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.
I would add that a demo account is good for estimating a trading idea's possibility, however it fails to measure: slippage, execution and real pricing (spreads) which can have an enormous impact on a trading system.
TheLastBear posted: I prefer PaxForex No Deposit Bonus. You get $200, and the money you make you may keep and it may be transferred to your real account. It makes much more sense to me and you don't waste your time.
Yes, I agree with you. No deposit bonus are good for newbies. I am too using one.
Demo Accounts are an absolutely necessity for new traders, when I opened my first one last year, I lost $5000 lol obviously I was still learning and still am actually, I hate to think how much I would have lost had I gone in feet first.
I have traded both a Live and Demo account. I feel like I managed to get a better grasp of my system through using a demo account. I understand that the feeds are not the same, however it helped me develop my ideas. I never thought of it as a quick money making scheme nor did I take huge risks with the demo account, I treated it as if it was real money which I believe is what most people do wrong.
I think demo accounts are great for having a proper learning experience and practice. A newbie can’t always handle the pressure of a live account and I see no harm with demos where they don’t have to worry about losing their money.
For me, demo accounts have proven to be a great medium to practice. They have helped me in getting to know about the trading conditions without any risk of actual money and I consider it one of the best sources of learning especially for beginners.
Yes, it’s more than just necessary. It's important. You tend to increase the risk of losses if you directly enter into the live markets. So invest some time in learning through a demo account and then after you’ve learned enough, shift to trading markets.
Demo account is not necessary but it can help you understand the trading market in a better way, that too without risking your money. In my initial days, I demo traded for 3 months just to be confident enough before going ahead with the live accounts. I learned almost everything from trading to spreads and how actually the indicators are used. These things help you in your future.
siochauland posted: Demo account is not necessary but it can help you understand the trading market in a better way, that too without risking your money. In my initial days, I demo traded for 3 months just to be confident enough before going ahead with the live accounts. I learned almost everything from trading to spreads and how actually the indicators are used. These things help you in your future.
I think it is very necessary to learn how to trade.
Newcomers need to use the demo platform. Basic knowledge can be gained in this. And if you are not interested in demo trading, which means you have no interest in profit/loss, then you can use a mini account.
Emotion will work even if it is a little bit. We have to strengthen this place.