there is no different between demo and live account , but we cant focus in demo , its all about psychology , nothing without it.
I have traded both. Personally, I feel there is a difference b/w the two in terms of quoted price and executions. Of course, psychology plays an important role too.
the demo really able to bring good knowledge and experience for any kinds of beginners level , but we ignore it because there is no real money . we haver to come back from this wrong mentality.
Micro trading accounts are good for starting trading with a tiny amount of capital. But before that, ensure that you have a trading strategy ready. I would recommend trading on a demo account for a while before actually trading live.
Imo, traders should prefer trading on both types of accounts. Demo trading should be done to create, develop and test the trading strategy. Whereas, micro account trading helps traders to develop right trading psychology. Both the accounts should be given attention and one should not jump directly in to standard live accounts.
I prefer demo account because they enable the trader to get acquainted with trading software and get a sense of how the market functions, demo accounts can be useful to new traders. However, traders need to be aware that simulated results and actual trading outcomes don't always match.
I agree, this is a good categorization. And demo accounts will help a newbie and inexperienced trader to gain an understanding of basic know how and play around with the platforms. Demo account with some research into learning courses helps to cultivate the knowledge for a novice.
On a micro account, you can start trading with a little amount of capital, but on a demo account, only virtual money is used. One may select based on his needs.
micro account is really good to make sure live knowledge and experience but i have seen when beginners get a micro account they use high leverage and try to bring good amount of profit with very short time. this is really a bad trading practice.