to the one you will have with your real account. Other details can be requested too, like the type of account, and leverage to customise it to the way you will be trading live. 

Another important thing to do is to keep track of all the trades you make. Even though you are not making any real profits or losses, you can see the virtual profits and losses on the platform. This way you can look back and learn from your mistakes as well as the right choices you made to gain profits. 

Through a Demo account you are trading with real timing and prices, learn how to use charts, indicators and how to watch the market. Utilizing your time and understanding market movements is key to making the right trading decisions. Learn the most you can from the news feed, to terminology to platform tools while you are using the demo account. 

Lastly keeping in mind that when you are trading live you will be dealing with the emotional aspect of risking your money treat every situation as if it was real, and prepare yourself for when you will really invest money. With an all rounded demo account experience you can learn a lot and increase your chances for successful trading once you go live. 

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