Forex demo account can be considered as a risk-free tool which can be used by anyone who have the willing of make money online from home via forex trading. Of course, it need a little experience for it. It is said to be risk free because it doesn't involved real money. You don't have to pay any real cash to use it. There are many forex companies who offers amateur forex traders with free account. Their goal is to attract the potential forex traders who intends to open a real account in the future.
But you have to ask yourself first : should I use a forex demo account or a real mini account to get familiar with forex trading?
First of all I need to say that features and use of a forex trading platform is the same for both forex demo account and a mini forex account. You can see the same spreads, use the same leverage ratio and follow the currencies with both of them. In spite of these similarities, there are also some differences between them which you should take into consideration before starting trading.
A free forex demo account, as it is named, a free service of forex companies to let the new customers step on the forex market. You can use an amount of fake money, which you can define, with this account. Since it is not your real money, you feel more comfortable and relaxed and you may do some operations which can be too risky in real accounts. Though, there is no risk for you with this account. You can learn the fundamentals of forex trading with a demo account but it gives you a big self confidence since you behave comfortably. And this is the bad side of a forex demo account. The success in a demo account will affect your manner while using a real account and this may lead big money losses that you can’t stand.
Mini forex account, which allows you to learn about forex trading, uses real money but a small amount of course. Regarding that you are using your own money even it is not too much, you do your operations and trade very carefully. A mini forex account makes you feel the stress and pressure of real forex market and open positions under these circumstances. So, it lets you live a real forex experience before going on with bigger amounts of money.
Consequently, both forex demo account and mini forex account are good ways to learn about forex trading. The matter is how you want to learn. Do you prefer learning by acting bravely and using fake money with a demo account or by operating carefully and also losing or earning money with a mini forex account?
No comments:
Post a Comment