Trading is full of risks. You first need to develop a risk management plan to minimize the risks. But then, the risks are not entirely removed. You will have to accept that risks and losses are part of trading. But for newbies and budding traders, it is much better to get to know the trading platform first before you jump into live trading. The solution to this is the demo account offered by the MT4 trading platform.
From here, you can experience trading without minding the risks. In other words, you are in a secure environment where you don’t lose real money. Instead, you will be provided with a virtual balance that you can spend as you trade, you are sure to gain the much-needed confidence and develop a better understanding of what’s going on in the market.
Risk-Free Trading with Demo Accounts
Since demo accounts have the same layout as the live version of the trading platform, you can choose the market that you want to trade. You will be provided with virtual funds that you can spend but you cannot withdraw. Using it, you can trade with commodities, cryptocurrencies, indices, and Forex pairs. This is the best place to test your strategies in trading and also gain confidence in your trades which is an important factor when you start trading in the live market.
With trading accounts, you can also trade using different add-ons and indicators which are originally found in a live account. Indicators such as Pivot Points, Renko, and Order History are available in the demo account. For the add-ons, you can use the mini terminal, the alarm manager, and the stealth orders for free. These add-ons help you customize the trading platform according to the style that you want.
The difference between Demo Accounts and Live Accounts in MetaTrader 4
When you trade in the demo account, you will not be charged with dividend adjustments, slippage, and interest, or even the out-of-hours movements of the trading price.
When you have insufficient demo funds, your trades will automatically get rejected. But with the live account, your trades will never get rejected because of the size or price that you have in your account.
When you trade-in demo accounts, there are no charges for the chart packages. But this rule contradicts when you trade in live accounts. You will be charged when you trade in a live account.
When you trade-in demo accounts, your trades will never be closed when you reach insufficient funds to cover your losses and margins. But in the live account, these are the things that you should mind all the time to avoid closure of your trading accounts.
Upgrading Demo Account To Live Account
In MT4, you cannot change your demo account into a live account. You first need to create a separate account for your live trading. But, there’s no need to worry. This process is quite straightforward and can be done with a few steps.