TRY A DEMO ACCOUNT WITH THE BEST DEMO ACCOUNT BROKERS – WHY NOT?

TRY A DEMO ACCOUNT WITH THE BEST DEMO ACCOUNT BROKERS – WHY NOT?

Trying a demo version before working with real account is a habit of most people when they want to use a new product or service. Forex is not the exception. When joining into a broker, most traders would like to use demo account first to know more about features of that broker and then, decide whether they would work with it or not. This article will be showing some features of the best forex demo account brokers in the market for your reference before choosing your own suitable ones.

Here is the list of top best demo account brokers for your consideration:

  1. Exness accounts
  2. Hotforex accounts
  3. XM accounts
  4. FXTM accounts

Forex demo account:

What is the definition of “forex demo account”? Technically, forex demo account is also a trading account, but instead of using the real cash, it uses virtual money. By this way, it brings some advantages for traders such as no risk or loss of trades, safe place to trade and learn more about forex market,… This is also a good way to attract traders to work with the best forex brokers BRKV as traders could test their strategies and trading system.

Pros and Cons

Nevertheless, demo account has both Pros and Cons, which are listed as below.

Pros

Skills and techniques development:

With demo account, traders can practice and improve their skills and techniques. They learn how to execute a trade, make orders and transfer money through system. This is very useful and good especially for beginners.

Currency pairs preference:

You will know which currency pairs you would like even by trading with demo account. However, the most popular pairs seem to have the most volatile movements between midnight and early morning.

Trade without risk and loss:

What is more interesting than trading without losing anything? This demo account allows you to do that. You can also learn and study more about forex system for your further purposes.

Platform of trading preference:

By using the best demo account 2019, you will know which trading platforms you would like most. Demo account allows you to try and test the platforms whenever you want. Meanwhile, there are some features such as navigation, charts creation and trade executions, which are provided the same as those of real account. Bugs and problem can also be found during this time.

Cons

Delayed information:

It is said that the information of demo account is not real-time and live-stream and this may probably affect your trading movements. Moreover, this will also affect your decision in real market.

Cost for emotional trading:

What is the difference between losing $100,000 real cash and $500,000 virtual money? – Feeling. You will feel bad and negatively when you lose a huge amount of real money, which could affect your next decision. On the contrary, you feel nothing to lose even million of dollars which are virtual cash. This is called “emotional trading cost”.

Limitation:

There are 2 limits: duration and funds. Traders using demo account are allowed to trade with a certain amount of funds within a short time. This policy is brought by most brokers to encourage and urge traders to change into real account soon.

Conditions:

Conditions are very different between demo account and real ones. Because of this, most traders get shocked when they come into real account after trading for a long while with demo program. The bid or ask may not be as your expectation, which is very common in real market.

Personal data leaked:

When signing up a demo account, you are required to provide your name, phone number, address, email address,…, which may lead to the personal data leaked for other purposes.

Conclusion

Demo account is a good way to practice trading and learn more about forex. There are strong points and weaknesses of this account type that traders should be careful and conscious when using it.

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