Are you thinking to start online trading, but you want to understand better how it works? The answer is, to begin with a forex demo account.
Today all the best fx brokers offer the opportunity to train with a free forex virtual account before starting with real money. In this page, we also explain to you what a MetaTrader 4 demo account is and its advantages.
Read this page to learn how to trade with ZERO risks!
The range is between $ 10.000 to $ 100.000, but in all the cases there is enough capital to test as long as a trader needs.
What is a forex demo account?
A forex virtual account is like a normal forex trading account, with the only difference that it uses virtual money.
Exactly! This type of trading allows you to trade as much as you want with the virtual money.
All the trades you open are in a demo reality. This means you can trade without any risk of losing money. At the same time, all the profits you make can´t be withdrawal because you earned virtual money.
It´s a very useful tool for all the traders without experience.
With a demo account is possible to do everything is possible in the normal trading. It´s very helpful to build your confidence in forex trading. Many traders use it to test their own trading strategies and test them.
A forex demo account is a tool that can be used by professional traders too. The main reasons are because they want to test the platform speed, spreads, and commissions.
All the fx brokers today offer the opportunity to open a trading demo account without any minimum deposit required.
How to create a forex demo account
As we already mentioned, all the brokers offer the opportunity to open a forex virtual account for free. It can be a MetaTrader 4 demo or their own platform one.
The first thing to do is to choose the fx broker. There are different things you need to consider in a broker: the spread, the maximum leverage, and the commission are some of them.
All the brokers in this list offer a free demo.
After that, it´s necessary to sign up with your personal details either you open a MetaTrader 4 account or a normal one.
Normally it´s required your full name, an email address, a phone number and a password.
Finally, once you entered in your account, you just need to select the demo account version and you can start trading with the virtual money.
It doesn´t have an expiration date, it´s usually available as long as a trader needs.
Most traders use it for around 2 weeks.
Why? Because the majority 15 days are considered the perfect time to test a demo account.
In 2 weeks there is the opportunity to practice with all the short-term strategies and different indicators. But most of all it´s the perfect period to open and close different long-term positions.
After opening a forex demo account, in fact, it´s very important to decide which trading strategy to use.
Meta Trader 4 Demo Account
Every trader has the opportunity to open a free Meta Trader 4 Demo Account to test his trading skills. There are 2 different ways to open an MT4 demo account:
- On the Meta Trader 4 platform or App
- On a Broker using the MT4 platform
Let’s see the difference between the 2 methods.
1- Meta Trader 4 Demo account on the MT4
If you want to open a demo account to test your trading skills and your strategies, you can directly do it on the Meta Trader 4 website or App.
The only thing you need to do is going on the MT4 website, sign up and select the demo account option. By default, you will have a demo account with $ 10.000 and no commission that you can use as long as you want.
There is also the opportunity to add as many demo accounts as you want with the starting capital that you desire. the bad aspect of this type of demo account is that you can only trade on the major currencies:
The use of indicators is not possible too. This is a solution for those beginners who want to see if trading could be something that they can do.
2- Meta Trader 4 Demo Account with a Broker
The other option is to open a demo account using a broker which has the MT4 platform. An example is BDSwiss.
In this case, it’s necessary to open a free trading account directly on the broker website and then download the MT4 application from the same website.
Once you have the Meta Trader 4 application on your desktop, you just to add your broker in it and log in with your personal details.
These types of demo accounts have from $ 10.000 to $ 100.000 and are better to test the chosen broker, you can trade in all the assets and have the same trading conditions you have in a real account (spread, commissions, swap, etc.).
The bad thing is that once you finish the money in your demo account, you can create a new demo account with new virtual money, but we must say that $10.000 are enough to do all the possible test.
There are also trading platforms where is possible to open a free demo account in their private platform which is not the Meta Trader 4.
Let’s see now how!
IQ Option Forex Demo Account
Don’t think that doing trading online it’s easy.
You need to learn to read the graphics and understand how the market could move.
This tool is perfect to practice and the use of every indicator, how to use the different trading strategies and become confident with the trading platform.
A demo account can help you to do all of this without any risk. In fact, we already said that with a demo there isn’t any real money involved in your trades.
You will just use virtual money.
There is nothing better than the forex demo account offered by IQ Option.
IQ Option is a regulated fx broker which offers a free forex demo account with $10.000 for every new trader without any deposit to practice with. They don’t work with the MetaTrader 4 platform, but with their own one which is much better.
It’s possible to open a minimum trade with just $1. This means that you can open many trades to test every strategy and indicator.
This is what IQ Option offers:
- forex demo account with $10.000
- the minimum position of $1
- same condition as the real one
- no need to deposit to have it
This is because the broker knows that traders need some time to learn how to trade forex. With these conditions, everyone has enough time to practice and feel confident to suddenly create a real one.
*Risk warning: Your capital might be at risk
Why it is good to have a Demo Account
For many traders, who have not a clear idea about how trading works or how good is a trading platform, having a demo account is essential.
Investing virtual money helps for many reasons:
- Test your own trading strategy
- Test the trading platform
- Test if trading is something for you
Each of these points is very important before start trading. The majority of people who were not profitable in trading have made some crucial mistakes because they didn’t try with a demo account.
Sometimes can be that trading isn’t something for you.
Other times can be possible that there isn’t a good feeling with the chosen platform. Finally testing a good trading strategy and see if it really works is also very important.
For these reasons, it’s always a good move start trading with a demo account.