In the last few years global trading volumes in the foreign exchange markets have reached a record high as more and more people are actively trading in Forex market. Thus trading in a live market can really be a daunting task in the beginning and this is why it is always suggested that your first forex account should be a Demo Forex account. You should also make sure you do plenty of research, so you feel totally confident. Read more about X Markets here for a head start. Forex trading is nothing new and with each passing day more and more people are getting to it and thus there is no looking back now. Trading in Live account can be really risky and thus one should always avoid getting into it in the beginning and initially learn the trick and tips of the trade. It is of utmost importance to learn the features as well as how to use the trading platform before trading to a live account. Fortunately there is a provision of using a demo account on each platform where no real money is at risk and one can learn how to trade and other features prior to going live.
Most of the brokers and especially well known and reputed brokers allow potential customers to download a free demo version of their trading software. This is of great use as the customers gets to use the software and get acquainted with the platform’s layout and use it how to trade. One should understand that each platform is different though majority of the brokers use Meta Trader 4 and 5 which are also known as MT4 and MT5. There are many brokers who use additional platforms which are different as they are the proprietary to the broker and thus this platform may not be available with other brokers. Thus demo accounts are virtual accounts with virtual money which is connected to a real trading platform which receives real data from the market and one can trade on it. This means that you can trade in a real market scenario where you can open and close trades and it won’t cost you anything and your trading commands are not sent to the real market however you will not feel any difference. In simple words demo accounts realistically simulate real trading and the only difference is the real money. Now, when one should use a demo account is something which needs to explain. Initially using a demo account is important in two situations firstly when you are a beginner and you are not familiar with forex trading this is when you should start with a demo account. Secondly when you wish to test a trading platform before going live with the real money is when you should opt for a demo account.
The main intent of using a demo account is to control the trading platform as it should never happen that you trade in real money without knowing when to open and close a trade. Thus do a research and open a demo account with Best ECN Platform and start practising trades. One you have through idea of how to set your take profit and stop loss than you are somewhat ready to deal on the real account on the love trade with real money.