What is demo account?
The answer is simple about demo account. People may see this in several websites, almost all of the answers are same. But let me tell you again about this, so that the visitors of this website who are newbie in forever market may know. “The demo accounts is an account that brokers offer to their traders to get the knowledge of live market with virtual currency, whether that is forex or stock market”. This is a simple definition. Let me elaborate this in simple words.
Traders should start trading with demo account. This is because they would be able to understand the market situation and movements. Traders can use demo account to try new strategy. New Strategies that traders learn or know in discussions with pro. This is to secure them to financial loss. What they gain with demo accounts? They gain knowledge and experience, they get courage to invest in market. Newbies understand that if they follow strategies then they can make money. They have live preview in shape of demo accounts.
Remember that some brokers offer demo accounts, they don’t give proper experience regarding love market, because it came into knowledge of author that when you are going to trade in demo account, you will not see big fluctuation in demo account when market is in peak. But in real invested account, you may see difference. These things can be learn with proper discussion in concerned forums.
Traders may see limited currency pairs in demo accounts, because some brokers do not offer all currency pairs in demo account. The demo account also has some difference in spread. Want to know about spread? Some brokers offer free demo accounts and some offer free demo, but first trader will have to deposit some money in real account, then they will offer you free demo accounts. This is their policy. If we see demo accounts in simple words then their are only three purposes of demo account. One is learning, second is checking their execution of trades and third is to try new strategy or expert adviser.
It is highly recommended to create a demo account before you invest money with any broker. Please have a look on brokers list to see some brokers you may like. After testing their Meta traders, demo accounts, execution and other qualities, it is highly recommended to invest minimum amount. The amount that you can afford to lose.
Watch video for forex trading demo account.