Let me guess, you got interested in trading Forex, started learning, got yourself sodden with the basics of trading Forex and the holidays crossed your path. Now you don’t know what to do next, you need to put your learning into practice but how? The answer is pretty easy, a forex demo account, sometimes called “paper account” or “paper trading”. An account like this has many benefits for beginner traders that want to practice trading Forex.The best way to practice Forex Trading is using a Forex demo account, take advantage of the benefits of paper trading
Let’s put it this way, you started learning about forex trading, but you don’t want to jump to the market without solid knowledge to minimize the risk of losing your money. As I told you before, your safest bet is to get a forex account from xm group, that way you can keep practicing your trading without risking money.
What is a forex demo account?
One of the first things you do after starting to learn about forex is finding a trading platform. Depending on your experience and knowledge, most of those platforms will offer a free forex demo account. So a demo account is a type of account that’s offered to new customers by trading platforms, allowing them to use the platform without using real money.
But, you can take advantage of this. How? Besides testing the trading platform, you can use it to apply your knowledge, backtest your strategies, and more. A demo account works on the real market, so you’ll be practicing and placing fictional trades live in the market.
You should be taking full advantage of this 100% risk-free account.
How long should you use a forex demo account for trading?
That depends on how much you practice and backtest. You know, the more you practice, the better. But if you are dedicated to this and practice like 4h per day, In my opinion, you should practice on a practice account for 5 or 6 six months in a row. Evaluate your trading to see if you’re prepared for the live market.
Basically, if you have consistent profit for a long period of time while using the demo account, then you’re ready to go live. Remember the less money you lose the more profitable you’ll be.