- Opening a Demo trading account with XM
- 3 Steps to open XM trading account in Demo
- Demo MT4 and MT5 trading accounts are for practice
- Can I open multiple XM MT4/MT5 Demo accounts? Any limitations?
- What you must know when trading in Demo accounts
- Access to XM’s Forex Educational Materials for free
In this article, you can find out how to register for XM Demo (virtual) trading account.
Opening a Demo trading account with XM
XM provides its traders free Demo trading accounts.
By opening a Demo trading account with XM, you can experience their trading environment without risking your own funds.
At XM, demo accounts do not have an expiry date, and so you can use them as long as you want.
3 Steps to open XM trading account in Demo
To open XM’s MT4 or MT5 Demo account, please follow the steps below.
- Signup and Register for XM online
You need to fill in some personal information. The online registration may take only a few minutes.
- Install MT4 or MT5 trading platform
The download links for XM’s MT4 and MT5 platforms can be found in XM Official Website.
- Login and Start trading risk-free
The virtual money is already there as you have chosen. Now start trading to practice and experience the trading condition of XM.
After opening an account with XM, you can also access to XM MT4 and MT5 platforms through their mobile apps.
The download links for the XM apps can be found in XM Official Website.
Demo MT4 and MT5 trading accounts are for practice
One of the most important things to do before starting to trade with your own money is to use a demo trading account – no doubt about it.
Because a demo account is the place where every new Forex trader learns how to deal with the ups and downs of Forex trading.
However, demo accounts don’t always offer the same market situations as real trading accounts in terms of trading conditions.
Things such as initial trading capital, slippage, re-quotes, latency time in execution, spreads and liquidity gaps aren’t factors in demo accounts.
So, how can a trader best transition from a demo account to a real account and deal with these challenges?
Can I open multiple XM MT4/MT5 Demo accounts? Any limitations?
Yes, you can do that.
There is no restrictions on the number of Demo accounts you can open.
Demo accounts will expire if the account is inactive for longer than 90 days.
You can use it longer as long as the account is active.
To open an account, please visit the XM’s official website and proceed to register online.
For the account comparison table, please visit the page here.
What you must know when trading in Demo accounts
1. You need first to understand what demo accounts are used for
XM’s Forex demo accounts offer FX traders the opportunity to learn more about the trading platform, as well as to get familiar with the different types of orders and trading conditions they offer.
They also help FX traders get a feel for trading and market dynamics to avoid basic and unnecessary trading mistakes that might trigger avoidable losses.
New traders should, however, be aware that demo trading is limited.
For instance, they can’t properly validate your trading system and its profitability, because you do not have the same trading conditions as a real account – there are different psychological factors at play because it’s not your money.
Even though making money on a live account should be as simple as it is on a demo account, it’s not uncommon to hear traders say their strategy that made money on their demo account, is now not making much money at all after transitioning to a real account.
2. The difference in performance is mostly due to technical and behavioural differences
Brokers often offer demo account balances that are way higher than what you would normally deposit.
These unrealistic balances affect your risk, money and position management.
And these large virtual sums encourage traders to make riskier trades than they should.
This is an unrealistic basis on which to start trading, and it can also become a habit that might be hard to break.
3. Changing market conditions
Market conditions also constantly change, which can be relatively hard to manage for new traders, such as ranging versus trending markets and volatile versus quiet markets.
Not to mention demo accounts simulate an ideal trading environment, which you’re not likely to find in the real world – especially regarding processed orders, with your positions being executed at the exact price and time specified.
For these reasons, performance in demo accounts tends to be better than in real accounts where you have to deal with supply/demand constraints, your psychological issues and information transfer limitations, as well as other technical issues that can pop up from time to time.
Trading financial markets on demo accounts are also psychologically different than with real accounts, which most traders underestimate, if not outright misjudge.
While the mechanics are the same, behavioural changes happen, and your emotions often take over your reason, technique, and trading strategy.
This is because, with a demo trading account, you are using virtual money, while if you’re trading a live account, you are using your own money.
And there is no doubt that fear of losing money is the single biggest factor that affects every trader.
4. How to seamlessly transition from demo to live account
First, you need to recognise and accept you will face losses because they are inevitable at some point and they are a part of your learning curve.
It’s also important to only risk the money you can afford to lose.
Start small and always continue to trade small.
Then, it’s vital to trade according to your investment strategy described in your trading plan, with a focus on risk management rules with small positions and a risk/reward ratio of 1:3.
This trading plan will help you be more consistent with your profits and reduce your emotional engagement while trading, as it’s important to protect your emotional capital too.
Even though you might think to move from a demo to a real account is an easy step, it’s usually a struggle that can lead to avoidable losses.
Always remember to
“plan your trade and trade your plan”
based on logic and reason, not emotions.
Access to XM’s Forex Educational Materials for free
It is quite easy to learn how to trade on Forex market – said on the websites of many broking companies.
Also it is confirmed by the experience of thousands of private traders worldwide.
However, there are many ways to learn Forex trading.
For example you can visit special seminars held by professional traders to learn their methodology of trading and their vision, their experience, and probably you will be missing the core part of success – the elaboration of your own unique vision and trading strategy that can suit you much better and that can be much more beneficial for you.
You can learn on your own, searching for the right information in the internet, separating the truth from the lie, and wasting a lot of your time.
Or you can use the information provided on the website – XM have collected for you all, that will help you learn the basics of professional trading and to improve your skills and abilities, thus avoiding the many mistakes that beginners frequently make on the market.
All information on XM’s official website was collected by experienced analysts and traders, therefore, all the information will be accurate and relevant.
Have you already been trading with XM?
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