I want to know if there is a difference between demo and live account related to spread and market rates.
Demo account; Is it enough for learning?
- Thread starter vicknic
- Start date
- Watchers 41
Market rates are the same. Spreads can be different depending on the account type - e.g. fixed/variable or micro/standard/ECN.
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Thanks for your reply. Do you think high leverage is excellent to learn from?Others suggest that a beginner should use 1 to 1 leverage until they have things worked out.I think if you use 1:1 you need a lot of money to get started.I would appreciate if you can help me with that.
I would learn to trade with 1:100 if you are allowed to use such leverage by your country's regulations. It is a good level - you won't need too much capital too start, it is easy to do margin calculations with, it is widely available from the brokers, and it is not too high.
I would like to suggest new traders keeping the leverage low in start as they might not aware of the market so using higher leverage means higher damages.
By trading in demo account provided, I know well about how the platform work. And also by that I can express and practicing my understanding about forex indicator and strategy as the preparation to enter real account.
It is true that you cannot experience the same trading conditions in a demo account, yet it is important to understand the importance of a demo account. It is a very valuable learning tool.
I agree with vicjon1995. Demo account has helped me so much to be profitable ; but keep in mind conditions are not the very same when you switch to a live account (slipping and time execution are worst).
Demo can help you in understanding the play of the market, practical side of trading and aids you in testing your strategies. But demo alone, I do not think is enough, one should club it with thorough learning, research as well. Apply what you learn in demo trading, that is how one can grow faster.
