MORE TRADE the best forex demo accounts – MORE UPGRADE your trading skills of forex
For beginners, trading forex seems quite new and strange to them. They want to learn how to understand forex world and trading strategies in a safe way, but in a complicated forex world, the safety of your own account is placed a high priority.
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So, forex demo accounts might be the leading and smart choice for most beginners. The advantage of demo account is you don’t need to deposit real money and all trading conditions provided are also better. After they master how to trade and have experience, the real account will be preferred.
This outline below will depict 3 stages of any traders.
My advice on practicing demo account is that you should use it until you can reach a very high rate of winning. In addition, you feel skilled and confident in trading with real accounts. Please keep in mind that, demo account quotes are quite different from real account’s. Cent/Micro accounts are suggested to trade after using demo accounts. It takes a long time (can be some weeks or some months) to trade with the best forex demo accounts. Standard accounts are advised to apply for the next step.
After having a close look at several accounts and doing research in best forex brokers for a long time, I narrowed a lot of demo accounts down to a list of top 3 best forex demo accounts. More details can be viewed as follows:
– Exness Mini demo account
– XM Standard demo account
– Hotforex standard demo account
– FXTM standard demo account
- What are standard accounts?
Some criteria are listed below to identify a standard account. And of course, many people considered standard accounts as the most popular accounts. As usual, standard accounts will be provided with trading conditions as follows:
- Standard lot size
- Standard transaction cost
- Standard spread
- Standard leverage
- Standard commission/fees/deposition
- Standard fund/segregate accounts
- ……
As far as I know, ECN account is a good choice for forex trading. But please remember that ECN is too changeable. There are a lot of no-quotes, slippages, gaps… Moreover, its quotes are not stable. You can spend a lot of months to trade, but you are still considered as a new account. My advice for more suitable account is standard accounts.
Standard accounts should be traded for months to years. When you want to become an expert, trading ECN is a smarter option to minimize your trading cost and the risk of trading against Market Makers.
- What type of demo accounts should beginners start with?
In general, there are 2 types of demo accounts: Standard and ECN demo accounts. You should begin with standard demo account at the first stage before moving to another account. The next step is to trade with standard account. At this time, you will become familiar to its trading conditions. And you will be more confident and skilled for the next trading stage.
* I recommend you don’t trade ECN demo account!
ECN demo account is very different from real ECN. The bad news is the brokers can’t use the real quotes for ECN demo accounts. Besides, ENC is the most volatile account, so it’s hard for you to keep track of your trading plan. They just try to use better and stable quotes for ECN demo account.
If you win in most of your demo accounts, it’s not really good news. When you trade real ECN, the majority of winning is almost zero. It just helps to build your confidence but nothing in real ECN. It makes sense to trade real ECN account after the next step.
- What are the differences between forex demo and real accounts
Many traders think that there aren’t any differences between forex demo and real accounts. But you can see that the differences will only be identified until you jump into and trade in. It’s not a big surprise if a beginner wins a lot of money from a demo account. But everything is totally different if a beginner loses a lot of money when trading with a real account.
The reasons can be explained as follows:
– Demo account quotes are rather different from real accounts’. The brokers want to adjust the quotes to be better for traders. They want beginners to win and win. That’s the necessary condition to open a new real account and deposit money in a real account.
– You will become over-confident and possible to achieve money in trading real accounts. You think it’s a lot better and easier. The money in demo account is not real, so you can easily follow risk management. In real account, you can lose your real money whenever. The traders don’t tend to follow risk management.
- Who needs to trade demo accounts?
To avoid risk, any traders can also open a demo account. At first, they don’t have any knowledge of forex trading. They open demo account for learning and discovering about forex world. Sometimes, they want to practice trading without losing or taking any disadvantages.
Once they feel like and consider forex as a good chance to get money, they will seriously participate in forex trading. Micro/Cent accounts instead of demo accounts will be highly appreciated.
- How long you should beginners practice demo account?
It’s necessary to learn forex trading with Cent account. This type of account is regarded as the best type of practice. But if you want to start with demo accounts, this stage should be a short time. Three days is enough for you to practice your demo account. After that, you should move to Cent account which is the best account for beginners. 10$ of deposit is suitable for a month of trading. It’s a low rate of learning fee.
But this small amount of money is in return for how to learn to trade in real trading conditions. In some cases, you can withdraw profit if you’re outstanding and lucky. The duration of trading Demo and Cent accounts should last 3 months. In the short run, some brokers can win but they will lose afterwards in the long run. To test your trading strategies and those accounts, a 3-month period is a suitable suggestion of time.
Again, please keep this list of best forex demo accounts in mind and don’t hesitate to trade if you want to build up a good foundation in trading forex.
– Exness Mini demo account
– XM Standard demo account
– Hotforex standard demo account
– FXTM standard demo account
This article is brought to you by Mr. Bruce Kovner, a collaborator with Brokersguru. Brokersguru is a forex review website from Bangkok, Thailand. Just like its name, it is truly a guru when it comes to forex brokers. It shows readers who is good, who is bad, who is reliable and who is not.
