Beginner Traders: Should I Start with Demo or Live Trading? There is a debate about the use of demo accounts for beginner traders to learn how to trade. Some say you should never trade a real account until you become profitable with a demo. Others will say demos are worthless - just open a real account and get started.Well, I am in the middle of the road here. Let me explain: I do believe that there is value in using a demo account. But I believe that people do not understand on HOW they should use the demo account. So many people start a demo account with $10K, $50K, $100K, or even more. Let me say this - if you are going to trade a demo account with $100K or a $100 million account, then you should trade like you are trading a live account and be prepared to handle the risks in the real world with the same amount. Why do I say that? This is because there is one big difference between demo and live - psychology. When you have nothing to lose, such as on a demo account, I can guarantee you that you will trade differently versus your own hard-earned cash is on the line on a live account. You should build success with a smaller amount. Even if it takes you a little while longer than you thought to make your first few millions, I believe the wait is worth it.While you might not think so, I am sure many traders who have gone from demo to live will attest to this. From personal experience, I have found that demo versus live trading is significantly different due to the emotional and mental acts of our trading behavior. Demo trading were my stress-free trading days rather than my first step into the world of real trading, which was really tense. Additionally, with ECNs, traders will experience slippage and liquidity issues, such as limits, and stops not being executed, which do not factor into demos. You also have to consider market makers who will requote—among other things which could affect profitability. Therefore, it is possible to trade with a small amount, be profitable, and build upon that. No harm, no foul – Global Demo Trading Competition However, there is always that thought at the back of your mind: if I lose on a demo, it won’t matter. Many others, including myself, agree. MultiBank Group is a huge advocate of demo accounts. So much so that they are currently running the Global Demo Trading Competition. You can join and win monthly cash prizes from up to $15,000 and brand-new Mercedes S-Class. You can register @ https://bit.ly/3CE4Uu8 and try out your luck while also trade on the demo - but apply the same demo trading approach I mentioned above. Final Thoughts You might wonder, “I’ve traded on demo. How long till I start trading large amounts on live?” I would say three weeks to weed out the luck. Then, trade for two profitable months in a row and if you can do that, you may be ready to invest larger to get a feel for the psychology. The key to success, in my opinion, is not entirely to skip the demo but to be profitable for 3-5 months on it with the same amount you are planning to open a live account. And then, you should open a live account with a smaller amount. And in case you bust yourself, you won’t be financially burning yourself, but simply learning more. Good luck! Danny Salman Senior Marketing Analyst MultiBank Group
You neglected to mention that US residents need not apply. Fascinating, since "MultiBank was established in California, USA in 2005..." Alas. *shakes fist at the SEC!*
As for the post above, it is purely educational and is focused on new traders who would like to try a virtual simulation to gain trading experience while using a demo account. Please keep in mind that we were established in the US and are not currently based there. Therefore, we are unable to offer our products and services to U.S. residents due to certain regulations.