A demo account is a straightforward way for Forex beginners to know how to manage positions without putting their stakes at risk. These accounts are also beneficial to savvy traders since they can test new strategies using virtual money to ensure they function well in the real market.

FBS brokers do not offer a demo account registration. Instead, you must create a demo account on your own. Below we discuss how to create a demo account, as the example will be based on the Avatrade demo account.

Steps to Create a Demo Account

Opening a demo account is achievable by following the below steps;
  • Fill out a registration form
  • Receive an account number and a trader password
  • Download MetaTrader and sign up.

Benefits of Demo Accounts

1. It Hells Traders Test Trading Skills

The main advantage of demo accounts is that it enables traders to test their trading strategies without risking funds. Most brokers continue using these accounts after picking their best platforms to test as many strategies as possible.

2. They Study the Trading Platform

Demo software allows traders to get familiar with the platform’s characteristics to know whether their strategies alight with them.

3. They Help Traders Manage Emotions

Many emotions are involved when it comes to staking money to make more money. Overconfidence can kick in after a few wins and doubt after a few losses. These emotions often affect a trader’s judgment when making the next trade.

A trading simulator enables traders to detect these emotions, to create a routine that will handle them. Most trading newbies do not know what emotions to expect, and they can find out best without losing their stakes.

4. They Help Traders Discover their Best Trading Routine

Forex traders operate five days a week, but it is advisable to trade when you are completely focused on the market. The best thing about Forex markets is that you can create a trading route that aligns with your family life and work.

Trading demo accounts help traders find the best trading routine before losing money.

How to Use a Demo Account Correctly

Forex demo accounts have many advantages and disadvantages you need to know about. Below we look at how to use a demo account correctly.

Create a trading plan

The first step in using a demo account correctly is to create a trading plan to use on an actual money account. All traders need a foundation even when experimenting on these accounts. The plan should consist of the following things;

Trading date- it will help to trade at the same time daily to know more about the session’s movement.

Marketing trades- the best way to implement Forex training learning is by focusing on a few markets. 
The most famous FX currency pairs include USD JPY and EUR USD.
Trading strategies- pick the tools and create a strategy around them to know the conditions needed when placing a trade.

Final Thoughts

A demo trading account enables traders to simulate a trading environment without risking money. It has many advantages, and we have discussed a few in the above article.