The types of accounts in the Forex market are divided into three types:
1. Real account, in which the individual subscribe to it with real capital.
2. Mini account, which is similar to the real account but with a capital smaller than the capital in the real account so it will be suitable for small capital owners.
3. Demo or default account, which a non-real account and the traders use it for training and learning practically.
What is the demo account?
Forex trading companies offer demo accounts which are default accounts so the trader can use them to trade currencies and interact in the market as if he is trading in real but without using real money. New traders should start with these accounts to learn the trading techniques.
Forex trading features through demo accounts:
- The trader is not exposed to a real loss of money.
- The trader discovers through the demo account his mistakes and learns from them.
- Enable the real trading with the real market.
- Gain experience from what he learns on the demo account practically.
- User can open free demo accounts.
- A valuable opportunity for all new traders who aspire to improve their ability to trade in Forex.
Through the demo account, the trader can:
Know the importance of risk management and the role of technical analysis and basic analysis in trading processes, and know how fast markets move, and how to deal with the constant fluctuations that occurs in the Forex market.
What is the appropriate period during which a user can learn trading on a demo account?
Anyone wants to enter the Forex market and learn how to trade in Forex should learn well and gain experience continuously. The new trader should learn practically through demo accounts in a period of time not less than 6 months until he has the right knowledge which make him he able to enter Forex trading field.
The idea is not only to register in a demo account for training and learning only, but you should register in a demo account even if you have sufficient trading experience because you can learn how to deal with any new brokerage firm you want to register a real account in it.
The best way to learn currency trading and Forex
You may be afraid at first but everything by practice and learning is easy, so if you are a beginner in the world of Forex and do not have any techniques, you can start and then become professional over time and this only requires Internet and a demo account in addition to reading a lot of books or get help from websites and the expertise of professional traders.
Trading through demo accounts is a golden opportunity to learn the trading basics and to experience the Forex trading safely as the trading with a demo account is risk-free because the money used is not real and the trader can access the Forex market to trade just as in the real markets and to experience commercial strategies and test their success, as well as user will know various trading applications.
What are the differences between real and demo accounts?
The money in the demo account is fake money, unlike the real accounts where real money is used, so there is no risk in the demo account.
The demo account has a specified time period while the real account has no time limit to close it.
The demo account does not need to be opened to official documents while the real account needs official documents.