I want to know if there is a difference between demo and live account related to spread and market rates.
Demo account; Is it enough for learning?
- Thread starter vicknic
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Market rates are the same. Spreads can be different depending on the account type - e.g. fixed/variable or micro/standard/ECN.
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Which account type you will recommend to a beginner like me?
Thanks for your reply. Do you think high leverage is excellent to learn from?Others suggest that a beginner should use 1 to 1 leverage until they have things worked out.I think if you use 1:1 you need a lot of money to get started.I would appreciate if you can help me with that.
I would learn to trade with 1:100 if you are allowed to use such leverage by your country's regulations. It is a good level - you won't need too much capital too start, it is easy to do margin calculations with, it is widely available from the brokers, and it is not too high.
By trading in demo account provided, I know well about how the platform work. And also by that I can express and practicing my understanding about forex indicator and strategy as the preparation to enter real account.
It is true that you cannot experience the same trading conditions in a demo account, yet it is important to understand the importance of a demo account. It is a very valuable learning tool.
I agree with vicjon1995. Demo account has helped me so much to be profitable ; but keep in mind conditions are not the very same when you switch to a live account (slipping and time execution are worst).
Demo can help you in understanding the play of the market, practical side of trading and aids you in testing your strategies. But demo alone, I do not think is enough, one should club it with thorough learning, research as well. Apply what you learn in demo trading, that is how one can grow faster.
Demo accounts are useful for practicing and I don’t think they should be skipped over. It’s true that they can’t prepare you for the psychological aspect of trading but it’s still a good way for beginners to jump in and gain more knowledge. Also helps to avoid losses in the beginning in my opinion.
As others have said its s great way to get to grips with a new strategy and a new broker also.
You can fine tune entries exits etc
Also thd data feed may not be as accurate but it's quite close
You can fine tune entries exits etc
Also thd data feed may not be as accurate but it's quite close
I'd say learn to trade, practice and test different strategies using a demo account. Start trading on live account with little capital and learn to control your emotions and be as objective as possible while trading on the live account. Things like controlling and managing your risk and emotions can only be learnt on live account.
I agree. Demo accounts are a great starting point and I think all newbies should use it first, but you have to be aware that getting the same results on a real account will be more difficult, so it's important to transition carefully.
I went from demo to a live account, but chose a broker that only required a $10 deposit to do so. I actually deposited around $200 in the beginning, which isn't much but felt like a big deal being that I wasn't super confident and didn't have much money. The thing that I don't like about micro accounts is that fees are usually quite high and if a broker does offer perks (like bonuses, free withdrawals for specific account holders, etc.), then micro account holders almost never get access to those perks.
Demo trading does not make you 100% fit for live trading. However, it should be enough to know about the market. It gives us idea how dangerous this market can be. Thus, we know that we have to be very careful with our investment. Yes, micro account is a good option once we have traded for quite a while in demo trading. In a nut shell, demo trading is the first step of the trading ladder.It is a wise decision to trade with a demo account. A demo account can be used to learn how to open/close a trade and test other features of the platform. Meanwhile, do not feel a demo account can be used to learn all there is in Forex. So many successful Demo traders fail during their first week/month of trading live. Why? There are some factors responsible for this. These factors are present in a live account. Forex Brokers have made possible Micro Accounts for learning/trial purpose. You can deposit a small amount of money and start practicing. My broker offers a convenient micro account. You can deposit $1 and get a bonus of $5 (If your first deposit is greater than $50, you get 10% bonus). Bonus can even be withdrawn at anytime.
Some brokers give you a no deposit bonus for this purpose as well. The interesting part about a micro account is that you get to trade in Cents. For example, if you have $5 in your account, it will be shown as 500cents in your Mt4 balance. Your trading Volume should always be 0.1, so that your capital will last long enough for you to achieve you purpose.
The answer: No. A demo account is not enough. A micro account is also a good tool to learn more about Forex without risking too much.
