Category Archives: Demo Trading

What is demo trading

Demo trading lets you speculuate in financial markets without any risk what so ever.

Beginners and experienced traders testing out trading strategies often use a demo account to practice.

In this brief article we will outline the benefits of demo trading.

What is a demo account?

A demo trading account replicates the same features and market conditions as a real trading account, but is used for simulation purposes and with virtual money.

Its perfect for testing out the trading platform and developing your trading skills, since a demo account is usually free, there are no setup fees or risk of actual capital.

What can I trade with a demo account?

You can usually trade all the instruments you could on real trading account.

In other words, the same prices and market conditions.

The only difference is that you are risking zero money.

What are the benefits of demo trading?

There are many benefits of using a demo account, below are a few.

Get to know the trading platform

The first benefit of demo trading is to get to know the trading platform, how it works, how to place orders, stop-loss / take-profit and so on.

Most new traders start out with a demo account and move on to a real account when they are comfortable with the platform.

Testing out strategies

Experienced traders use a demo account to test out their trading strategies before applying real money to them.

Investors and traders who use Expert Advisors or algorithms, often reap big benefits of demo trading.

By testing an algorithm with a demo account, they know if it works or not, and therefore fine-tune it before risking real money.

Where can I trade with a demo?

Almost every online broker offers demo trading, so there shouldnt be an issue finding a suitable trading platform to practice on.

Even brokerages the offers Bitcoin and other crypto currencies let you practice first with a demo account.

In conclusion

Trading with a demo account is a great way to dip your toes in financial trading. Many will reap benefits of starting out with a demo before risking real money.

Risk warning: If you decide to move on from a demo account to a real trading account, you should be aware of the risks involved with trading. Leverage especially will increase your risk and you should not risk money you cannot afford to lose.