Before engaging in online forex trading with your real money, it is advisable to test the waters by trading the demo. This will give you the opportunity to experience the operation of the platform you want to trade on. But what makes trading on a demo account different from real trading?
First and foremost, trading the demo comes with a lot more of peace of mind compared to real trading because you won't be afraid of losing your money. In addition, you will be in a better position to take risks that you wouldn't have taken if you are trading with your money. As a result of this, you will learn a lot of tricks that can be used to take full advantage of the market.
Furthermore, demo-trading gives you the opportunity to try different trading platforms in order to discover the one that is just right for you. Even though most platforms are almost the same, there is a uniqueness that is associated with each broker's platform. By trying different platforms, you will discover the uniqueness that characterizes each platform thereby giving you various options to choose from.
In addition, if you trading on a demo account, you can try out different leverages that are available on the trading platform. You should start with low leverage before moving up to the high leverage. By doing this, you will discover that high leverage brings in more pips/profits and at same time more loss while low leverage brings in less profit and loss. That is why it is advisable to start real trading with low leverage, especially if you are a newbie, in order to reduce the rate of loss if it occurs.
Real and demo trading platforms have the same features except that the money in a demo account is virtual money while the money in a real account is your real money. So, you are not going to experience something different; the charts, news feeds, spreads, etc., are the same in both instances. If the platform you will be trading on is a web-based platform that doesn't require downloading a trading software, then you are going to experience a convenient and thrilling moments in the market that is one of the most traded in the world. And if you have an android smart phone, you can use it to trade in today's forex trading world, which gives you the opportunity to place trades on the move.
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