You may have heard about the best demo account brokers, but do you really know about this type of account in forex? Like other trial version or demo program, forex demo account is offered by brokers to attract many traders to experience the trading platforms, conditions and environment before they can decide if they will work with that broker or not. So what is “forex demo account”? It is a trading account but in demo program, with virtual cash and unreal conditions. In this term, virtual cash plays a very important role for demo account. Why so? Because the money is not real, traders will have no risk or loss when trading or making any transaction. As a result, they are safe to experience and try the trading condition, platform and system of a broker. This is necessary in recent market because there are now more and more brokers, the more brokers we try, the more suitable ones we will find for our own. Features and specialties of each broker can also be accessed and tried by traders.
Because traders can experience a broker’s trading platform with demo account without any risk, it is a good chance for them to test their own strategies on specific trading conditions, system and environment. Demo account also has important trading functions, including adjusting or making alerts or making stop-loss orders. Summary chart of market is also used with information service by traders to make the best decision in market. Accordingly, information service is assessed by its convenient, fastness and timely. Those things are what a good broker should have. But that is not enough. The best forex brokers BRKV should also help traders learn more about forex system, market and conditions,… It should help them find the kind of traders that they want to become, which are short-term traders or long-term traders. In conclusion, demo account is a good start for traders, especially beginners, if they want to know more about a broker. However, this is just a start of something harder and realer after.
There are also disadvantages of demo account, which will be listed as following. First, due to the lack of experience in trading with real conditions and real market, traders will be shocked when they come to use regular account. They have no ideas of regular program and all they have is the experience with unreal conditions in unreal program. Moreover, the conditions are different between demo account and regular ones, which makes difficult for most beginners. Second, traders get trouble when they come into reality because they cannot use their current strategies that were used in demo program. Why so? Because it is not suitable anymore. In regular program, they will trade with real cash, face the risk and even loss if they are not careful. They are just worried and that is enough to make it difficult for them to start any transaction. Now there is an advice which suggests that traders should start with micro account after using demo account, then put a small amount of money to trade first. By this way, they will get used to with regular account before they can make any right decision.
After all, this article helps you know more about forex demo account, the advantages and disadvantages of it as well. Anyway, demo account is a good choice if you start working with a new broker or you are beginners. You will have a chance to experience the trading conditions and platforms of brokers in the market. You are also instructed to decide which kinds of trader you want to become. But the most important advice, as mentioned, is to get used to the regular program after finish the demo account.
This is the list of 4 forex brokers with the best demo account:
- Exness minimum deposit
- Hotforex minimum deposit
- XM minimum deposit
- FXTM minimum deposit