Demo account or Micro ?

Oxymoron said:
Why to use a demo account?

To create workable trading strategies

To become familiar with the trading platform and trading conditions offered by the broker.

Trading on demo accounts is fine as long as you want to practise and develop skills. But trading is all about risk and mindset. And demo accounts don’t help in any way to develop that. Stick with them to fulfil the above purpose. Once you spend plenty of time demo trading, at least 6 months, start trading with a micro account.
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Great reply, you are absolutely correct about demo account and micro/cent account. Standard accounts should only be open once you are an experienced trader on the market. Beginners wanting to move over to a real trading account should always stick to a cent account.
 
AndrewMcCalam said:
micro account is really supportive for acquiring live trading knowledge and experience.
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Definitely! No one can immediately trade big accounts. With small risk, you not only learn about the intricacies of trading, but also about risk management & trading psychology, which traders miss out on demo accounts.
 
The demo account can be used while you are just starting out in trading, and it can help you develop skills and improve your strategies.
After proper training on a demo account, the Micro account can be the first live account used by newbies so that risk and capital traded both are low and live trades can be experienced.
 
I began trading with a demo account, and then moved to a micro account. Demo accounts help you build technical skills and become familiar with the market. Use micro only when you feel ready to take an actual risk.
 
A demo account is free to place to practice without any risk, some traders may be like to take part in demo contestcompetition, but usually work in contest demo is different with practice with the goal, demo contest leads trader use max lot size allowed and not pay attention with the risk management.
 
For beginners without any experience, it is better to use the demo account to avoid loss and learn about the forex market because the demo account is a risk free environment.

After several months of demo trading and if the trader is confident enough to live trade, the micro account is best because of the lower loss in capital and risk taking.
 
Abbas Ali Khan said:
really its a complicated question to answer , i feel micro account can make beginners greedy at the first stage.
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It doesn't necessarily have to come to greed, unless you just want to be hasty and rational. and most especially when your broker offer a good micro account with reasonable minimum deposit, an amount you can afford to lose. So while you demo trade for practice, you can equally open a micro account to try out your hand.
This was what I did in my first days with Forex Chief, as their minimum account size was obtainable and fair, so I could demo trade and trade live at the same time without the fear of losing too much.
 
A demo account is indeed free without any risk, usually, the broker offers a demo account with huge initial capital let's say $5k or $100k, but in real trading, most beginners start with low budget trading less than $100, you can imagine the difference amount, in real trading almost trader fail less than six months.a micro account designed for newbies to start with low-budget trading.
 
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