Do you know what a Forex demo account is?
Do you know the advantages of a demo account?
This type of trading account allows you to operate in the markets with virtual funds, to be able to practice without risk.
In this article, you will learn what a demo account is, why you should consider opening one, how to open it, configure it, the best ways to use it, and much more!
A demo or demo trading account allows a trader to simulate a real trading environment, without jeopardizing the capital he wants to invest. This allows you to start trading online for free, quickly and without risking real money.
Did you know that the global trading volume in the forex market reached a record level in 2020? Due to the volatility of the global economy, more and more people are actively trading in this Forex market. However, trading in a market where more than $ 6 trillion is traded a day can be very intimidating at first.
Therefore, before putting your money at risk, it is recommended that the first trading account you open is a demo account, since it works as a free stock market simulator.
The Forex demo account can be opened in just a few seconds, allowing you to start trading the forex market instantly and without any financial risk. We invite you to continue reading this article to learn how a demo account works, its benefits and the best way to use it.
If you can’t wait to start trading in a risk-free environment it only takes a few clicks to open a demo trading account. After entering your name and email address, you can start enjoying various benefits, such as the ability to operate from any device (Windows, Mac, Android, iOS, etc).
Free market information and news in real time.
A complete and quick start guide.
Access for 30 days or for life when opening a real account.
Isn’t it about time you joined the great global trading community? You can open a free demo account with IQ Option by clicking on this link and get $10,000 to start trading for – There is no limit to the account, as there are with many other brokers:
What are the benefits of a demo trading account?
If you talk to any experienced trader, the list of benefits that they would attribute to a demo trading account would be endless, especially for novice traders.
Having a demo trading account to practice in the forex market is like having access to free Forex training. In fact, this allows the trader to apply their learning without risking real money. After all, the most successful people, regardless of their field, are those who have learned and practiced their skills immensely. The same goes for forex traders. If you want to try a demo account with $10,000 for free with out any risks, you can click this link and sign up with IQ Option. One of the most safe and reliable brokers on the market just now.
Most of the Forex brokers offer the famous MetaTrader trading platform. By opening a demo account with IQ Option, you can familiarize yourself with the platform’s tools without risking real money. This allows you to learn how to open positions, close them and how to use trading indicators.
Instead, it is better to know how to use Stop Loss and Take Profit orders so that the broker and the trading platform can manage the transactions when you are not in front of the screen. Therefore, a demo account on the stock market could be the most profitable solution in the long term.
When it comes to risking money to win it, many emotions can come into play.
⇒ Euphoria and overconfidence can manifest after some winning trades.
⇒ Frustration and doubt, on the other hand, can appear after some losing positions.
These emotions can often interfere with the trader’s judgment when it comes to making a decision about the next trading opportunity.
Trading a Forex demo account helps you identify these emotions so that you can build a routine and deal with them. Most novice traders don’t know what kinds of emotions they will face when they win or lose, so it’s probably best to find out without risking real money.
If you are learning to trade with IQ Option, after taking the free Forex Begins course, you may use a Forex demo account to practice the tools and strategies you have learned. You can also get more information about trading through the training section on the IQ Option website.
Being able to trade without risking real money often allows traders to be more creative when it comes to finding what works best for them.
Forex market traders can trade 24 hours a day, five days a week. So when is the best time to negotiate?
➤ Most traders prefer to trade close to the opening of the markets in Tokyo, London and New York, around 00 hours, 8 am and 2.30 pm, respectively (Spanish time). However, the best moment will always be the one you can dedicate to the market without distraction.
One of the biggest advantages of the forex market is that you can develop a trading routine that fits your professional and family life. However, when you start out, it can be difficult to find this perfect routine. You certainly don’t want this to lead to poor decisions, which would result in real capital losses.
Trading a demo account can help you find the routine that works best for you, without risking real money. Remember, trading is a marathon, not a sprint!
While the benefits of using a demo trading account speak for themselves, there are some negatives to be aware of. Only after understanding them will you be able to use your account in the best way.
Create a trading plan for a real account and apply it to a demo account
The first step should be to create a trading plan for a real trading account. To build a good trading plan you must answer the following questions:
✔️ When are you going to trade in the market? Try to follow the same schedule every day, create a routine and thus learn more about how the market is behaving at that moment.
✔️ What markets do you want to trade? Focusing on a few assets first can be a great way to apply the knowledge acquired through your Forex training. EURUSD and USDJPY are among the most popular currency pairs.
✔️ What strategies are you going to adopt? After completing your training with Super Trader, decide which tools you will use to make decisions and develop a strategy around them.
✔️ What risk management tools will you use? Risk management is an essential part of long-term success in trading. You need to decide in advance what position size to take for each trade and how it will be closed, be it a loss or a profit.
The most important element here is trying to replicate the way you would trade with a real account. You can then implement the plan and modify it, until you are comfortable enough to apply it in real life.
It’s great to have access to a free demo account, but when should you trade with real money? Only you can answer this question but it might be a good idea to track the results of your demo account and set goals before taking the next step.
Creating a record with your trading history can be very useful as it allows you to get an overview of the results that you could have obtained if you had traded with real money. Due to the volatility of the markets, your results will never be exactly the same but you can get an idea of whether or not your trading plan works for you.
Of course, it will only work if you are honest about your trading results. If so, this can be very beneficial. Some of the best traders in the world have coaches to work out their mindset, so it might also be helpful to keep a journal of your emotional progress regarding how you feel after a winning or losing trade.
It’s a great way to show ourselves that we have the mental courage to start risking our own capital in the markets.
The day will come when you want to switch to a real trading account and try to make a profit in real market conditions. However, it is up to you to decide when that day will come. So the question we must ask ourselves is what should happen before making this transition?
➣ Some traders like to set goals. For example, reach a profit of 10% of the balance of your demo account, carry out 20 operations or even be profitable during three consecutive months of trading.
One of the advantages of starting with a demo trading account is that getting started can be relatively easy, as the platform, the charts and the trading plan you will use remain the same.
If you are already familiar with the trading platform, have practiced strategies and techniques with the demo account and feel ready to invest your money, you just have to follow these steps to open a real account:
Step 1
The request to open a real account is also made through the Trader’s Office, in the same way as the demo account.
Step 2
Complete the form to open your trading account. You have several boxes to fill in:
Step 3
The next step is to send the necessary documentation to open the real trading account. These documents can be attached in the “Documents” tab of the Trader’s Office.
Step 4
Deposit funds. In the Transactions tab you can fund the Forex account. Until the funds reach the account, it will not be activated and it will not be accessible.