A demo account is a platform where a potential investor or trader can practice how to trade. It is also a platform for learning how trading platforms work. You can use it to test run a strategy for free before applying that strategy to live to trade. You can easily find a demo trading account Canada where you can begin your trading adventure instantly. Investing real money without first practicing the strategy is not a good investment decision since it can lead to huge losses.
As a beginner in online trading, you should see to it that you first practice your trading using a demo trading account as this can boost your trading confidence and help you to make better trading decisions when you eventually start trading live. The demo account will help you to understand what you will encounter when you start trading live. It helps the trader to practice and explore without the risks associated with online trading.
Many beginners find demo accounts to be highly attractive since they offer several benefits. How do demo accounts work? We will provide helpful answers to the question in the remaining part of this post.
The demo trading account in Canada works just like the real trading account. One of the major differences is that you will be trading using fake (demo) money when you trade using the demo account, unlike the real trading account, where you will trade with real money. The demo account does not expose the trader to any of the risks you will have to face when you trade with a live account. The demo account helps traders to test their strategies for profitability before applying such strategies to live trading. The fake money you use in the demo account will help you to determine when to enter or close a trade.
You can find demo accounts on many forex trading platforms and other online trading platforms in Canada. You can also find stock market simulators on many other platforms that work in the same way as demo accounts.
You will need to first register on the best broker for you among the available trading platforms in Canada. In most cases, you will only be required to fill out a short form to register. The form will usually require that you provide basic personal information. You may also have to indicate the assets you want to trade. The entire registration process will usually not take more than a few minutes of your time, depending on the trading platform where you are registering.
You will need to download the trading software of your desktop computer or mobile device, depending on the one you prefer to use for trading. Make sure you download the trading software from reliable sources recommended by the online trading broker. This way, you will not end up introducing spyware or malware to your device. You should find out how easy it is to use the trading software before you download it. Check also if it has an adequate number of technical indicators and other useful trading tools before downloading.
After downloading the trading app, it is time to choose a demo trading amount. Most trading platforms offer $10,000 make money to demo traders and some other ones can offer up to $100,000 demo money. There are cases of some other trading platforms offering up to $1 million. This way, you will have a lot of practice money to work with. While using a demo trading account Canada make sure you adopt the same style of trading you would have used in live trading despite the huge amount you receive as practice money. The rounded figure amount you receive as practice money from the brokers will make it easier for you to track your progress in demo trading.
After the demo account is ready, it is time to venture into demo trading. Choose an asset to trade and place a buy or sell trade. However, it is important to develop a strategy before you start trading. If you want to use indicators, load the indicator on the trading platform and follow it accordingly. Make sure you stick to the strategy you develop so that you can improve it over time and also get more confident in trading. You can better track your trading history while using a demo trading account Canada by using simulators that can track your trading history.
Those that want to learn how to trade online will find the demo account useful a great deal. Check below for some of its major pros and cons.
It depends on the individual trader. However, some experts suggest that you should use a demo trading account Canada for two or three months before you venture into live trading.
It depends on the type of trader you are. Some traders prefer to use price action strategies, while some use fundamental analysis. You can also opt for technical indicators.
You can use virtually any asset to demo-trade. As a beginner in online trading, it is better start with just one asset. You can now consider some other asset classes after perfecting the lone asset
You should use the same lot size you would have used if you were trading live. It will help you a lot and prevent any false sense of confidence.