Forex trading can be a rewarding opportunity found scarcely in one’s lifetime but it comes with a risk to be equally nightmarish if investors do not remain careful. Typical forex trading experience requires one to choose a capable forex broker that is sure to handle investors’ funds and trading decisions efficiently and profit through spreads instead of a complex web-like structure including commissions and fees. Once you find a broker that you can trust, you could simply begin practicing the concept of virtual forex trading India. To experience virtual trading, the most common method is demo forex trading India which we will discuss in this article.
What are the Steps to Open a Demo Account?
If you have already picked a forex broker of your choice then to experience their virtual trading facilities, there must be a demo account available for new users. Demo accounts are usually preferred by those who want to check the functionalities and benefits of using any particular forex broker before trading forex live using real money. Though demo forex trading might seem like an artificial setup made only for illustrative purposes but it is critical for gaining first-hand experience of forex trading without actually risking your hard-earned capital.
Below are a few typical steps that a trader needs to go through to open a demo account:
Step 1: Find the Most Transparent Demo Trading Account
To millions of potential forex trader’s delight, every other online forex brokerage company provides a demo account these days. This confused newcomers in forex about picking which broker to opt for a risk-free and convenient virtual trading experience. As currency trading demands patience, good judgement, dedication, and deep research, so does demo forex trading. One goes to great lengths to find a reliable broker with transparent terms and conditions regarding their demo account.
Step 2: Submit Personal Information and Verify Demo Account
Once you have chosen a suitable forex broker offering a demo account to new users, you can go ahead and click on the “Open Demo Account” instead of creating a “Live Trading” account that involves real risk and real money.
Figure 1: IG’s Demo Account
Upon clicking on a demo account, the user would be asked to fill and submit an online application including information like
- Country of origin
- Full Name
- Phone
- E-mail address
By submitting this application, the user confirms their consent to provide the broker with the required permission to open a demo account.
Step 3: Verify Your E-Mail Address and Attempt of Opening Demo Account (Optional)
In the case of some forex brokers, another step is involved while opening a demo account which verifies the user’s e-mail address. Right after applying for demo account opening, the user is sent an automated no-reply e-mail to the address which they provided in the previous step. Most of the time, such a mail contains a link that redirects a user to their newly-created demo account through a safe passage.
Characteristics of an Ideal Demo Forex Account
The benefits of using a demo forex account are countless as mentioned earlier but finding one that serves as the ideal virtual trading forex account is tough. To make people’s search easier, we have described in detail some of the chosen characteristics that one can find only in an ideal and functionally complete demo account.
- Unlimited resources to use
Many forex brokers offer a demo account but not every of these provides the user with unlimited useful resources. These “pretend” forex accounts are useless if it has a certain limit to its usage which is why only top-tier FX brokers load their virtual forex trading environment with unlimited virtual funds for practising trading strategies in a risk-free zone. Demo account trades are also safe from slippage and dynamic price movements. Unlike live trading, trades do not close due to insufficient funds.
- Simulation of the real market, not a fake one
Only an ideal demo account can be used to its full extent without feeling like the trader is in fact in a virtual environment which is nothing but a proper simulation of the real deal. Traders are allowed to implement trading strategies and even modify them however they want before recording its results at the end of each closure of trading position. Professionally developed and seamless demo forex trading experience is one of the most prominent features of an ideal demo account.
- Easy to apply for
As mentioned before, a demo account is quite easy to apply for and then utilize to make the most out of the virtual trading experience in the case of forex. Just 3 simple steps should be enough to open a demo account with some of the best forex brokers available online. The procedure is certainly not as complicated and time-consuming as opening live trading with the same broker. Users do not have to reveal any sensitive personal data for a demo account.
- Essentially free of cost
A typical free demo account is supposed to be 100% free for usage by any new user of the forex broker. The central idea behind a demo account is to avoid risking real money for trading forex in a virtual trading environment using all of the features tools and platforms provided by a trustworthy broker.
- Same features as a Live Account
An ideal demo account allowing forex trading under a simulation is useless it mimics the same features of a broker’s live trading account. Experience of a demo account should be created in such a way that it gives an insight into the broker’s original trading platform, tools, strategies, spreads, leverages, and other additional functionalities. That way, every user who has a demo account could be tempted to try the live trading account and seriously consider becoming a client.
List of top brokers with a high-quality demo forex trading account
IG
This renowned company is usually the first choice of both new and experienced traders because of its proper regulatory compliance, competitive spreads, news research, and educational content. IG offers its user base a wide variety of trading platforms to choose from and begin trading risk-free with their demo account.
Demo Account Features:
- IG’s web platform, as well as a mobile trading app, is available to users through a demo account.
- Trades executed via the IG demo account are safe from slippage and other market risks.
- Users having a demo account can use IG’s Chart Packages for free.
Open a free practice trading account on IG Markets.
CMC Markets
Recognized as one of the giants in forex markets, CMC Markets has put extra care in making their platform inviting for beginners. This low-risk broker has a high trust score due to its faultless performance history. It is authorized by several regulators making it a safe place to trade forex with a demo account.
Demo Account Features:
- For as long as CMC Markets has been functional, it has offered a no-cost demo account with virtual funds.
- CMC Markets’ entire trading platform is available via a demo account in a risk-free environment without an expiration date.
- Their demo account comes with 30-days access to global equity markets.
Open a free practice trading account on CMC Markets.
FP Markets
Authorized by the Australian regulatory agency known as ASIC, FP Markets has an excellent and long track record. Its CFD-based offerings attract millions of professional traders interested in high-risk trading. Through its demo account, one can learn, practice, and learn leveraged trading.
Demo Account Features:
- Anyone can open a demo account and start trading within minutes.
- This type of account offers access to more than 10,000 financial instruments.
- Many free tools including technical indicators and charts are available via the FP Markets demo account.