Demo account vs real account in forex trading, which one is better, whats the difference
19:10 2012.10.10
As you already know there is lot of debate about the real trading accounts and demo trading accounts. Any attempt to compare these two accounts brings more confusions, they are completely different, they are used for completely different purposes. Before comparing these accounts we need to be aware of what we discuss about and for what purpose we use trading accounts. Well enough for intrudction lets get to the point what I really mean. Lets find out disadvantages and advantages about those accounts.
If you are first time or beginner in forex trading and Trading Platform is first time you run it then go for DEMO forex trading account, not for REAL. You need to become familiar with platform, how to trade, how to navigate, basically understand how software / trading platform works. In such case, please write it down, only demo trading account should be used! So you probably got my point, demo trading accounts are for becoming familiar with trading platform itself.
Real forex account is for traders and beginner traders, you can still deposit low amount of money like 200 USD, 2000 USD for trading. And you can trade with lot sizes like 0.01, 0.03 - this way you will learn, you will have that feeling that you are really in the forex market, you will feel that you are really trading, you will get a feeling that hey... I am really in the forex market, this is real! Using small lots sizes you will be able to learn with real money - thats big difference comparing to demo account. With demo account you won't loose money, but remember demo account prices can differ with real trading account when executing orders!
Notes:
1) Demo accounts are not for learning trading, demo accounts are for learning how software works 2) Real trading accounts are for learning and trading 3) if you are totally beginner, use your trading account with low amount of lots
Recommendation: use demo account to understand how software works, use real trading account to learn forex trading.
P.S. If you do not know what lots are, search in buzzinforex education section and read articles about it! |
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