I am an experienced trader and I am always backtesting and creating new strategies. I think Demo accounts can be problematic, one does not get the real emotional connection that a trader has with his Capital on Demo.
James_Bond posted: What do you think? Nowadays, when you can open an account with as minimal as $1 deposit, does a demo account works for the best interest of the trader or not?
I will clarify; the point of a demo account is to get a feel of forex trading, however it creates the psychological illusion of not caring of any losses/wins and taking enormous risk without having to confront consequences (psychological side). Short term, a new forex trader won't need to deposit any funds to try trading, however longer term, he/she is most likely to lose his/her first deposit after trading a demo as those are 2 different trading environments.
So why not start with a real account in the first place? A demo account will just make a newbie trader over confident thus causing him to deposit more than what he/she would deposit for testing purposes in the first place. Therefore, I think a demo account is simply disastrous for new traders and is actually achieving the opposite of what it should.
Yes, demo accounts are very important for traders to gain experience before investing real money in the markets. They provide an opportunity to learn about trading strategies and instruments without incurring any risk.