If you want to work in Forex trading and start your way to invest, you do not have to invest your money in Forex directly, so most of apps provide you with an opportunity to train through demo accounts, which allow you to enter the Forex market using virtual money and real market data.

Therefore, in this article, we will provide you with the following information:

  • What is a demo account?
  • What are the benefits of creating a demo account before trading forex?
  • What are the advantages of the demo account?
  • What are the drawbacks of trading on a demo account in Forex?
  • Some companies that give a free account and its advantages.
  • How do you get high interest when trading on a demo account?

We hope you take full advantage and knowledge of all the information about the demo account after reading this article.

What is a demo account?

It is a fake account (not real), and the money that is in the account is fake money (unreal numbers), but this demo account simulates the movements of currencies in the market just like the real account.

The demo account provides you with all the features that it provides to the owners of real accounts, but with fake money, where prices and execution of deals and pairs are exactly like the real and you can open the demo account with the imaginary amount you want to start the demo trading, and there is no difference between the demo account and the real account Except that the money in the demo account is not real (fake) but in the real account it is real money.

What are the benefits of creating a demo account before trading forex ?

  • Forex demo account allows beginners to know all the different aspects of trading forex without any risks.
  • The demo account gives you the ability to start the process of understanding the trading platform, by understanding how to place orders and manage trade deals.
  • The demo account gives you an opportunity to create your routine and the right way to trade and try it without any losses.
  • The most important benefit that traders get when using a demo account for trading is to gain experience and practical skills for trading without losing anything from their real money, but the demo account gives you these experiences that will benefit you during trading on the real account later.
  • The demo account gives you a free trial and the ability to test the quality of the broker, as it is one of the best advantages that the demo account offers is the ability to test the quality of the service for the broker and help you verify the effectiveness of their programs, the trading conditions they provide and the quality of their services for you.

What are the advantages of the demo account?

  • Inexpensive, whether the demo account is free or paid (some companies offer courses to learn Forex and trading techniques and are not free but not expensive such as FX Leaders).
  • It gives you the same real experience with all its tools so that you can trade just as if you were on the live account.
  • The ability to make a free trial copy of any new method you want to use in trading and you do not know its results without losing any of your money.
  • Low risk because when trading on a demo account, you invest a very small amount of your own money.
  • There is no risk because when trading on a demo account, you are investing an unreal amount.
  • Experience the brokerage firm platform you want to deal with without losing anything.
  • A demo account is a lab to perform your experiments without losses instead of using the real account so that the rate of loss becomes high if you make a mistake.

What are the drawbacks of trading on a demo account in Forex ?

  • Some companies give traders on the free account a limit on the time you are allowed to trade through the trading platform, and it is usually only one month.
  • The amount of risk and focus on winning deals and preparing good plans in the demo account (The trader does not care about losing his money) is less than the amount of focus while trading on the real account.
  • Virtual funds provided in demo accounts make a trader tend to act carelessly while executing trades, and a trader spends a lot of money on the demo account on trades without worrying (the trader will not spend all of these funds if they are real).
  • Forex is one of the most dangerous markets in the world, and because of the constantly rising and falling prices, there is no guarantee that you will win or lose so success in the demo account is not a good enough indicator to assess your performance in a real trading environment.

Some companies that give a free account and its advantages

Forex has many markets, and each differs in some of the advantages that give it preference when compared to other markets, where each trader prefers a specific market according to his own needs; here are some markets and what distinguishes them from other markets:-

  • CMC Markets – the best for the most versatile trading platform in terms of tools.
  • Go Markets – Best for ultra-fast trade executions.
  • FXCM – Best for in-depth education and market research and multiple trading platforms.

 

  • How do you get high interest when trading on a demo account?

 

  • You must choose the same amount of money that you will use in the real account.
  • The funds in your demo account should be treated as real money, and you should organize your transactions while trading and treat them as real profits and losses as well.
  • Try to learn all the functions of trading keys while using a demo account to become an expert in using them when trading on the real account.
  • Be patient while trading, and you must create a trading plan to win your positions, because if you fail to make profits in the demo account, you will not be able to do it in the real account.

Bottom Line

-If you do not have a clear idea of ​​how to trade forex, a demo account will help you, in this case, to learn about its advantages and avoid unwanted deals that make you lose.