- Open Exness’s Demo Account for practice
- What is Demo Forex Account?
- Analyze your trading strategy with risk-free
- 4 Merits of using Exness’s Demo account
- 2 disadvantages of using a demo account
- Tips of Demo Account Trading
Open Exness’s Demo Account for practice
For those who are thinking of starting FX, or who are just starting FX and want to improve, the most important thing is practice.
There are various ways to practice FX, but demo trading is recommended because of its high efficiency and high effectiveness.
The most scary thing about FX isn’t about increasing your precious money but reducing it.
Demo trade allows you to practice FX without risking your valuable money.
With Exness, you can open a Demo trading account for free, with virtual money in it.
With Exness’s Demo trading account, you can practice Forex and CFD trading without risking your own funds as the account involves only the virtual money, but gives you the same trading tools and conditions as the real account.
Do you want to see the trading condition of Exness or practice trading Forex without risking your own funds?
Open EXNESS’s Demo trading account and start practicing today.
What is Demo Forex Account?
Demo trading is a service that allows you to experience FX trading using virtually the same screen as a real trading environment using virtual funds.
Demo trade is provided by the Exness as part of the service, so it can be used free of charge.
For example, you can make a forex trade using a virtual fund of 10,000 USD, and experience what the result will be.
The great thing about demo trading is that it’s just virtual money, so even if you fail to trade, the only thing that decreases is virtual money, and you can practice without using actual money.
It is extremely significant to be able to improve FX trading technique in an environment where the biggest risk of investment is the possibility of losing money.
We will explain the advantages of demo trading in detail later.
Analyze your trading strategy with risk-free
Practice is indispensable for improving FX trading technique.
Practice is literally to verify why the price movements and results have been so far and why, and to use them to improve trading technique.
However, since actual FX trading uses money, strategy verification when losing money is not free.
Since past price movements are information that anyone can know, using that information, you can learn from past price movements such as “how does this move at this time?” and “how to analyze the correct answer at such times”.
In the FX world, there is also strategy verification software specialized for such work.
Demo trading is suitable for practice, and it is a task of refining trading decision technique using real-time charts and fundamentals (factors such as political economy)
4 Merits of using Exness’s Demo account
There are 4 main advantages to using a demo account of Exness.
Each is very important, and all are essential for success as a FX trader in the future.
1. You can trade Forex without any money
The biggest advantage of demo trading, which we mentioned a little bit earlier, is that you can trade without spending money.
Practice is indispensable for improving FX trading technique, and demo trading can be done for free.
2. You can trade real rates in real time
The important thing in the practice of FX is how to prepare an environment close to a real battle.
Studying FX with books is also effective, but the big difference between books and demo trading is that you can experience real rate fluctuations.
The demo trading service provided by Exness is a free version of the same screen as a real account that actually trades using money, so of course the rate fluctuation is also real.
There is also a feeling that you can get it intuitively by seeing the actual rate fluctuation and experiencing it with demo trading.
For example, the fact that the US dollar has a strong correlation with the stock price, and that the currency pair of the resource-rich countries, the Canadian dollar and the Mexican peso , have a strong correlation with the crude oil price, is most experienced through actual trading.
This is because you can use real rate fluctuations in demo trades.
3. You can experience the trading condition for free
For FX traders, the accounts and trading tools offered by FX companies are important.
It is not the better that it has more functions and the number of currency pairs that it offers, but it is important that the trading platform is easy to use and has the most suitable functions for the trader’s trading style.
Since FX companies are fully aware of this, each company’s account has its own characteristics.
Exness is also the same and offers various account types and platforms for traders.
Visit the page here to see the list and comparison of Exness’s all trading account types.
For those who have never opened an FX account, the accounts of any company may look the same, but when you actually use each account, you will find that the usability and certain areas are quite different.
For example, the technical analysis.
Since the technical analysis has large individual differences depending on the preference of each trader and the trading style that they are good at, it is necessary to select an account depending on which indicator is implemented.
Also, even if the same indicator is used, the usability may be different, so there are many things that you will not understand unless you actually use it.
If it is a demo account, the environment that is almost the same as the actual trading environment is prepared, so it will be useful when making a decision when choosing the account you want to open or the account you should open.
Intermediate and advanced users may also use the demo account to find a more suitable account.
4. Prevent incorrect orders with real funds in the future
By firmly learning how to use trading software in demo trading, you can take measures against the risk that you will make a mistake and lose money when you become a trader of a live account.
Although it is unavoidable that the money will be reduced by making a mistake in the judgment of the market price, it is wasteful to lose the money by pressing a simple incorrect button, so let’s become familiar with the operation with the demo account first.
2 disadvantages of using a demo account
Next, let’s see the disadvantages of using a demo account of an FX broker.
1. Demo and Live have different feelings
In the demo trade, no matter how much you lose, it is a virtual fund, so as already mentioned the biggest advantage is no cost or risk.
And this merit may affect the human psychology and become a demerit.
In short, practice with demo trading does not always yield the same results with real trading.
The psychology of the person who wants to start forex is based on the desire to increase money.
Therefore, it is good to practice demo trade, but demo trade is a virtual fund, so there is no fear of losing.
Real trade is a different world, and the losses you make there are real.
In the case of demo trading, even if unrealized profits were generated, it might have been possible to take profit by waiting for the target rate, but when it became a real trade, you fear that you may end up with a larger loss.
This kind of investor sentiment is not uncommon
You may not have been aware of it because there is no fear of losing money in demo trading, but please keep in mind that the risk due to this prospect theory may become real in real trading.
Considering this, it is good to practice thoroughly in demo trading only after the firm trading rules have been established.
If the demo trading is done in a state where the rules are not fixed as a method, the improvement of trading technique is limited.
2. Demo trading account has expiration date
The big difference between a demo account and a real account is the expiration date.
Originally, a demo account is like a free sample for a Forex broker, so the purpose is to have a real account open after a simulated trade.
Therefore, the expiration date is set, but for those who want to use this demo account for practice, trading can not be done during the practice, even if the demo account is opened again, the previous transaction history will be initialized
There is a difficult part in the medium- to long-term trading experience in case of demo accounts.
Therefore, it is not suitable for those who are thinking of trading that accumulates swap points and trading from a medium- to long-term perspective.
Tips of Demo Account Trading
After understanding the merits and demerits of demo trading, here are three points to consider in order to make use of the demo account in actual trading.
What is important is how to create an environment/situation that is close to actual trading.
1. Trade with the actual volume you will in real trade
When you open a demo account, virtual funds of hundreds of thousands of dollars will be prepared.
Since it is a virtual fund, it is okay to make a bold trade, but it is not practical because it can not (and should not) do the same when trading in the live account.
It is not recommended for Forex beginners to use a large amount of virtual funds, such as virtual funds, to be deposited in the demo account from the beginning to trade.
Since it is common to start with 1,000 currencies at the beginning, it is important to make a more realistic strategy by investing the same amount you would in demo trading.
Even if you have a large amount of virtual fund in the demo account, if you want to start from 1,000 USD when you actually start the real trade, you can do the demo trade in that size even in the demo account.
If you reflect this sense of scale in demo trading and pay attention to the same trading volume, it will be easier to grasp the image of profits and losses that occur during real trading.
2. Understand how to use analytical indicators
What makes forex trading different from gambling is that you can make trading decisions based on technical and fundamentals analysis, but not on luck.
Therefore, it is important to master the usage of analytical indicators to improve FX trading technique, but demo trading can do that for free.
Even if it is a demo trade, you should not play around and not analyzing the markets such as how the economic indicators released from each country affect the rate, what kind of shape the chart will move the rate.
Let’s trade using the analysis tools and improve the technique while being aware of the result.
3. Understand how to place orders
One of the characteristics of FX is the variety of ordering methods.
There are so many types of market orders, limit orders, stop orders, IFDs, OCOs, IFOs, trailing stops etc.
Exness has no restrictions on trading strategies thus you can take advantage of any order types to efficiently carry out your trading.
Most Forex companies implement the same ordering method as the real account in the demo account, so please consider using a variety of ordering methods as a practice.
The most popular ordering method is market order where the rate at the time of ordering is applied.
Moreover, there are so many different phases in the market that, for example, the rate that used to go back and forth within the same range (price range) may move out of that range (range break).
In this case, it is not possible to deal with it only with the market order, so it is necessary to use techniques that utilize various ordering methods such as new orders by stop orders.
Since it is essential for technological improvement to complete orders at the timing and rate you want to order, please try various ordering methods in demo trading and master it.