Demo accounts for online trading platforms. If you have any interest in trading and even thought about it while online then you’ve been served ads for these types of trading accounts. The idea is pretty simple: The demo account works the same way as a live trading account except the money you use to trade is not real. Same markets. Same assets. Same events. Same trends. 

So, why should you use a demo trading account? Is it worth it? 

Let’s find out.

Demo Trading Accounts Aren’t New

While the internet and the world of online trading may be relatively new technology, the concept behind demo accounts is as old as trading the markets themselves. Back before home computers and online brokers, traders would engage in “imaginary trading” using just a notebook. They’d note exits and entries and make estimates on whether their trades would have been successful. This “paper trading” allowed traders to test their methods and learn to trade with more confidence. Demo accounts could be considered the modern descendant of paper trading, and you can usually open an account in just a few clicks. 

How Do Demo Accounts Work?

Demo trading accounts are just like real trading accounts except you use virtual funds to make your trades. But you get to trade in a real-time simulation of the real markets. That means if a certain asset’s price changes in the real world, then its price makes the same change in the simulation. 

What’s the Advantage of Using a Demo Account?

For new traders, a demo account is a great and risk-free introduction to how the markets and trading work. They get to experiment, make mistakes, and learn to navigate the trading world before using any of their own capital. But traders of all levels can benefit from opening a demo trading account. 

First of all, it offers a way to test out and refine new trading strategies before using your own money. And, if you’re experienced trading one type of asset and want to try trading something new, you can test these new markets and your intuition without worry. 

Demo to Switch to a Better Trading Platform

Another advantage of opening a demo account is it allows experienced traders to test drive a brand new platform. The demo account gives users access to test out what markets and assets are available on the platform, execution speed, deposits, withdrawals, charting tools and more. It lets them trial all its tools and trading resources to see if the platform can better meet their trading needs. Once they’ve seen the platform in action they can then easily make the switch to a live trading account and start making trades for real.

Explore a Demo Trading Account

Ready to test drive a demo trading account? The Taurex demo account gives you access to a powerful, secure and intuitive trading platform, along with easy-to-understand charting tools, insights into news and market sentiment, and all the tools and educational resources to help you make more informed trading decisions. Try it out for free at tradetaurex.com or download the app from Google Play or the Apple App Store. 

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