Demo Trading Account: Learn Trading Without Risk

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Published: July 22nd, 2020 by Andrew

Demo trading account is one of the very first Google research made by beginner traders. After all, online trading at first seems difficult and risky, it is normal for beginners to look for a way to start trading without risk.

Who starts from scratch has a good point: the online trading demo can be a really smart way to learn online trading without risk. This article explains what is the best way to learn trading using demos (even if demos alone are not enough). Here you can find also the review of some of the best demos ever, such as ForexTB, eToro or Iq Option.

Learn trading online with Demo

The key point to start with, is how to learn online trading. Trading is a short-term investment activity that can generate high potential profits.

How do you learn online trading? First of all, you need to have a clear idea of the meaning of trading and how high profits can be generated. For this reason it is often recommended to always start by studying a good guide.

One of the best guides to learn trading is the one given by ForexTB broker: it is a completely free guide, which has already had hundreds of thousands of downloads in the last year.

This guide really works, i.e. it really explains in detail how you can make money from trading.

Unlike other guides, this is indeed a practical course. The other guides, which are often paid, waste a lot of time with theory and contain almost no practical indication.

The ForexTB trading book is also highly appreciated because it is simple to read and does not contain incomprehensible technical terms. You can download the course by clicking here.

It is no coincidence that many beginner traders consider the ForexTB course the best ever: the fact that it is free is an important element, since there are courses that cost even 7.000 euros and their educational value is lower than the free ForexTB one.

But even studying the best trading course, you can not improve without practice: online trading is learned above all by practicing.

Online trading demos solve this problem: they allow you to experiment without any kind of risk.

What is Demo Trading?

Demo is a simulation. A good demo must be an extremely realistic simulation, otherwise it is useless.

In practice, the only difference between demo mode and real mode must be the fact that the first one uses virtual money. For the rest, there must be no differences: same prices, same mechanisms, etc…

Not all demos are created equal: there are simulation applications of online trading which are practically games and therefore are useless.

Where to open Demo trading account

The right way to start trading online in demo mode is to use the platforms available on the best online brokers. We chose only 100% free demos, without restrictions and without limits.

Furthermore, we chose only brokers that offer really affordable conditions for beginners so that you can easily start trading online with real money.

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Demo trading with ForexTB

The first demo platform we would like to talk is ForexTB. In our opinion, it is one of the best online trading demos available today and it is also one of the best brokers ever.

ForexTB offers a free, unlimited and unconstrained demo, perfect for those who want to learn trading. ForexTB has a truly simple and intuitive platform, those who start have the opportunity to be guided through phone support by a real expert who provides all the necessary information to achieve success quickly.

For those who decide to trade with real money on the financial markets, ForexTB offers really convenient conditions: zero commissions, zero costs and very low spreads. The minimum deposit is just 250€.

It is no coincidence that ForexTB is one of the preferred choices for those who start trading on the financial markets for the first time.

You can get the free demo of ForexTB by clicking here.

Read also our full review on ForexTB

Demo Trading with eToro

The eToro platform is an exceptional option for those who want to learn online trading and want to experiment with demo mode.

eToro offers an intuitive trading platform that is also suitable for beginners, the demo is free, unlimited and without restrictions.

In addition, eToro is highly appreciated for its Copytrading tool: with an internal search engine it is very easy to find the best traders who made a lot of money in the past and you can copy them automatically with a simple click.

In other words, with eToro, it is possible to replicate in real time all the operation that the best traders in the world make.

Many beginner traders use eToro because you can start making profits immediately, in addition, you can learn by observing what the best do live.

In the case of eToro the demo is also useful to verify that Copytrading actually works.

You can get the free eToro demo by clicking here.

Read also our full review on eToro

Demo Trading with Iq Option

Iq Option is one of the brokers with the simplest and most intuitive interface ever. It offers an exceptional demo for free, absolutely unlimited and without restrictions, perfect for all those who really want to learn online trading.

There are also hundreds of video courses available to members that explain online trading in detail, starting from the basics, up to the most complex and profitable trading strategies.

For those who decide to operate with real money, Iq Option does not charge commissions nor any type of cost. You can start with a minimum deposit of just 10 euros. This explains why so many beginners start trading with Iq Option!

You can get the free demo of Iq Option by clicking here.

Read also our full review on Iq Option

How to use demo trading account properly

You opened a free demo account with a big broker like the ones presented, now what? Now is the time to take full advantage of the demo account you opened, even beginners can start to improve their performance quickly.

So, let’s go discover the best practices for those who open a demo account, here are the tips for you.

Why fundamental analysis is important

On the demo account you can learn to do fundamental analysis. This particular type of analysis examines all those elements that can change the price trend of an asset on the markets, in companies, and in currencies in the Forex market.

As with most analyzes, the goal is to derive useful data to make forecasts on the markets that must be as precise and accurate as possible. In particulate, the fundamental analysis is useful to derive macroeconomic data (also called market mover). Those data are released with news that have a very strong influence on the performance of the markets.

With this analysis you can anticipate the market almost always and with good precision, but to learn how to do it and to learn how to apply it, you must first try its potential on a demo account, where you can see how to set up a trade with the fundamental analysis to make it successful.

The secrets of Technical Analysis

The other only possible way to increase the chances of success in investments is to learn how to do technical analysis. This type of analysis is not impossible to carry out, even a beginner can easily do it.

With technical analysis you can become able to make very precise forecast that allow you to identify the most suitable moment to enter the market. There are at least twenty different technical indicators, but you must not consider it impossible for you to learn how to use them.

Here is the list of indicators that you can learn to use on the demo account of a broker like ForexTB:

  • Price algorithms are those that combine information deriving from the basic concepts of the various candles, i.e. maximum, minimum, opening and closing. This category includes RSI, CCI, MACD and ROC.
  • Volume indicators/oscillators process information, deriving from the number of contracts traded for a certain asset, differently. The On Balance Volume is part of these instruments.
  • Then we have another category: the algorithms of amplitude, which take into consideration another variable besides price and volume, that is, the amplitude of the market. This term refers to the degree and quality of participation in stocks in market movements. The famous A/D Line belongs to this category.
  • The latest classification, the hybrids, includes the rest of the algorithms that consider other elements that do not fall into the three divisions described above, such as the Bollinger Bands and volatility.

With the demo account, therefore, you have at your disposal the perfect tool to practice technical indicators. If you learn the basics of technical analysis, this can bring you enormous benefits and quickly get you out of the beginner category to immediately enter the smallest circle of those who trade with knowledge.

Learn mental management

What far too many investors tend to underestimate is the importance of the psychological management of online trading.

Financial operators who are successful, however, have reached certain objectives precisely because they have not ignored the power that their mind has over them and their ability to make wise decisions in trading, in all the different market situations.

With the demo account offered by brokers, you can also start taking care of the mental aspect of the investment activity. You can really understand what it feels like to use a trading platform with money, even virtual.

Those who feel insecure and uncertain do not go far in trading. In particular, we must learn to close market transactions quickly, in cold blood, as soon as they end up at a loss!

Learn to manage trading investment capital

Another decisive quality that can be learned thanks to demo account is the ability to manage the investment capital. This aspect is really underestimated, especially by those who are beginners and do not know how to defer the money available to maximum possible.

Managing capital is the very essence of trading, doing it in the best way requires good organizational skills and compliance with some fundamental rules, such as these two:

  • Never invest more than 5% in a single operation
  • Never lore more than 30% of your capital in one day

Your trading must be planned in detail, nothing should be left to chance.

Thanks to the leverage and the returns of the binary options, you will not have to worry about the proportion of your earnings, but only to avoid the long lasting losses.

You have to concentrate only on these elements and learn to dominate them at the best, thanks to the demo account offered by the best Forex brokers and binary options, from then on, you will be sure that the financial markets will guarantee you only great satisfaction.

Demo trading simulations

It is essential, more than anything else, to do simulated market operations on the demo. The advice is to spend several hours making investments with the “fake” capital that is allocated to the trader by the broker. As we have mentioned, these sums can range from € 1000 to € 100.000 (of virtual money).

Now, let’s give some indications that help you to do simulations. On the platform of any of the brokers recommended here, just open a free account to immediately access your demo mode. Once here, starting to experiment is very simple:

  • Select an asset from indices, stocks, forex, cryptocurrencies, commodities and much more.
  • Once the asset has been chosen, it is necessary to view its graph and understand what the current market trend is.
  • The third step is to identify the market trend: does it go up or down? Once you understand this, it will be much easier to understand whether to buy or sell.
  • Now begins the phase of market analysis with technical indicators, these indicators generate the trading signals to follow: up or down.
  • Finally, we must open the market position: we must choose whether to buy or sell and remember that, with the online trading platforms that operate with CFD, you can make profits both when the market goes up and when it goes down.

This is also an opportunity to learn how to set “Stop Loss” and “Take Profit”.

Conclusions

Starting trading online with a good demo is a winning idea that can lead to very good results. It is really important to choose a demo that is functional, free and a good simulation of online trading.

In any case, those who really want to learn online trading must always keep in mind that it takes both theory and practice: it is therefore important to study (a good starting point is the free guide of ForexTB) and apply the concepts studied with a good demo.

Once you have achieved good results, you can start experimenting with real money, even with small sums: with a broker like Iq Option, you can start operating with real money with a really small initial investment, just 10 euros.

We can say that, thanks to the demos and the low minimum deposit necessary to start, online trading is truly within everyone’s reach!

Are Demo Accounts free?

Yes, all the best platforms make this opportunity available at no cost. Be wary of those who ask for a payment to access a Demo.

Are the prices in the Demo version the same as the real account?

Yes, the Demo version is, in all respects, similar to the real account. The only difference is money, in demo mode are obviously virtual.

Do Demo accounts have limitations?

Some platforms offer the 30-day demo. Others, such as eToro, make it available for an unlimited period.

Are there any restrictions on the use of the Demo?

No, today there are no platform that binds the use of the Demo in any way. You can therefore freely stop operating without problems.

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