The financial markets are more accessible than ever thanks to online brokers and the trading platforms they offer. You can trade foreign currency pairs, stocks, commodities, and other instruments using nothing but your phone, the right app, and a trading account.
There are also more opportunities to bank profits. Depending on your trading style and personal preferences, you can use a financial instrument that suits you best and invest your money the right way.
Don’t let the low barrier and easy access fool you. While you can open a trading account in a few minutes, learning the basics and understanding the instrument you use are still very important. The best way to practice trading is by using a demo account.
No Risk, Real Gain
As the name suggests, demo accounts are accounts that you can set up for different purposes. You can use it to test a trading platform, get familiar with the indicators available to you, or even test strategies and trading tactics.
On platforms like Zulu Trade, you can set up the demo account the way you like too. When opening a demo account for forex trading, for example, you can set your leverage and initial deposit to match that of you real account. This gives you a more realistic view and feel.
While there are no risks involved in using demo accounts to give trading a try, there are real benefits to be gained. For starters, what you see is the actual market, so you gain genuine experience and knowledge as you trade using demo accounts.
You also get real feel of the indicators and trading systems you will use in real trades. This means you can test strategies and even individual trades without risking any of your real money in the process. Learning from your mistakes doesn’t have to be expensive at all.
While you are practicing and learning more about the markets you want to enter, keep an eye out for contests. Brokers and trading service providers are competing for your business, and one of the ways they attract customers is by running contests using their demo accounts.
You can use your best strategies to maximise your profits during the contest period. Be the most profitable trader and you stand a chance of winning real cash prizes and other benefits.
The realistic nature of demo accounts brings another big advantage, and that advantage is comfort. Getting comfortable with your trading environment is important. You can only make cool and calculated decisions when you are comfortable.
The more you practice, the more you’ll get familiar with the tools and indicators available to you, and the more comfortable you will feel with the trading platform. You’ll start reacting quicker to market changes. You will even learn how to open and close transactions quickly while avoiding trading mistakes along the way.
Let’s not forget that demo accounts are free! You don’t have to spend a penny to use demo accounts to learn how to trade. The only thing to do now is open your own demo account and start practicing.