In today’s topic we will talk about how to use forex trading demo account. Below is the list of forex trading demo uses:
- It is used for beginners to trade in the forex market
- It is used for starting level traders to understand about the fundamental but important notions in the forex market such as short and long positions, spreads and pips, …
- It is used for testing trading platforms provided by forex trading brokers. By using the demo account trader can get more knowledge about the broker which they work with.
- Besides, traders can use demo account to practice or experiment their trading strategies
When using the forex trading demo account, it is never similar to things when trading with real account and real money. It is the fact they demo accounts are commonly used by forex brokers for many purposes, some big brokers want to cheat to get more benefits.
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You should use forex trading demo account for learning market’s terms and notions only. Here are some facts that make trading with a demo account becomes stupid:
The demo account does not reflect the reality
The demo account does not bring you the real market conditions and information because brokers create them to lure you to open live account and they will benefit from them. There are many facts that make forex trading account is not trustworthy:
The money is not real
Using forex trading demo accounts means that you are not working with your real money, therefore, it lacks the most important factor in forex trading – it is called risk. And you know that every trading market contains the factor of risk.
Because of the fact that there is no risk when working with forex trading demo account. Thus, the productivity you gain with demo account is not the same with the live account. There is no worry and mind challenge when trading with demon account. You can see the three essential aspects that make demo accounts not the same with live accounts
- There is no risk
- You do not trade with your real money
- You do not lose anything when your trading become hell
When trading with live account you become to worry about losing your money. You can not expreicane the challenges and struggles in your mind when trading with demo account. You will do things more carefully and seriously with live account because you can lose your real money and this factor is not appear in demo accounts.
You do not lose anything in demo accounts
With demo account you do not trade as seriously as you trade with real account. This is why they are different. The loss you suffer with demo account does not hurt you as the same when you lose your real money in the market.
Another aspect is when trading with live account, you make your trade after research and consider many elements of the market to earn money. This is the reason why I said that there is no risk working with forex trading demo account. You never feel a thing when losing money in demo account. Knowing that you can lose money and the ability to accept lost is very important to a forex trader.
Demo account is cheating
Demo accounts do not give you exact trading performance to lure you to open live account. But it is very crucial to beginner traders to know the real trading performance in the real market. Remember that your can not feel the important part of trading – it is a risk.
Almost new traders open live accounts after using demo accounts without knowing that forex brokers are cheating them. This is the reason why demo accounts can not compare to live accounts.
In short, the forex trading demo account does not reflect real market conditions as well as are able to be cheated. As a beginner to forex trading you need to know when is the proper time to use demo account because demo account is useful in some cases. Next, learn how forex brokers make money.