Becoming a professional trader can’t be done just by learning and going directly to the trading market, you need some definite understanding of your skills and knowledge in mastering how forex trading works. We have learned many things like this in other sub articles on our website. Not everyone can get the maximum benefit from forex trading, some of them have to go out of business and look for other professions that have much potential to produce. We don’t blame you for that, because of course you have considered the decision. It’s just that, if we may give advice, learning forex doesn’t need to be grandiose, you have to come to a mentor at an expensive cost, just understand through our articles and youtube videos, we think you can understand how forex works easily. Well, on this wonderful opportunity we will share interesting information for all of you about how to easily master forex with a demo account, only then can you jump right into trading with real money. You need to know first, before we continue this discussion, it’s a good idea to know what a demo account is and why it is provided by each broker. Here is the review.
Definition of a demo account in forex trading
One of the features provided by every forex broker on the internet is the demo account feature that can be accessed by all customers or members who have joined. This demo account is an account with virtual money values that each member can try to trade directly based on forex trends on the same day, by using this demo account, you are expected to easily understand how forex works after that. This demo account is similar to a real or real account when you have to make a deposit with real money, the difference is that the source of funds from this demo account is automatically virtual money that is given by the broker system to each user. You can learn this demo account as often and as long as possible until you really master the workings of the forex game.
It is not surprising that many successful traders were born because they often played with demo accounts before. The importance of learning this demo account will affect the way you trade in the future, from here you will be able to see whether you are a competent and disciplined trader or a trader who is just looking for short-term profits. In addition, using a demo account you can also carry out executions such as buy and sell or close trading positions according to the strategies you have learned according to actual market conditions. You cannot withdraw the demo account balance because it is a learning account and is provided free of charge by every broker you follow. Even if the balance on the demo account has run out, you can refill it automatically according to the existing nominal. The following are some of the purposes of creating a demo account.
Purpose of having a Forex Demo account
With the presence of a demo account, of course you wonder, what is the purpose of this demo account for beginner traders, it’s a good idea to take a look and see below.
- One of the purposes of having a demo account is none other than a means to mature or master the workings of trading in the forex market especially for those of you who still don’t really dare to use real money. If you are used to trading with a demo account, then in the future you can easily and boldly use real money. At least, with this demo account you can develop the right strategy in executing the market.
- Many experienced traders still use a demo account as a test of a new platform issued by a certain broker, this trial certainly wants to see again whether the software is effective enough or not. You don’t need to be afraid of losing money because this is a virtual fund that is free to use anytime.
- For a trader who is looking for a new broker, they prefer to use a demo account as a form of measuring the parameters of several components such as speed, server and so on from each broker they choose. So, it’s like testing whether playing trading at broker A is better than broker B, etc.
- For traders who have just joined the world of forex, a demo account gives everyone a real picture that balances in the forex world can be traded with a high risk factor. From here you also know that forex is high risk if you don’t go through the right strategy.
How to Create a Demo Account?
In general, to create a demo account is very easy, you just have to join the broker you choose as a place to trade foreign currencies. There are many choices of the best brokers and we have written about them in other articles. Please choose the one that you think is easy to operate and has complete features. In general, the balance on this demo account is limited to only 1 million, so every time the balance on the demo account runs out, it can be re-applied with automatic filling. No need to bother learning to trade with real money, just use virtual funds to test the extent of your ability to play the forex market.
8 Steps to Successfully Mastering Forex from a demo account
- The first step: Understand in advance what your goal is to play forex, if the goal is to invest and practice trading strategies. The demo account can be the first choice.
- Step two: What makes you like forex? Likes is not necessarily a hobby, think carefully because forex is quite high risk.
- Step three: Use a demo account as a means of learning and finalizing your trading strategy. Do this continuously until you really master it well.
- The fourth step: Look for a broker that has a demo account feature with a small minimum balance ranging from 100,000 – 500,000 to train you in developing such large funds into millions of rupiah.
- Step five: Never stop if you are still unsure about your skills and abilities, trade with a demo account to reach the point where you are ready with real funds.
- Sixth step: Consider carefully the use of a demo account, because not all traders can be successful with just virtual funds
- Seventh step: Always test each platform with a demo account to see every given component starting from the server, and so on.
- The eighth step: Know exactly your strategy in trading on a demo account because we often see that there are still many traders who lack discipline.
So, those are some tips for successfully mastering a demo account in forex trading. Thank you.