As a trader, it is essential to carefully understand the details of trading Forex online but not many traders can master all of them. However, they might have the basic knowledge of trading Forex and the way it works. Therefore, it is better for all trader to use what they learned about the Forex by using a trading environment without any risk.
With that basic idea, we will introduce to you the most common trading account that every Forex brokerages in this market offer to their clients. It is called the demo trading account.
The first thing you need to know is that this type of account requires no funds and also it provides a no-risk platform for you. It is easy to open one demo account in some minutes. When you have done the registration on the site, you are now a fresh tradesman and you are able to begin your transactions in a real dealing environment with some help from the demo dealing money.
It is clear that any gains you make from a demo account is not real money and you can’t have them since they are from the demo funds that brokers provide. Nevertheless, it is a good chance for you to protect yourself in this safe place but also a chance to increase your ability in trading Forex online.
Fundamentals of a Demo Account
A Forex demo account is a trading account in which the account user can experience the Forex market using virtual cash. It is given by most best forex brokers in the world so that potential clients can have a simulated experience of what it will be like trading the Forex market. However, they can’t be used as live accounts. For example, either you lose or win in your transactions, your account balance is not affected by it. We all know that it is just fake money in demo account and we use them just to practice trading.
One more thing about the best forex demo account is that they allow you to learn Forex trading thanks to the live website access that has real data. However, only some intermediaries will offer them since they have no benefit from it. Below are some positives of the use of demo account in trading:
- Realize the operation of Forex market.
- The recent data and the live speed at which changes happen.
- Demo trading will cost you nothing but also you will get no money from it.
- Perceive the Forex plans.
Properties of a Demo Account
There are some notable attributes that a demo account gives out for traders and they are highly appreciated as the live Forex account. They are as follow:
- Dealing prices at real live rates
- Bulk fake money credited in demo account
- We can trade online 24/5 for the week
Normally, the demo accounts operate with the properties and the abilities in duplicating the live markets. However, there several times they can be 100% imitated. Therefore, there are always fundamental differences that can aid us to differentiate them from the real accounts.
This will lead to the short of dependencies on the real market. Moreover, the presence of varied products can be watched that may not be permitted for trading on the real accounts.
The operating characteristics of the demo environment whilst executing the orders may become non-volatile fast trading as well as the short of denial; with the absence of faults or not. There are some cases that the margin requirements stretch from that of the actual accounts regarding the renovations to the demo accounts. They also may not be the same as the live accounts.
This is the list of the greatest Forex demo account brokers: