A demo account is a trial version of a live trading account. Using a demo account, a beginner can practice forex trading risk-free.
How to open a demo account?
Before opening a live trading account, we strongly recommend you to get started on Forex with a training account, or demo account.
Indeed, it is a perfect way to explore a trading platform and learn how to carry out trades because a demo account bears the same features as a live account. The main difference between them is that a demo account is “funded” with simulated money, so all profits and losses are fictitious.
Apart from newcomers, a demo account is helpful for traders with forex skills as it enables traders to experiment with unfamiliar financial products and trading strategies.
Advantages of trading on a demo account:
- You will practice skills of forex trading;
- You will learn how to analyze Forex;
- You will test and streamline your trading strategy in a virtual forex environment without risking your money;
- You will develop your own system of risk management;
- You will get to know the ins and outs of a MetaTrader.
Directions for opening a demo account
- A demo account can be opened only through a MetaTrader trading platform.
- After the setup file is downloaded, launch a special app to install the MetaTrader platform.
- After the trading platform is installed, you should launch it. Now you can open a demo account. In the upper menu, select File -> Open an Account.
- Now fill in all fields in the registration form. Choose the type of account you would like to open and specify a value of an initial deposit for your demo account. This amount will be automatically credited to your demo account. Now you have simulated funds to be used in your training. A deposit amount is always specified in US dollars.
- After all fields in the registration form are completed, click on the “Next” button. In the pop-up window, you will see a password and number of your demo account. Make sure you save or memorize this data.
mportantly, a trader can open as many demo accounts as possible. So you are free to open a separate demo account to practice a new trading strategy on the MetaTrader platform.
To become a successful professional trader, you do not have to start trading with big investments. A demo account is a wise solution to launch on Forex. If you develop your own vision of the market, success will be just around the corner.