May 17, 2021

Why Do You Need A MetaTrader Demo Account?

Who needs a demo account? Is it for newbies only? Forex demo accounts are offered for free by FX brokers in MetaTrader. Demo accounts are very useful not just for beginners but for traders who already have experience in the market. For beginners, they can use it to test the tides, familiarize the platform, and experience the emotions felt by most traders seeing the losses and gains as they trade with their hard-earned money. Demo accounts are also useful for experienced traders. They can try their trading strategies and polish the old ones.

Demo accounts also have the same features as a real trading account. Things like market data, indicators, analysis tools, and even get the help of a customer support team. The only important difference between demo accounts and live accounts is the fact that demo accounts do not actually have access to the live FX market, but instead, they are relying on the simulated data.

Who can use a Forex Demo Account?

Beginners who want to try out trading without the same risk as to the live market. It lets them understand the FX market pretty well.

Traders who want to understand the new features offered by brokers, their services, and their entire trading platform as well.

Traders who want to test the platform and understand how everything works on it.

Traders who are looking for a new strategy. They see demo accounts as the perfect place to experiment with a new trading strategy.

Pros and Cons of Demo Account

Knowing the pros is as important as knowing the cons or the disadvantages of demo accounts. Below are the things that you need to know about demo trading accounts?


Demo accounts are totally free – you won’t have to pay anything when you open a demo trading account. Also, you won’t be asked to deposit funds into your account since you will be given free virtual currency that you can use to trade into your demo account.

Demo accounts expose the trader to the actual situation of the market – since it mirrors the trading activities of the real, live trading, traders can get a glimpse of the market and how it feels to trade with a live market.

Demo accounts help test and develop trading strategies – not just for beginners, demo accounts are also for experienced traders who want to develop and test their trading strategies without the risk that the live market has.

Demo accounts help to better understand the platform’s features and services – your broker would want you to understand the platform more than anything else. Demo accounts should teach you a lot of things.


It can give traders a false sense of confidence – since you know that demo accounts are not real, and no money is wasted, you may overtrade.

Could encourage bad habits of trading – there are traders using demo accounts who aren’t taking serious time analyzing their trades. This is nothing but a gambling mentality.

Limited funds and time – most MetaTrader trading platforms only offer a few virtual cash to trade in the demo account and the duration only takes a couple of days.



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