How Using A Demo Account Hinders Your Trading Experience

Forex trading can be confusing in that, several tell you to practice on demo platforms, while others advise against it. Demo accounts are provided by brokers to simulate real-time trades and give the trader a thorough idea about how currency markets work. However, while this system is meant to provide assistance, it often works contrary to its purpose!

Several traders are starting to believe that live trading on a safer note is much better than demo trading. While these virtual platforms do provide you with the best of samples, they fail to replicate a real-time trade and the risks it carries.

Advantages of using a demo account:

Keep in mind that on a demo platform, you have limitless capital to trade with. You can essentially work with a million dollars of virtual currency. This can hinder your real-time trading mindset. However, a demo account does come with its own benefits.

• Novices can experience and learn Forex on risk-free grounds. Beginners seldom know the nuances of Forex; and a live trade will only force losses on them. Demo Trading Accounts help learn the basics of currency trading without being subjected to any risks.
• Professionals can make use of these accounts for testing strategies. Though many traders like to implement plans already existing, some traders go a step beyond and invest strategies on their own!
• Testing the broker quality can be done perfectly on a Demo Trading Account. You can gauge your broker's efficiency and see how dedicated he is to assisting you through trades, providing the necessary tips and how good the trading platform is!

How live accounts differ from demo platforms:

• Live trades enable emotion in you. On a demo platform, you have all the money you want and not a single risk to remind you of the many downfalls Forex has. When you trade in real-time, you feel the need to protect your capital from losses, and are powered by the confidence to win.
• Money management is something you learn best in a real trade. Here, few will have million dollars to risk; the normal trader will trade with an affordable sum. Unlike demoing, you can't go ham on these grounds! You will have to invest with care and ensure every loss is kept to a minimal.

Some traders might prefer demoing before going live, and that is definitely viable. So long as you don't get carried away by a demo platform's freedom, you can retain the good parts and ignore the bad. 

Get yourself an impeccably-developed trading platform, be it for live or demo trading, from WesternFX! We understand the complexities of Forex and realize how important brokerage is. Our professional Online Brokers In Indonesia will assist you through all your trades and ensure you learn just as well as you earn! Call us now and let's get started.