Trading the Forex market is not as easy as trading some other financial instruments. It is because of volatility and the element of risk involved. Opening a demo account is the best gateway to the FX trading whether for a beginner or a professional trader. A Forex demo account offers significant benefits to traders seeking to earn better. You will be able to trade in real-time, risk-free environment and test your trading strategies with a demo account. A demo account can be opened at no cost. Trade orders on a Forex demo account are normally implemented without any problems. When you begin trading the live Forex accounts, you may find that your pending orders might not get filled.
A trader cannot be re-quoted in a demo account as it is a fully controlled environment whereas in a live market account re-quote is something that traders have to live with. In a demo trading environment, spreads are usually tighter. Unlike a real trading account, stop-loss order execution is always executed perfectly in a demo trading environment. The primary reason as to why the differences arise between demo and live accounts is because of data feed. A broker has to pay a certain amount of fees to access the live market quotes. A demo account is economic when compared to a live account.
Demo trading accounts offer a risk-free trading environment for traders. It is especially useful for beginners as it helps them to get familiar to markets. A demo account could also be used to trade various instruments and test the trading conditions offered by the broker. Traders, who are familiar with the demo trading condition, can move to trading in a real account. Traders can then opt for a micro or a FX cent A/c that can help them precisely evaluate the real-time trading conditions. A majority of brokers nowadays provide micro Forex trading accounts. Micro accounts are the next step for traders to test their potential FX broker before opening a standard trading account.