How to Create a Demo Account for Forex Trading

Now let us consider the possibility of opening an account through the trading terminal. Go to the menu "File" - "Open account" - choose the type of account - "New demo account". Filling in the fields offered to us does not matter, except that e-mail should be appropriate. And in other fields, you can enter any symbols.
After pressing the "Next" button, save the account data somewhere so you can find it easily once needed.

Terms and Limitations for Forex Demo Accounts

The demo account has certainly positive, strange as it may sound, and negative sides.
On the positive side, we would like to note that the demo account is free. You do not have to pay for access to the account or any subscription fee, as well as no restrictions on the number of positions. The broker will not ask you to pay the loss on the demo account. You can open a demo account for any amount, but it is better to open it with the amount you plan to trade with real money in the future.
 
But there are some small limitations. Most brokers provide a demo account for an unlimited period, but some companies limit the period of use. Also, if you have not traded on your demo account for some time (3-6 months), it will be archived or deleted.
 
Well, what can be negative in Forex demo accounts? Rather, the negative property is not in the demo account itself, but in the trader's interaction with it. Many traders, overtrade on demo accounts, that for them this is where trading itself "finishes". They just keep playing around on the demo account for all the rest of their "trading career" being unable to move to a real account. 

Are Demo Accounts Any Good?

 Trading on a demo account leaves quite controversial opinions: some people love the opportunity to study on a demo account, others dislike it... What is the reason? Can a demo account teach you something?
 
Not really: a demo account has its advantages, but it also has its pitfalls. 

Brokers, who offer newcomers to master the essentials of trading on a practice account, do it to help people interested in trading in the foreign exchange market. There is nothing wrong with this, as these accounts exist to increase the number of traders in the market, and in particular, to attract people to their trading platform.
 
One of the main misconceptions about working with a demo account is that you can study the Forex market and basic trading functions without risking a penny! However, this is not always a good thing.
 
When trading with "virtual" money, risk suddenly disappears: you don't risk anything and you still earn countless "virtual" money. This means that you may be more likely to make risky trades, which you know you should not and will not do in the real world. This can lead you into a false sense of security.
 
Let's say you open a very high-risk position in a demo account and you manage to make a profit, then you open another position with even more risk and your position is profitable again, after which you suddenly become confident and feel that you can start opening live positions.
 
The market suddenly becomes very attractive to you. And you begin to imagine that if you can make as much money on a demo account as it would be good if you started trading with real money. This is an example of a situation when you, without fully understanding Forex trading, begin to go further, open a real account in the currency market and deposit real money.
 
You are confident in your abilities and feel that you know what you are doing. You open risky positions with real money and lose it; suddenly your trading career on Forex ends and you sit and look at your huge losses. When you trade with real money, all the experience you have gained while trading with "virtual" money is lost.
 
Of course, if you are consistent and careful in your actions, you can avoid this and become a successful trader, but you must have self-control. Demo accounts are very useful, but only if you trade as if it were real money. Never open positions on a demo account that you would not open on your real account!
 
To help prevent this, some brokers are currently offering cent accounts with a $1 deposit. This is almost the same demo account but with a very small deposit, however, it is still your own money and you are likely to make real successful trades by calculating your risks.
 
It's the best option for some people. Our advice is this: during one or two weeks, use a free demo account that will help you to get acquainted with Forex trading, then open a real account and start with a very small deposit without instantly diving into the foreign exchange market. With patience, awareness, and discipline, you will succeed.