Forex Demo vs Live Trading Account

A Forex demo account allows you to practice and test different Forex trading strategies with virtual money without risking your own money and helps you find the reliability of the Forex broker with ease. However, demo accounts lack the emotional commitment of real trading, making them less useful than real trading accounts.

The following are some potential differences observed between live Forex trading and demo account trading:

• Demo trading may create an unrealistically positive trading environment that cannot be found in live trading when a traders account funds are at stake.

• Demo trading does not have any real consequences for traders who fail to follow their trading plan. Therefore, traders might develop bad discipline-related habits that cost them money when they trade live.

• When trading in a demo account, traders might be tempted to overtrade or underestimate risk. When they switch to live Forex trading, this behavior can have serious negative consequences.

Overall, demo accounts can offer novice traders the opportunity to learn forex trading without any risk. Trading them for long periods of time leads nowhere in terms of profits. Trading in a live account is the only way to make substantial profits.

How Long Should You Demo Trade Forex？

Answers to this question vary from person to person. According to experts say, it usually takes approximately one or two months for beginners to become proficient with trading platforms before they begin to trade actively. However, you can take as much time as you need until you feel ready.

The problem is, in most cases, traders spend too much or too little time on demo accounts because they are unsure when to switch to a live account. While practicing in a free demo account is great, it wont bring you any real-life profits. In order to turn your practice and knowledge into actual profits, you must open a live Forex trading account.

As you work your way through the learning process, the day will come when you are ready to move forward with live Forex trading. However, you will be the one to decide when that day arrives. The decision of when to move on from a demo to live Forex trading can be challenging if youre a novice trader. Make sure you go through this checklist carefully before investing your life savings in the volatile Forex market.

How to Switch from Demo to a Live Forex Trading Easily？

Having now learned what to do and expect in demo trading, you can now transition smoothly from demo to live Forex trading by following these tips:

1) Make a small deposit, to begin with:

The first (few) trading accounts you open are likely to suffer losses, so make sure you trade with money you can afford to lose. However, you need to be sure that the money you are losing is worth it. As a result, you know the causes of your losses and how to stop them. You will stay in this loop for a very long time if you lose money without learning your lessons.

2) Start with a Micro or a Cent account:

The best part about switching from demo to live Forex trading is that you dont have to wait until you become an expert in Forex to get started in live trading. Even as a beginner, there are many ways to start trading Forex without losing much of your investment capital. A good example is the Forex Cent account.

Opening a cent account could be a good choice for novice traders who are interested in learning more about forex trading and experiencing the real market without risking significant funds. To put it simply, a Forex cent account enables you to trade with smaller transaction sizes than regular accounts since it is measured in cents. That is, 1 USD = 100 cents. With this, anyone can enter the forex market and begin trading with very little capital since the minimum lot size is 0.01 lot.

A cent account is perfect for testing and developing forex trading strategies. Low-risk trading allows you to experiment with different trading strategies while sharpening your skills and gaining experience at the same time. You will, however, only be able to achieve smaller gains with smaller capital. Forex cent accounts aren‘t the best option if you’re trying to gain larger profits. As you gain experience, you can then move to a standard forex account and take advantage of the Forex bonus offers offered by the broker.

3) Dont just focus on the money:

It is important to focus on the right things when you are just starting out with live Forex trading. Developing discipline, trusting your rules and your system, building a trading routine, and developing a passion for trading should be your top priorities.

Take time to understand your motives, try not to set yourself unrealistic expectations, and avoid over-critiquing yourself. Take your time and enjoy the process. With a conservative money management approach, you can lay a solid foundation at the beginning, which you can then leverage in the future.

4) Be open to Change and Adapt:

Forex markets are known for their fluctuating and ever-changing nature. It means that even top traders most successful plans must be constantly updated and adapted.

Staying flexible and adaptable will help you keep up with market changes and remain profitable no matter what the market conditions are. Develop a successful trading mindset that can help you avoid losing money and stay on track to success.

Benefits of choosing AximTrade as your trading platform

Trading Forex for the first time and feeling overwhelmed？ Don‘t worry! We’ve got you covered! AximTrade also allows you to trade like a professional from day one of your live Forex trades using our exclusive CopyTrade platform.

You can execute different market orders within seconds, and choose from more than 49 currency pairs and multiple indicators. AximTrade stands out as the best broker for its transparency, reliability, excellent trading conditions, 100+ trading instruments, 0.004s execution speed, and up to 100% Forex bonus.

AximTrade provides a comprehensive set of educational resources, technical analyses, and educational materials, making it one of the best platforms for beginners stepping into the world of Forex trading. Last but not least, with AximTrade you are provided around-the-clock customer support even on weekends.

Original Article: When You Can Move from Demo to Live Forex Trading Account

Disclaimer: This post is from Aximdaily and it is considered a marketing publication and does not constitute investment advice or research. Its content represents the general views of our editors and does not consider individual readers personal circumstances, investment experience, or current financial situation.