Demo account or Micro ?

[currencylover]

In a demo account, you not only learn to trade but also, you can test your strategies. Firstly, formulate a strategy, test it on a demo account, practice for some time and then you can switch to a micro account.

 

[Zolotilar]

I still think that the best option for starting practice is to use a demo account.

 

[nattybumppo]

beginners always trade in a demo account for acquiring basic knowledge and experience but in practically they trade at random and got nothing ultimately. for that reason i think micro account is more appropriate for beginners as practice. whats your opinion ?

I vote for micro. Having some real money on the line will "concentrate the mind wonderfully," but the amount risked with one micro lot will not ruin the new trader.

 

[nattybumppo]

I think too much time shouldn’t be spent on a demo account, max 1 or maybe 2 months (in case of complete beginners) are good. If one is not able to understand the basic things of trading in such a time: like placing trades, looking at charts, analysing them, applying indicators, sl, tp, etc, then maybe they never will. So it’s no point just whiling away time. After getting a fair idea it’s best to move on to a micro account rather quick because that’s where trading psychology comes in picture. There are couple of good platforms requiring lower deposit to start with which can be helpful for beginners to start with. Instaforex, fxview, xm are some worth checking out. But just beware of the high leverage that these guys offer, can be tempting to use but should be avoided in the start.

With a micro lot, the new trader can risk the high leverage. Indeed, watching the wild swings in both directions that can come with high leverage will be a good education in managing risk. With a larger position, it could, of course, be disastrous, but a micro lot risks very little money per pip.

 

[nattybumppo]

Traders can learn in an efficient manner because there is no fear of losing money.

I view this as a disadvantage. They need to learn to manage the fear. Put some skin on the line.

 

[Abbas Ali Khan]

both are important , its depends on you which one o you like , i mostly prefer micro for ensuring live knowledge and experience.

 

[Asher.Fr]

Looking for broker recommendations with tight spreads, I'll mainly be doing Intraday (Scalp).

Since I live in Australia, an ASIC regulation broker would be preferable and ideally an ECN/A-book broker.

 

[JimmyChoo]

right now i am using micro account where i using my recent trading strategies, sometimes i do losses but this is not much, took so many live trading experiences.

 

[tedmos38]

really its a complicated question to answer , i feel micro account can make beginners greedy at the first stage.

true that

 

[Raheel Shaikh]

My personal view on demo accounts are, use it just to understand how to place orders, close, partials and all the basic task
Once you understand how it works
maybe move to an account with small capital, can be as small as 100$
Demo accounts don't give you an understanding of emotions and losses as much as real money does and trading is made up of 80% emotions, which you don't catch up on a demo account.