Forex Tutorial
May 29, 2017

Importance of Demo Accounts

There are a lot of platforms which help new traders get acquainted with the rules of trade. They do this by enabling those traders to practice trading strategies through demo accounts. What are demo accounts, one might ask. To answer the question in short, demo accounts are dummy accounts which are used solely for the purpose of practice. It is like “test-driving” a car in supervised premises before one actually takes it out on the busy streets. These accounts are of paramount importance; for without these, a trader would be completely lost when it comes to actual trading. These demo accounts prevent a trader from suffering losses early into his trading stint, and these also give a trader all the necessary ideas regarding what he should expect from the eccentricities of the liquidity market. No matter whether it is foreign exchange, stock trading or a trade in commodities, demo accounts are mostly indispensable for conducting trade online. Numerous ways are documented below, in which trading through demo accounts could benefit people: (information shared by URL deleted])

Teaches Traders to Link News with Price Levels: One of the greatest features of the foreign exchange market, when you compare it to the stock and commodity trading markets, is that the former is seen to move at a snail pace, when it is contrasted with the two mentioned later. However, this chiefly happens when there is no trading with leverage. However, once the trader has money in the Broker’s account, then they would see a huge change in the way the price fluctuates, specially if it is in response to big finance-related developments, or incidents related to political news.

The Platforms Can Be Understood: As already mentioned, all demo trading accounts assist the trader become acquainted with the ways and means of survival and profiteering in the market. Not just that, it can even give the trader a beginner’s guide regarding how to use a platform appropriately. Both of the above are quite important if one is looking to get off to a profitable start.

Teaches the Link Between Size and Profitability: No number of times is enough to emphasize on the size of a particular trade and how important it is for a trader looking to profit. Sadly however, its importance is not realized enough by most beginners. Though using a demo account will make them informed about the tendencies of currency movements that take place daily, if one cares to pay enough attention. In case a particular pair is extremely volatile, trading in large lots is a really bad idea. On the other hand, a currency which is stable for can be traded in big lots.

There’s Scope for Back-testing: If a trader is able to pick up a few strategies, then the first thing that they should do is to test how effective they are. However, a lot of traders are jittery on their first outing in real-time trade, so a demo account would be useful in aiding them to get rid of the frights by making them gain confidence in their strategies. This is done chiefly by allowing the traders enough practice by testing their methods on past, archived situations and see how the results turn out. This would give them an insight on how the market would react under specific circumstances.


Demo account is step for trader especially beginner they begin to learn forex trading, in demo account they can test skill and knowledge or system trading with free from losing real money because only use virtual money, making preparation in demo account might will minimize the risk because misunderstanding with the market, demo account can be place to learning in real market condition


demo account is a good start for newbies. I’m not the exception.
it helps me get use to the forex market which wasnt familar with me.
it’s risky market but with virtual money, I can free to learn through placing orders.


Not only for newbie, some trader experienced they still use demo account if want to backtesting ea or software before used on real account, and in demo account any trader can implemented system trading with free of risk


Demo accounts are very good as they give a real market experience to trader, trader could understand market behaviour. It also helps experienced traders in checking with their trades or predictions of market movement.


Might one msitake use demo account is often start in demo account use big initial deposit let say 5000$ in accout and this will become strong margin, but if trader already in real might not use sufficient capital might less than 100$ and this as weak margin if compared with 5000$, good in demo but bad in real because this is included one reason

Yes I think will good for learning if demo account uise equal money that want to prepared in real account, this is only for learning stage how to manage these money in demo account, if still often fail it’s mean in real account will not differ much

 Yes, demo account is very important, nowadays, many brokers make use of demo account. it’s no longer for newbies to get on with the trading environment, tool, platform, it’s more than that. Brokers like Tickmill, Hotforex, ENess offer demo contest for newbies and the prize is real money. Such campaign attracts many traders who join in every week. I think it’s a great advantage and we shouldn’t waste it.