When To Use A Demo And Real Account

Discussion in 'Forex - Currencies Forums' started by fxstreet, May 29, 2019.

  1. fxstreet

    fxstreet Senior Investor

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    Every Forex Beginner like you must use a Demo account to get familiar with the platform. Learn how to use every button on the trading platform without the risk of losing your money. Once you have mastered the art of trading on a demo account, it is advisable to open a Mini or Micro Account like the Forexchief cent-MT4.DirectFX, and put what you have practiced to work. A mini account allows a trader to trade in lots of 1000 rather than 10,000 or 100,000 units. This allows for lower mandatory initial deposits and greater customization of risk management.

    Mini real accounts are best for armature traders to learn a profitable system and get use to the broker’s execution method on a real basis. A mini account will also introduce you to the emotional side of Forex trading
     
  2. J_C_Anderson

    J_C_Anderson Senior Investor

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    For sure, all these types of accounts are useful. First of all trader should start with demo trading to obtain the general understanding of what is going on at the market. Demo account is also necessary practice trading skills like placing and changing orders, drawing trendlines and other operations with the platform, as it is extremely important to enter orders quickly and without mistakes or mistypes that could led into losses. During demo trading trader also have to find interesting idea and build a strategy based on this idea. At this stage most of the traders move straight forward to the trading on real account. At the same time, real trading with new strategu could cause substantial losses, so it would be better to backtest each new strategy. It may seems to be boring and time consuming, but there are many tools to speed up this process. For example, special backtesting software like Forex Tester allows trader to check the strategy on historical data for several years just in a few minutes. As the result, trader will get detailed information on the performance of the strategy including risk-reward rati, win rate and maximum drawdown. Only after conducting backtesting and confirmation of the profitability the strategy could be used on real account. At the same time, it is better to start with cent account to reduce psychological pressure and possible losses, and pass to real account trading only after becoming consistently profitable
     
  3. Yordan

    Yordan Member

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    Some brokers don't offer cent account. They advice new traders to deposit $1000 and above for a start.
     
  4. fxstreet

    fxstreet Senior Investor

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    Those are the so-called top notch brokers. They have a very high standard and don't have time to deal with traders who invest $1 and still give them a headache.
     
  5. tradermuslim

    tradermuslim Active Member

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    Not all of them are top notch, they might be big as a company, but the term "top notch" includes the quality of their services as well. You are right about Forexchief on the first post. They have very good accounts types, affordable commissions and spreads.
     

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