Demo account; Is it enough for learning?

Discussion in 'Newbie Questions' started by vicknic, Mar 20, 2014.

  1. vicknic

    vicknic Confirmed ProfiForex Representative

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    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 Bonus can even be withdrawn at anytime.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.
     
    Last edited: Mar 20, 2014
  2. Aby123

    Aby123 Active Trader

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    Thank you for taking time sharing your knowledge. A Lot of beginners like me really appreciates. :D
     
  3. Fxpipper

    Fxpipper Master Trader

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    Yes, you're right, a demo account should be used more for working out how to place trades, exit it,, and so on. YOu can use the demo to practice trading for a short while. But a micro or mini account is the perfect account to practice on, since you would be trading in a live environment..
     
  4. globalfx

    globalfx Trader

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    No true words have ever been spoken. You are correct in all sense. Sometimes I see these demo traders brag about making 1000pips bla bla bla, and I just shake my head and say " Wait till you start a live account" lol..
     
  5. garena

    garena Active Trader

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    It's absolutely no, not only forex, in any field of life, we can see no people can only training and get success in real battle (work or examination). Something only happen in reality and we have to gain experience from real.
     
  6. Exness Support

    Exness Support Active Trader

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    Demo Accounts are good for learning. However, you should consider the the demo account money as real money then only you will be able to understand the psychological aspect of trading
     
  7. Fxpipper

    Fxpipper Master Trader

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    Sorry but I would have to sort of disagree with the last post..as regards the "consider demo money as real", for that really does not pan out. Most new traders are not able to do this, for obvious reasons..
     
  8. vicknic

    vicknic Confirmed ProfiForex Representative

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    It cannot work that way. What is not real is not real and there is no two way about it. The human physiology isn't artificial. Emotions when faked does not give the real impart. So in order to understand the real feelings that comes with trading, a live account must be used.
     
  9. Fxpipper

    Fxpipper Master Trader

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    Yup, that's it..this is why it makes more sense to go live with a small account..
     
  10. BarryM5

    BarryM5 Trader

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    Best way to have few demo accounts and few micro live accounts with the same brokers. This way you will definitely see the difference.
     
  11. praise

    praise Banned

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    The main purpose of demo account is for practice. You cannot compare demo account with micro account since real money is involved in micro account. Demo account is best for learning because real money is not involved, so you will not be affected when you run at loss but you will be affected when you lose in micro account since real money is involved.
     
  12. Aby123

    Aby123 Active Trader

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    Basically, demo account isn't enough for learning. When learning how to trade forex, there are a lot of reads and things one must to consider and understand. Only demo account is used when your ready to apply the skills and knowledge you gained and/or trying to make a plan/trading strategy..
     
  13. shl2412

    shl2412 Banned

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    Of course demo is the first step of practice and it will grow your practice and experience in forex trading, demo account is the mother of forex trading and every newbie should practice on demo account about six month then he can become a profitable trader.
     
  14. vicknic

    vicknic Confirmed ProfiForex Representative

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    Practicing for 6 months with a Demo account is not a very good advice. There are people who have practiced with micro account and start making money in less than 3 months. Did you understand the part where you can use $1 to open a micro account and trade like you have $100? And how much would you trade with if you spare a $100 for a micro account to enhance your knowledge. Coupled with the use of leverage e.g 1:500, you money will last you enough to learn the basic. If you spend 6 months on a Demo account, then you will have to spend another few months learning how to cope with live trading.
     
  15. Easy Trader

    Easy Trader Master Trader

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    Demo trade to learn everything a trader needs to know to operate. Continue trading demo risk free until proven profitability 6 months to 1 year(or longer) with one trading method. There may be 1-10 years of searching for that trading method that will deliver this profitability(even though most simple methods work fairly well with very diligent discipline). Then go live with a small account(500$) Now tackle inner demons and bad emotional habits and money based beliefs.
    Live trading without long term results of profitability on demo is foolish, the market usually keeps traders in limbo for years until they submit to the correct disipline or quit.
    A micro account @ 1:100 leverage opened with 25$ is already over leveraged before a single trade takes place, based on sound money management of course. Its simple! Demo to learn what the heck all the charts,indi's, nuances are. Continue to demo until you have discovered how to consistently pull money from the market, if it takes 5 years....so be it!. Now your mind is free to tackle the "real money" aspect of it, which is no big deal if you do the first part of the process correctly. There is no need to spend 100$ to learn or "enhance knowledge" people preaching this have no clue or are snake charmers trying to get in your pocket. Would a surgeon start cutting people open before he/she truly (deep down inside) proved themselves on "demo" first....No!, but here we are going live after 2 months of trading 8 different systems.....not to mention we're expecting an income that would dwarf the surgeon's.
     
    Last edited: Jul 17, 2014
  16. Rambo35

    Rambo35 Confirmed PaxForex Representative

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    No demo account is not enough for learning. The only good thing what you can learn on demo account is how to use the trading platforms. When it comes how to learn trading the best way is through small real account with your own real money.
     
  17. Pionex

    Pionex Trader

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    I used Demo for 2 months and recently I went live with $600. I noticed things aren't the same. I wish I had started using live account ever since, I would have started making progress with my live account by now. I am very careful with my capital because I don't have another money to trade forex.
     
  18. Fxpipper

    Fxpipper Master Trader

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    As mentioned earlier, second what others have said on demo account - the demo account should only be used to learn the ropes, and to test out strategies..long term demo is not advisable. Demo accounts vary widely from real live accounts so it makes perfect sense to go live with a micro asap..
     
  19. BFS

    BFS Active Trader

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    Demo is good for a very start, just to practise manual trading and learn indicators, after that only live with micro deposit. Live and demo accounts even with the same brokers are very different, price quotes may be even different.
     
  20. Rambo35

    Rambo35 Confirmed PaxForex Representative

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    As you answer your question I do agree with you. You can only learn how the trading platform works on demo account and nothing else, the trading part and developing a trading strategy can be learned only on live account.
     

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