The liquidity of Forex is more than enough to scare away a novice trader. The complexity of this platform and the market volatility – these two make a scary pair for beginners. To help new traders accustom themselves to Forex, without losing any money, demo trading platforms were introduced. Using these lets traders learn the art without investing real-time money. Forex demo accounts simulate real-time trades for traders where they can learn to strategize and work with the market.
All beginners are suggested to begin with a demo trading platform before going live, here’s why:
1) There’s No Risk: Forex demo accounts were made to eliminate all factors of risks. Demo accounts facilitate trading with virtual money. This means that you can trade to your heart’s content, experiment various strategies and learn how Forex trading works – all without losing a single dime. In all real-time Forex markets, even small mistakes will birth huge repercussions and lead to tumbling losses. Demo accounts eliminate this problem and let beginners tread at their pace.
2) Real-time Environment: Is the process of learning how to swim, faster in a bathtub, or in a pool? In a swimming pool! This is because it gives real-time experience. The same applies to trading, demo accounts give real-time exposure to markets, but without traders having to risk any real-time money. This creates an amazing environment for him/her to get used to trading platforms and market fluctuations, along with learning to devise and implement various trading strategies. ic markets discount
3) Testing Broker Support: Customer support is very important in Forex trading. Several brokers will effortlessly scam novice traders. This is why it is essential to trade on a demo account before going live. This gives you the chance to test how reliable your broker is and see if he offers all the facilities needed to carry out a trade efficiently.
4) Learning the Platform: Trading platforms vary from broker to broker. Trying to trade live directly without knowing how to use a trading platform will lead to catastrophic outcomes. There are several features a platform provides, and the first step to becoming a good Forex trader is to learn those! From analyzing markets to tracking chart movements, utilizing your trading platform right will give you a huge edge. Forex demo trading lets you work with the same platform and learn the various features it accommodates.