Demo account allows you to test your strategies with virtual money before trading with real funds on your Live account.
A virtual demo account is ideal for getting acquainted with the Forex market. This type of account does not require you to deposit funds, but the profit received as a result of trading cannot be withdrawn. The working conditions on demo accounts do not differ from real trading on Forex: the technique of making transactions, the procedure for requesting quotes, and the parameters for maintaining an open position are the same.
A demo account is used in three main cases:
- If you are a novice trader and want to learn the basics of trading on financial markets without the risk of losing your own funds.
- When you want to check the trading conditions provided by the broker before opening a real account.
- If necessary, test an advisor or a new trading strategy.