Best Demo Stock Trading Account
A demo account for trading stocks works like a trading simulator on which you can practice stock trading without risking your own money. Despite the fact, that you can open a demo account for stock trading basically with any broker that features stocks on its platform, it is advised to pick a company with which you might trade in the future. The reason being, once you get used to a platform on a demo, it is easier to switch to a real account within the same trading platform. There are a couple of important broker's characteristics on which a trader who is looking for the best demo stock trading account should focus. Let's review them:
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If you do not want to fall to a scam broker, regulation should be the no. 1 priority. A regulatory body oversees all actives that a regulated broker does and should there be any issue, you can always report the broker to the given regulator which will analyse and chase the broker to find out if they haven’t done any wrongdoing against you. The most reputable regulatory authorities are the UK’s Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC) and Cyprus Securities and Exchange Commission (CySEC).
Secondly, verify that a broker features stocks that you want to trade. Each trader has different needs and while one might be okay with a few dozens of shares, another trader would be disappointed with such limited offer. For that reason, before you register with any company, even with just a demo, make sure that you are going to find your stocks on the broker’s platform.
The more you have to pay on fees, the more your stocks have to rise or decline (depending on if you also short stocks). There are huge differences in what fees brokers charge so don’t take this aspect lightly. Fees can often make or break your success.