Inexperienced traders generally start trading with a forex demo account, since
it allows you to gain a basic knowledge of the market, familiarize yourself with
the MetaTrader 4 terminal and try to earn money risk-free. However,
everything you earn will be ‘virtual’. Hence, once you have gained
an understanding of the market and are familiarized sufficiently with the
trading system, you can try trading with a real forex account in mini lots. Trading
in mini lots will significantly lower your risks and, at the same time, will
help you to understand the process with ‘real’ money. If you have no experience
with the terminal, and you are not familiar enough with the way transactions are
made and the way profit is formed, it is strongly recommended that you trade
with a forex demo account first. Please remember that trading in financial markets
always involves an element of risk.
Open Forex Demo Account
According to Company's Rules, in case if You mentioned incorrect information
during registration, Your forex demo account will be automatically deleted by our
system during three days from the registration.
We strongly recommend that you read the following information on the
advantages and drawbacks of forex demo trading.
Forex demo accounts are often used by inexperienced traders who want to try forex demo
trades before progressing to real ones. Although forex demo trading gives the
uninitiated trader a certain amount of invaluable experience and insight into
the trading process, one should bear in mind that the obvious and major drawback
to forex demo trading is that it does not allow you to fully appreciate trading
on a real account.
The first major difference is a technical distinction: Trade servers are
constantly supervised by an experienced team of professionals who ensure
uninterrupted operation of servers and the software.
The second distinction of forex demo trading is the psychological aspect: you trade
in virtual funds. Being aware of this fact, there is a tendency to treat forex demo
trading less seriously, while sales in financial markets demand a great amount
of concentration and knowledge. This does not mean that trading on a real
account is necessarily difficult. However, a cautious approach is strongly
recommended. Some aspects of human psychology may hinder earnings potential when
trading in real assets is initially undertaken. Hence it is advisable to start
with mini lots and small amounts but with real money on real
trading account.
Another important distinguishing feature of forex demo trades is the speed with
which a position is opened. With a forex demo account, everything happens quickly, and
always at a price stated by you. There is a notion of the ‘first market price’.
But this is a notion only: The first market price has no clear definition
or mathematic formula. Moreover, prices may not be identical in different
companies at the same time. In the event of extreme market volatility, a «gap»
may evolve. This may happen when a subsequent quote differs substantially from
the previous one. In this case, an order on a forex demo account will be executed
at the price stated, while in real trading it will be executed at the first
market price. There are practically no situations with a forex demo account when
customers receive a new price. In real trading, this may happen because
on a forex demo account the quotation is given by a computer where a sizeable
departure from the current price is allowed. With a real account, dealers track
requests for sharp price departures from the market quote currently available.
This actually occurs frequently in real financial markets.
In order to benefit from the risk-free nature of forex demo trading,
one has to acknowledge that there are significant differences between this and
real trading.
Among the drawbacks, it is worth mentioning that, after a prolonged
period of risk-free forex demo trading, you may initially find
it difficult to switch to trading with real money due to the differences
in transaction processing and the effect of volatility outlined above. This
experience can be somewhat frustrating, since you often perform somewhat better
with a demo account than with real trades. This can lead to you finding
it difficult to tolerate losses, and perhaps thinking you’re your dealer
is «playing against you», questioning the company’s quotes and order processing
techniques, as well as the «first market price».
In the final analysis, the ultimate decision on how to act lies with you.
We simply carry out our duty in explaining both the advantages and drawbacks
of demo trading.
You can open a forex demo account of two types with FIBO Group:
In contrast to an ordinary account, a privileged one will not be closed after
one month. Additionally, it is possible to add unlimited virtual funds to the
account deposit. This type of account will prove useful to those who need more
trading practice and want to test their systems.
