Did you know that forex trading is the single largest global market that operates around the clock? It is also one of the most complicated industries that require a mastery of not just analyses skills but that of its players especially the brokers. And there is no better way of getting both skills and a deeper understanding of the broker’s operations for both novice and active veteran traders than by opening a demo account.
The fact that the best forex brokers offers a free and sufficiently funded demo account gives you no reason to jeopardize your portfolio by trading real money off the bat. But what is a demo account? Must you start your career trading in a demo environment? And what are the best demo accounts currently available? Here is everything you need to know about forex demo account trading.
Best 6 Forex Demo Accounts 2019
How do you open a demo account?
Different forex brokers have different requirements for traders wishing to open demo accounts on their platform. Some will ask for comprehensive details and even demand for identity verification while others just need your name and email address. These requirements are however well explained in every broker’s demo accounts terms and conditions.
Is demo account available on all platforms?
Yes, demo accounts can be hosted on virtually every platform, from MetaTrader, cTrader, web traders, and even smartphone applications. The forex broker is, however, free to host their demo accounts on all or some platforms of their choice.
Can I trade live without going through the demo?
Yes. If you have had previous experience in trading or have enough money to risk as you learn, go straight ahead and start trading in a live account. You can also trade without going through a demo account if you rely on trading signals or are using a reliable expert advisor.
What are the other key differences between real and demo accounts?
Apart from trading real cash and virtual currencies, no matter how well your trades are in a demo account, you can never withdraw profits from the account. Additionally, while real forex account trading account keeps the trader on edge, forcing them to think long and hard before making a market move, demo accounts encourage laxity and comfort.
Can I open two demo accounts with the same broker?
The answer to this is entirely dependent on the broker. But most do not allow for the creation of extra demo accounts or even extension of the demo trading period after expiry. The more flexible ones will only allow for the creation of one account at a time after either expiry or exhaustion of the allocated virtual currency.
How long does the demo account last?
Some last a lifetime with an unending supply of virtual cash. Others last a few months or weeks with the possibility of extension upon request, while some last around the same time with no option of renewal.
Can I renew my demo account after time lapse?
Yes, if your trader has set out a provision for its renewal. In most cases, you have to get in touch with the forex broker’s customer support team and request that they extend your training time. In other cases, you only have to wait for the first one to expire or exhaust its credit reserve before requesting for a top up.
Who needs a demo account?
The demo trading was initially meant to help market beginners get a grip of the market's operations. Over the years, however, they have evolved and extended their scope. Today, anyone who needs to understand a new broker, tests a new strategy or even tests an expert adviser needs a demo account.