Forex and CFD trading is in its nature risky and only a small number of people can make money on this market. Most traders who fail jump on real account trading too soon, unprepared and they a get off to a bad start in their trading venture right from the beginning. The best part about this is that this can be actually very easily avoided with trading on a demo account. This account provides a safe place for anyone who wants to give a go to trading forex, stocks, indices, commodities and cryptocurrencies without risking their hard made money. Let’s have a quick look at what everything a demo account is good for:
- Touching the market with our own hands and getting the feeling of trading
- Testing a broker’s platform
- Testing and verifying trading plans and strategies
- Identifying our strengths and weaknesses (so you know what you need to work on)
Plus500 demo account
Plus500 is a popular CFD broker that features in its offer a free unlimited demo account. This account can be set up in a matter of seconds, the only required information is your name and your email address. A deposit is not compulsory. The broker has a no commission policy and the spreads are superior. Plus500 has a very intuitive trading platform and the customer support is available in 16 languages.
- Website: https://www.plus500.com (Review)
- Minimum deposit: $ 100
- Minimum deposit in order to create demo account:$ 0
- The time period for which the demo can be used: Unlimited
- The number of imaginary chips: $ 50 000 (currency of your choosing)
- Regulated: Yes, in Europe by the CySEC and FCA, in Australia by the ASIC
72% of retail CFD accounts lose money.
How should be demo accounted properly used
Simply put, the purpose of a demo account is to learn how to trade. However, that is easier said than done. In order to get the most experience from trading on a demo account, you need to act as if you were trading with real money. Only then you can find out, whether you will have a solid chance on the real market. The setting of your demo account should mirror conditions which you will have with your real account. Why would you trade 100 000 imaginary chips, when you don’t plan to trade with this capital on a real account? Why would you invest 25% of your funds in a single trade, just because you feel like it? I highly recommend doing the same things as if you really had your own money on the line. Otherwise, you might end up learning bad habits which cannot be that easily unlearned later.
Build a winning and working trading system
I love the famous quote “Fail to plan and you plan to fail“. It describes exactly what a lot of people come across in trading. Random trades without a proper plan don’t have any meaning and are most likely doomed to failure. If you fall into the category of people people who do not have a plan yet, then this is your time, because that’s exactly what a demo account is for. To prepare a strict trading plan, which will include everything (entry levels, exit levels, MM and so on). You need to have the ability to repeat your previous results and only a trading plan can provide that. There is no space for an outcome which you can not repeat when it comes to trading.
IQ Option demo account
IQ Option is another major player in the FX industry. The company has its own unique in-house built platform where one can start trading with as little as $10. A demo account does not require any initial deposit and can be used simultaneously with a real account, no time restrictions apply.
- Website: https://www.IQOption.com (Review)
- Minimum deposit: $ 10
- Minimum deposit in order to create demo account: $ 0
- Time period for which the demo can be used: Unlimited
- The number of imaginary chips: $ 10 000
- Regulated: Yes, by the CySEC
71% of retail CFD accounts lose money.