Why MetaTrader 5 (MT5) Demo Trading Accounts Are The Best!May 15, 2021
Demo trading accounts in MetaTrader 5 (MT5) are great starting points for your trading career. This is especially true for first-time traders as this is the first step before actually opening a live trading account. Some of the most noteworthy things about demo accounts are its capability to operate in real-time, trading strategies can be developed and tested, trading habits can be built and developed, and finally, risk management techniques can be fully understood using a demo trading account.
Learning More About Demo Trading Accounts
A demo account acts as a simulated FX trading environment. It is very useful for newbies because it helps them become familiar with the trading environment and the process alongside it. In most demo accounts, you will be given a virtual balance that you can spend throughout the market, explore different concepts in the market, and experiment with your trading strategies before the actual battle starts.
With a demo account, you can freely trade commodities, indices, and forex in a totally safe environment, without the need to spend real money, meaning it is risk-free. You will also know more about analyzing the price charts, watching the movement of the market, filling a trade ticket, something that you only read on FX books and online forums.
Opening a Demo Account
Following a few, easy steps, you will be able to open a trading account. The first thing you have to do is to provide your basic information and an email will be sent to the email address that you have provided. Any other information is unnecessary unless you are ready to start trading in a live account.
Using the Trading Simulator Account
Nothing is different when using trading simulator accounts and live trading accounts. Simulator account is another term used for a demo account. It showcases the same live environment and can be used as an actual trading account.
If you are still building strategies to be used in your trading plan then demo accounts are the perfect way to do so. This way, you can check out the trading concepts without committing real money. If your strategies turn sour, then you don’t have to worry about losing anything. This makes demo accounts the perfect place to practice trading and familiarize the market.
FAQ About Demo Trading Accounts
Why do I need to open a demo account?
You have to open a demo account because it allows you to practice your strategies, grow your confidence, and hold a grip on your platform without losing money.
Can I withdraw the money I won in a demo account?
Unfortunately, since this is just for practice trading, you won’t be able to get the money from it as these are merely virtual.
Are these demo accounts, real trading accounts?
Demo accounts in MT5 are not real accounts used in Forex trading. However, the experience here is similar to that of a live trading account.
Can I transfer funds into a demo account?
You cannot withdraw funds from a demo account, likewise, you also cannot transfer funds in it.