|Yes||DMA||unlimited (log in at least once in 30 days)||Demo|
Before you start forex or cfd trading with your real money, you should first of all open a free demo account as long as you haven't got any trading experience. The reason being is that almost 100% of the novice traders wipe out their first trading account. This is just normal and part of the learning process - you just should make sure that you wipe out virtual money instead of your real money until you have developed a successful trading strategy and know how to calculate your position size. Even for experienced traders a free forex demo account is a good solution, for example if you want to:
- test out new trading strategies,
- an Expert Advisor,
- or just a new broker,
where you aren't familiar with the respective trading platform and/or calculation of positions. Some brokers offer a free and unlimited demo account, whereas others limit the demo account in time. With some brokers you need to log in at least once in 30 days in order to keep it activated. If your broker closes down your demo account and you haven't got your strategy yet or you haven't finished your tests, please get in touch with your account manager or just open a new demo account.
Being a trader means learning to trade!
If you think you are a natural and you can start trading with real money from scratch, the forex or the stock exchange will disabuse you very soon. In interviews all successful trades admit to have lost a lot of money in the beginning and they wish to have avoided this or that. Be cleverer! You need to learn the profession "Daytrader" like any other profession in the world - hardly anyone out there who believe they can fly a large Boeing 777 with 400 passengers on board without having to learn that in advance - astonishingliy they believe this with the stock exchange.
How long does it take?
It mainly depends on your ambition how long it takes to transform yourself into a successful daytrader. First of all you need to understand how the forex works which means you should read some good trading books, attend webinars and seminars, establish a successful trading trading strategy and - which is the most important - stick to it. Start trading with a small demo account of let's say $5000 as it is much more difficult to trade a small account than a large account and as soon as you have doubled your account with many trades over a long period of time (not a single lucky punch) you are on the best way to become a successful daytrader and you can start trading with real money.
Demo Account - Which Broker shall I choose?
Open various demo accounts with different brokers in order to test and compare trading conditions and trading platforms. All the tested brokers offer at least Metatrader 4 or own trading solutions. Don't open all demo accounts at once but test them step by step and take some notes. Once you have found the broker that fits your needs you can open a live account and transfer your money.
Mind the difference!
Please bear in mind that there will be a difference in demo trading compared to live trading. With some brokers order execution is far more quicker in demo than live as your order won't be routed through the real market, furthermore you will lack the psychological pressure you will encounter when trading your real money. But one thing is clear as crystal: If you even don't manage to trade a demo account successfully, you will fail live more than ever. On the other hand, some traders are more cautious when trading live and don't dare opening a new position for fear of losing their money. Thus trading demo is just a slight hint of what you will encounter when going live. When it comes to risk and money management, it is possible that there are different trading conditions (commission / spread based models) and that the broker has different account types. Don't miss asking your broker if there's a difference between demo account conditions and live conditions. Last but not least, make sure to trade at least roughly the same account size as you want to start trading live. It doesn't make sense to trade a 100K demo account with large positions and then switch to a $500 live account.
Demo Account or Small Live Account?
If you would like to feel the thrill of trading real money from the very first moment, of course you can start trading a small live account. Some brokers offer small accounts from $/€ 100 or even less. Please bear in mind that it is very likely to lose this money very fast, even faster if you don't have a microlot account. For expample, you just need to lose 50 DAX points (normal CFD size) and you will have lost 50% of your balance. In this case it is better to just trade the Forex with 0.01 Lot. But in the end it will be more promising if you save $100 each month and trade demo in this time and after ten months you can start trading at least a $1000 account.
From Demo to Live - Trading as a Living
We just want to make one thing clear: It is not possible to live from a $/€/GBP 5000 account on the long run. Bear in mind that there will be weeks or even months that end up break even or even in a loss. If you want to live like a homeless person you need at least 10.000, but in this case you can't afford a long draw down. What we recommend is: Don't quit your current job right now but trade your small account from small to at least 50.000 and you will be able to live from your trading. Experienced traders can make 50% in one year - take profit of your winners and reinvest them in each trade and your trading account will skyrocket because of the compounded interest.
Is it worth the try?
There's no doubt - becoming a successful daytrader is very hard and 95% of all beginners fail. Why do most beginners fail? They fail because of a lack of endurance, lack of money and/or they want to go back to their former life. What most beginners see from other traders is big cars, beautiful women, a lot of money and a luxurious lifestyle but what they don't know is that it is very hard to achieve this lifestyle. Like with any other profession it requires a lot of ambition, endurance, patience, absorbability and discipline. The forex or stock exchange is cruel, it doesn't forgive you errors. In the beginning you will need to accept that you have to sit in front of the computer for many many hours until you see how to decipher certain chart formations. There's a saying that says ... unless you have watched 10.000 hours your charts (roughly 3 years), you won't be successful trader. Although we think that it is not enough to just watch your candles go up and down day by day - there is some truth in this saying. For everyone who wants to be independent and who wants to work from any place in the world it is absolutely worth the try.
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