To access the broker’s platform, using a demo account is highly significant. It helps you to test your skills and gives you enough room to make the strategies. Hence, using a demo account is highly recommended for both new and experienced traders.
Let we see demo account vs real account differences :
1. Execution problems are not included in the demo trading: Regardless of the reputation and liquidity status of the broker, he may not always save your orders to keep you from falling. In the extreme conditions, this is reality, and it happens. The execution of the demo accounts is not equal to the real accounts. At the moment, there seems to be no solution for this solution, all you can do is to keep yourself away from this. Forex broker demo account different trades than live account – this problem will be solved in the future – I hope.
2. Amount: Usually, the amount in the demo account is much higher than the one you deposit. This way, every loss you face in the demo account becomes meaningless and hence becomes “monopoly money.” As a result, you are not fully prepared for the real situation. In addition, big position sizes will be become useful, and when you face the real scenario, the small loss will lead to lose huge money. Solution to this problem is to ask your broker to adjust the money in the demo account as equal to your deposits.
3. Demo money might be added by the brokers: Although this is not a common scenario, but if this comes in front of you, then you must reject it. To continue practicing at the time of low funds, a resubmission of money might take you out of this situation. On the other hand, this could become a type of computer game where you always have the option of starting a “New Game.” Solution: Request your broker to withdraw demo funds from the account.
4. Once you make a start, move on: In the ideal scenario, if you have completed demo account with a broker, then you might be willing to put your real money in. This is because now you are familiar with the platform, and the broker is buttering you to bring your real money. The real objective of the demo account is to first practice the moves and then carry on with the real account. This seems good for everyone but holds on for a minute: If you are familiar with a broker, then it doesn’t always mean that he is the right for you. Just for testing, you must try out another broker and compare the results. The second test will be over in a little time, and you will get the best possible results.
I must repeat that forex demo accounts are very important, especially for the new traders. Hence, before making a deposit for the real account, a trader must test all the techniques properly. This is just like a real-world scenario where the simulation things are not always equal to the real ones.
So what do you think : demo account vs real account forex trading ?