You can hone your skills in trading by opening demo Forex trading account at XTrade first. It is a sort of virtual training program where you trade freely in a risk free environment with no loss to your real money. The provider of demo account allows you trade in a real like environment of Forex and provide you a demo (virtual money) to trade. Practicing trading in a demo account helps you to get familiar with the trading format and develop some basic trading strategies. But however many demo accounts are provided by the broker to lure people to open a live trading account with him. Though there is no harm in using demo accounts, there are some advantages and disadvantages of using demo Forex trading accounts wth brokers like XTrade.
Advantages Of A Forex Trading Account
- Demo Forex trading account allows you is to understand how the Forex market functions and how buying and selling of currencies is done. You need very few formalities in opening a demo account and without spending any money you can open a demo account.
- Most of the demo accounts are based on real time Forex trading situations and you get a chance to get familiar with the controls and the constant fluctuations in the currency prices. Since there is virtual money involved, you don’t need to worry about the money losses.
- Demo account helps the new traders to set their foot in the Forex trading world and the new traders can take their time in developing strategies for their trading. In a live Forex trading environment it is not possible because from the very first day your focus will be on getting profits and avoid losing money which can’t allow you to trade freely like in demo account.
- You can get a good overview of the services XTrade offers.
- A demo Forex trading account allows you to trade with virtual money which has no tangible value and this allows you to trade carelessly. The new traders become careless because of no risk factor involved in actual terms here.
- Many demo accounts are allowed with certain limitations which restrict the demo traders in the normal course of trading. Some demo account providers take some fees to open a demo account with them.
Getting An Account With XTrade
Trying a to sign up with XTrade and make use of their demo Forex trading account is recommended for every new beginner who enter into the world of Forex. However those who are expert enough and do not want to waste their time in trying demo accounts may directly jump into the live trading field and open a live trading account.