by Paul Petersen | July 30, 2019 9:42 am
Demo account is often regarded as the best starting account for beginners, which is true for the most parts since it is specifically created with ideal trading environment. Most beginners seem to have huge success trading with the demo account, but rarely so with the other types of accounts such as Standard accounts and ECN accounts because of the large differences between these types of accounts. For a more detailed steps that you should take as a beginner, please take a look at our recommended learning stages for new forex traders below:
Note: Cent/Micro account sometimes is the better alternative for demo accounts.
CURRENT TOP 4 BEST FOREX DEMO ACCOUNT
For beginners, I suggest that you should choose the standard demo account to start your trading career with. By that way, you can learn the basics of the forex market without having to lose your money, and it’s my advice to you that only when you’re confident with your trading skills should you move on to another account type. Fact is, most people who make the transition to the standard account type too early, without having learned the forex market thoroughly, end up losing money most of the times and quit forex trading after that, simply because the demo trading environment and the real trading environment differences are quite literally day and night.
Why is ECN demo account advised against?
ECN demo account, as I’ve investigated, is far more different than the usual ECN account. It has different, more stable quotes to make the new traders feel more comfortable and safer, but it is actually more harmful than good in the long run. The reason for this long-term danger is because when trading with the ECN demo account, the new traders will feel overconfident as they can win the majority of the time, mostly only because the brokers allow them to. Once they move from the ECN demo account to regular account or even ECN account, the differences will be tremendous and most of the new traders couldn’t keep up with the changes in trading conditions, which then lead to even more money losses.
Standard demo account is the regular trading account with standard trading conditions such as standard lot size, transaction cost, spread and leverage. Comparing to ECN account, standard account is more preferred for regular trading needs because it’s safer, more stable and just overall more suitable for the majority of traders. ECN accounts might be better for the experts, but the majority of traders aren’t that good with trading just yet, that’s why standard demo account is more preferred.
See the best forex brokers for beginners.
Forex demo account is, in fact, vastly different than the real account types. More details are as follow:
Forex demo account is easy and should be suitable for all kinds of traders. However, as for my professional opinion, I’m more leaning toward the option of practicing using the Micro/Cent account as it’s more practical this way. The best part about Micro/Cent account is that you only need to invest as much as $10 to be able to practice for 2 – 3 months with Micro/Cent account, and Micro/Cent account actually use the real trading conditions, with real quotes and everything.
There’s no way to tell for sure as the learning capacity of each individual is different. However, the usual learning time is between 3 days to a week to learn all the basics of the forex market. After that, I suggest you move on to the regular account if you’re confident, or practice again using the Micro/Cent account.
CURRENT TOP 4 BEST FOREX DEMO ACCOUNT
This article is brought to you by Mr. Bruce Kovner, a collaborator with Brokersguru. Brokersguru is a forex review website from Bangkok, Thailand. Just like its name, it is truly a guru when it comes to forex brokers. It shows readers who is good, who is bad, who is reliable and who is not.
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