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TIPS FOR CHOOSING BROKERS WITH THE BEST DEMO ACCOUNT

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Nowadays, most of the beginner forex trading guides online that you can stumble across suggest their readers to choose demo account as the starter account for purely the purpose of practicing trading and learning the way the market works. And when they have gained enough experiences, they should switch to another account type such as Standard account and ECN account. Those guides are right for the most part, but there still are some incorrect points.

For a more detailed learning structure of a new forex trader, please refer to the plan below:

CURRENT TOP 4 BEST FOREX DEMO ACCOUNT

  • Exness Mini demo account
  • XM Standard demo account
  • HotForex Standard demo account
  • FXTM Standard demo account

1. What demo account type should beginners open?

Having tried out many other different options, I’d still suggest you to start your trading career with the standard demo account.as it’s the safest way right now. The standard demo account gives you ideal trading environment so that you can practice trading without losing any money, but it is limited in that way since you can’t really learn to manage trading risks and trading fees, which is why most people who have made the transition from standard demo account to the regular account often end up losing a lot of money.

Why is ECN demo account advised against?

ECN demo account is actually not that similar to the ECN account. It has way more stable quotes which lead to overall better trading performance. However, trading with these ‘improved’ quotes for a long period of time, you will find yourself having a hard time adjusting to the normal quotes once you make the transition from demo ECN account to the regular ECN account, which then can lead to potential losses of money.

2. What is the standard demo account?

Standard demo account is basically the regular trading account with standard trading conditions such as standard lot size, transaction cost, spread and leverage. It’s generally more beneficial to new traders, comparing to ECN account for example, because it’s more practical, safer and more suited for new traders’ needs. ECN account might be the go-to type of account for professional traders, but for those who’re still looking for trading experiences such as beginners, standard demo account is more preferable.

3. What are the differences between forex demo and real accounts

Forex demo account is advertised to have the same trading benefits as real account all the time but truth is it doesn’t, in fact the differences between these 2 types of account are actually quite large, specifically:

  • Demo account’s quote is way better and more stable.
  • There is no risk to trading with forex demo account since you’re trading under the demo environment. Nothing is real and everything is there to help you learn the forex market, not to help you make more money.

4. Which type of trader needs forex demo account?

As I have mentioned above, forex demo account is specifically recommended for beginner’s needs. Although I must say that this isn’t really the case anymore as most brokers nowadays offer a better alternative which is the Cent/Micro account. With Cent/Micro account, you only have to invest as much as $10 in order to practice trading under the real trading conditions for months on end.

5. How long should beginners practice trading with the forex demo account?

Obviously, everyone’s learning time is different. But we’d like to recommend that it should only take you 3 days to a week to grasp all the basic concepts of the forex market and forex trading. The next logical step that you should take would be to make the transition to Cent/Micro account to practice even more, or to the standard, regular account to try making some money, although it’s very likely that you will lose a lot in the first few weeks and that’s okay, most new traders tend to lose a lot before they win.

CURRENT TOP 4 BEST FOREX DEMO ACCOUNT

  • 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. Check it out at:https://brokersguru.com/

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