Forex trading has now become a viable income option for everyone, no matter where they live or what part of the world they come from. Anyone over the age of 18 can legally trade in the Forex market as long as they have an internet connection. However, even though the shops attract and popularize Forex traders as wealthy individuals who drive expensive cars, they only make up 5% of the market, and most of them lose money. 

What is a Forex Demo Account? 

A forex demo account is a free trading account supported by a virtual fund that traders can use to know how to trade, test their trading strategies, and see how the Broker’s platform work. This is very useful for forex beginners as it allows them to quickly start trading online for free so they can practice trading before actually investing money. Forex demo accounts can be effectively used as a free trading simulator and can be very useful if you are new to Forex trading as demo trading mimics the real Forex trading experience. Using demo accounts, users can acquire knowledge on how to analyze price movements, practice forex risk management strategies, understand spreads, use tools, and use stops. 

Forex Demo vs. Live Trading Account 

A forex demo account enables you to practice and test different forex trading master plans with money without risking your own money, and it helps you quickly find a reliable Forex broker. However, demo accounts lack the emotional commitment to real Trading, making them less profitable than real trading accounts. Below are some potential differences observed between live Forex trading and demo account trading: · 

• Demo trading can create a false positive trading environment that is not available in live Trading when the trader’s account funds are at stake. 
• Demo trading has no real consequences for traders who do not follow their trading plan. Therefore, entrepreneurs can develop bad habits related to discipline that cost them when they sell their lives. 
• When trading on a demo account, traders may be tempted to overtrade or reduce risk. If they move to survive Forex trading, this behavior can have serious negative consequences. 

In general, demo accounts give new traders a risk-free opportunity to learn forex trading. Selling it is not profitable in the long run. Selling a live account is the only way to make a profit. 

5 Signs You’re Ready to Move from Demo to Live Trading 

#1 You feel comfortable with the Broker and his trading platform

Before you can open live forex, account and invest your hard-earned funds in your trades, you need to be familiar with your trading platform. Wouldn’t it be frustrating to realize that you have no idea how to close a trade the exact moment you do? Therefore, most experienced Forex traders use demo accounts to check and evaluate the reliability of the Broker before depositing their funds with him. You must also open a demo account with the same Broker you want to use for live Trading. 

#2 Your demo account is always profitable

It is not a good idea to switch to live Forex trading if you are not making consistent “profit” on your demo account. You can demo trade until you earn 70% of your trades. Maybe only 60%. You don’t have to think of entrepreneurship as a get-rich-quick scheme; instead, focus on profit in the long run. Don’t fix yourself if you can’t get consistent profit while trading with a demo account. Instead, create strategies that help you minimize losses and maximize profits by identifying high-risk institutions with a reasonable reward-to-risk ratio. 

#3 You have a well-established business plan

 Remember, when it comes to a live forex trading account, you are dealing with real money and real Trading. So, before you make the switch, be careful not to destroy your trading strategy. You must have some trading plan in place for your demo account. The strategy you use in live Trading will change and adapt as you become more comfortable. And you need to know how to tweak it until it works consistently. 

#4 There are clear strategies for risk management. 

It is said that 50% of your success in Forex trading depends on developing profitable strategies. The remaining 50% relies on an effective risk management strategy. Having a thought-out set of risk management rules is also a must when moving a demo to a live Forex trading account. Remember that the Forex market changes rapidly, and there are times when the market can go crazy, making you question your analytical and Trading skills. When you’re going through these tough times, your risk management plan can do everything to protect you. 5. You don’t lose your cool during a trading loss

Yes, if you can make good decisions on your demo account without being overwhelmed by emotions, it’s time to start trading with a live Forex trading account. However, keep in mind that live Forex trading requires a higher level of emotional control than Trading on a demo account. Because you are trading with real money, and the numbers are constantly changing. 

#5 Have enough capital to get started

In order to be fortunate in Forex trading, you need to have a sufficient amount of capital available. However, it is important not to risk more than you can handle. Using a demo account can help you better understand how much you can invest in a trade and how you can use Forex leverage to your advantage. 

Have fun trading!

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