Demo account the most shining invention to improve trading performance

Demo account is a revolutionary tool for any type of traders. All kinds of investment is risky, especially for novices. Before trading, they need to learn some tools and be familiar with the market and the mechanism involved in the transaction. As for experienced traders, they can apply new strategies and systems to trading by demo account. The demo account can help brokers open up the market.

So what are the differences between virtual trading and real trading？

1. The servers of the general platform are divided into: DEMO (virtual server) REAL (real server)

2. For some trading platforms, the spread of their demo account is different from the real ones. But most of platforms provide the same spread in both demo account and real account.

3. The data transmission of some demo accounts will be relatively slow, depending on the specific platform.

4. Under the conditions of large fluctuations or low liquidity, the virtual account cannot show the real market performance, such as slippage.

5. The biggest difference is that the funds in the demo account are virtual.

For novices, the demo account is undoubtedly a good place to help them become familiar with the trading platform and market environment and learn some skills.

This article will give you a general introduction of the demo account, including its functions and features. A foreign exchange demo account (Demo Account) is a type of trading account that usually “funds” traders with some simulated currencies to allow them to conduct virtual transactions and follow the ins and outs of the familiar platform. Because it is a demo account, there is no real profit or loss for traders.

The foreign exchange demo account provides traders with a risk-free trading environment. The profits and losses in the demo account will not be included in cost. Moreover, novices can learn the knowledge of foreign exchange transactions and understand the types of order, various functions of platform and the environment of trading market, as well as how to use leverage through the demo account and risk management.

For experienced traders, some innovative ideas and strategies can be tested through virtual trading, and they can adjust the performance of the strategy applied in the account to prepare for the trading in real market.

But it should be noticed that trading by demo account dose not completely reflect what happens in real market.

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