For new traders, demo account comes out the best risk-free environment to start with brokers and forex on their first days. Along with welcome bonuses and demo account contests, no one could say no for the demo accounts.
In the market, almost all brokers offer real account and demo account registration. However, they bring different experiences and quality. Some best demo accounts, in my opinion, are:
I can understand what beginners feel when they start with forex and why the chosen demo accounts. I do the same if I’m a newbie. However, even the best demo accounts are good at only some points. The advertisement told by host brokers is not 100% true.
Hence, what should you look forward to demo accounts?
- Which demo accounts are the better?
Market Maker and STP brokers make standard demo accounts. Those are happening with the standard spread, standard trading cost,… For me, they reflect real forex transactions better.
ECN brokers launch another type of demo account, we call it ECN demo accounts.
In general, two types are the demo and what happens in trading is just illustration and risk-free. But ECN demo accounts are not as practical as standard ones. Therefore, I would like to vote for standard accounts.
Why not ECN?
In comparison to standard accounts, I do not value ECN as much. The reason is that ECN accounts do not reflect real trading in forex. It happens opposite to what we expected.
– ECN accounts occur incredibly easy for all traders. Beginners should have known that actual transaction has twist and difficulty.
– Winning too easy can cause over-confidence, which leads to the unexpected loss for inexperienced traders
– ECN accounts have got more slippages, and volatiles than other demo accounts and trading conditions are not stable.
For those reasons, I would like to direct beginners and new traders to try their luck with standard accounts. ECN brokers should be future’s concern when you have gone through enough moments in forex.
- What should beginners look forward to the best demo accounts?
If the demo account is a big concern, what benefits do they bring to beginners?
Firstly, they are free, and no risks are hidden. Demo accounts are register free, and traders do not have to deposit or invest anything. That means if traders lost the transaction, they do not lose any money of themselves. For me, it’s a secure start because for any amateurs, saving as much as possible at the first business is the most wanted.
Secondly, demo accounts teach you basics about forex. Demo accounts allow users to do trading in demo procedures. In general, the procedures are like to trading at realistic. After several lots, beginners can have specific knowledge about what they should deal with forex. It’s evident that they only know what really happens by trading using real accounts. Free practicing is safe to try, though.
Thirdly, there are contests for demo accounts. Contests offer winner really huge prizes which could knock out any traders’ mind. Winning the contest is the challenge before you come to the real transaction. For me, battles are the most competitive time while using demo accounts.
- What should not beginners look forward to the best demo accounts?
Anything has another side which people do not look forward to, so do the best demo account. Even the best demo accounts, standard or ECN, have backward:
- Brokers make up the quotes and change all the time. In real trading, the quotes and figures in demo trading environment are not the same as what traders start with demo accounts. In general, they are not such easy.
- Because of no risks, traders tend to trade by demo accounts with no severe calculation. , and the money is not yours. I can understand why they do not invest much thinking and strategies while using demo accounts
- Competition in demo account rarely happens when in fact, high race is typical when people trade real lots.
- Contests attract experienced traders to attend due to the prize. Skilled people are smarter in trading and for beginners, gaining bonus money become much more challenging. Experienced traders have robot trading and strategies for contests. Beginners can barely beat them by what they’ve learned from little first lessons
- Cent/ Micro accounts
Why demo accounts have been retained with drawbacks. Brokers have improved another type of trading forex accounts so-called Cent/ demo accounts. Exness and XM are the best forex brokers who offer this type of account. To start trading, people must deposit at least $10. The lots are made with $0.001 or even smaller. Cent/ Micro accounts can fix disadvantages of demo accounts such as:
– The loss happens, and it urges traders to start thinking and calculate their strategy. Traders are paid back by what they trade successfully.
– They have competition happening during trading, even on a smaller scale.
– The more time to practice. Traders have ten days to start with demo accounts and learn. But in Cent/ Micro account, they can have the time of exercising up to 3 months with a little investment.
In general, Trading using demo accounts should happen quick and solid. There is something you can keep after using demo accounts but, something should be left behind, even you use the best demo accounts.