Online trading demo account: Benefits for beginners and experienced traders
Online trading can be confusing, especially for beginners.
There are so many trading terms to learn. A wide range of markets and products to understand, and of course, you need to find a trading style that works for you.
That is why we offer a demo trading account to help you get started.
Who needs a demo account?
If you are a new trader, a demo account gives you unlimited virtual funds so that you can learn about our platforms and products without losing a dime of your own money.
Experienced traders also use demo accounts, either to test new products or to perfect their strategies before trading with real money.
What are the other benefits of using a demo account?
Besides helping you to find an effective trading style, practising with a demo account can also help you to master other aspects of trading, including:
- Risk management: Some people go into financial trading with a “get it all at once” mindset. After a few wins, they go all-in with their capital, hoping to make a fortune in one transaction. With a demo account, you will learn the importance of diversifying your portfolio.
- Market analysis: Studying market movements and the outcome of past trades are vital in online trading. Through practice trades, you will learn how to analyse market movements. The more you analyse the market, the more likely you will be to make smarter trading decisions.
- Planning: With a demo account, you will learn the importance of planning out your trades before opening positions. It will also allow you to discover the best time of the day to trade each market and the trading strategies to follow.
When is the right time to switch to a real account?
There is no definite answer to this question. But, here are a few pointers that might help you decide whether it is time to make a switch:
- Your trades are becoming profitable: Don’t look at one successful transaction with a profit higher than the loss of your last ten trades. But if over 50% of your transactions are winning trades, then it may be a sign that you are becoming a better trader. Also, ensure that your account balance is positive over a considerable period of time
- You have found a winning strategy: You may consider switching to a real account if you have defined the markets you want to trade and are confident about your approach.
- You have learnt how to manage your funds: Poor money management can affect even the most skilled traders. But knowing how to balance out your wins and losses can help you trade profitably. Once you have mastered this skill, you can start thinking of switching to a real money account.
- You have learnt to control your emotions: Managing your feelings is an important step to becoming a successful trader. You shouldn’t worry too much if some of your trades are unsuccessful. Also, don’t get too emotional over a win. Keeping your emotions in check will help you to make calculated decisions.
Ready to get started? Create a free demo account on Deriv.com. It takes less than a minute, and you get unlimited virtual funds to begin practising.
