Nowadays, many forex brokers find ways to attract many traders to work with them. One of the best ways is to offer the best demo account, which is a demo program mostly for beginners who are totally new to the market. Firstly, let’s find out what’s “forex demo account”. As it is known worldwide, it is a trading account which uses virtual money instead of real money. You may wonder why it has to be the unreal money, but it has more benefits than you know. First, there is no risk or loss when you use this type of account, you can trade freely and safely with trading condition, platform and system of a broker. Because there are now more and more forex brokers with different features and specialties, demo account is a great way to experience them without any risk. Each broker has their own strong points and weak ones that we should trade with demo account first if we want to know more about their features.
As mentioned above, demo account has no risk and traders can experience a broker’s trading platform without any nerves or worries. They can also try their trading strategies in this program because there are also important trading functions, including adjusting or making alerts or making stop-loss orders. How about the information service of a broker? You could also check if that is effective or not by scrolling up and down. Good information service will give you a sign to make the right decision in trading forex. Charts of market is also helpful for traders in this term. However, a good demo account should do more to show that it is necessary for traders. It should help you learn more about the forex market, conditions, environment,…while giving more information for you to decide which kind of trader you want to become in the future such as short-term or long-term traders. Briefly, it is good for traders to start with demo account if they want to get familiar to a forex trading platform of the best forex brokers in the world and try their own trading strategies. However, this is not enough for a great trader.
As it is explained above, since there is no risk or loss, traders have no pressure or worries when they are trading, which may lead to misunderstanding about forex market and even more losses to their finance. Their strategies could not be used in the real market because there are much more differences when it comes to real money with real conditions. Traders can easily get shocked when they use the regular market as they are afraid of losing much money while wanting to trade and earn a lot. Following the recommendation of experienced traders, traders should start with micro account after using demo account, then trade a little amount of money first before trading confidently with your own ideas.
In short, demo account is still a great first step to get familiar to the forex system, especially for beginners. It gives you knowledge about forex market, conditions, environment,…while supporting and instructing with trading process. However, there are many differences between demo account and regular account that you can not trade with regular ones right after trading in demo program. The best way is to start with a micro account first, use small money to get familiar to the real conditions and market. Here are the top 4 forex brokers with the best demo account for your reference:
- Exness minimum deposit
- Hotforex minimum deposit
- XM minimum deposit
- FXTM minimum deposit