Is demo a step before real trading?

I had decided that is the amount that I will trade if I go "live" thus when I open the demo I set at that amount. So, is it alright to open the demo with capital cap at same amount as the "live" or otherwise. Of course capping at that amount also mean I might hit "margin call" in the demo very soon.

Pls advice!

You must adapt the lot sizing accordingly.

Demo account is the best way to cut your teeth at trading. After that I would recommend moving to a micro account, and trading that first before moving up in size.

keep that going for 3 months then go live.... if you can't post 3-6 profitable moths on demo doubt live accs will work out.

Yes, demo is the first step for beginners if they want to start trading in forex. It's free risk but i also doesn't mean that we use it for trading without rule. We must maximize demo account as well as possible. By using demo account, we can learn about forex trading and it will be useful when we are trading with real account. The experience will help us to prepare ourselves to face real market situation

Well said mate! I've just lost $3000 demo account to $1300! I'm super happy I haven't started yet with real money (again)!!

No doubt trading on demo before going on real money could help any newbie to get familiar with the Forex Trading but I have seen so many times traders doing great on demo and losing money when they switch to the real account. Why's that? One thing that the demo account will never offer you are the emotions. The emotions will drive you nuts when you are trading on real money. It's well known that emotions as greed, hope, fear and some others are pushing the trader to act irrational when they are trading real money. Do not underestimate the emotions. Another thing that the demo account will never push a trader to do is the over-trading. Once you cashed your profits on a demo, there will never be that shadow force to push you to enter another trade and another because you feel you really can beat the market this time. Only that the market is taking back all the profits you made and something extra. Yes, trading on demo is a good approach but until you will not blow up 1-2-3 trading accounts with real money in it you will never know what trading really means.

I am trying to create an environment where newbies can trade with real money so they can feel the greed, the fear or the hope but in the same time to limit their losses. I think it can be done. As crazy it may sound, I created an environment where with only 10$ invested, the newbies can place 1 lot size trades and to apply a 2% risk management. Seeing how ur trade brings 500$ profit on 50 pips move is not the same feeling as you have when you see 5000$ but on a demo account. Some people said that my system could work and that was a great idea and some other says that no way such a system will ever work. I leave it to you to judge it and express your own opinion. If someone is interested please visit tradingfloorfx.com

another thing is you don't get broker manipulation in demo...

yea but there is a whole lotta difference when the real thing begins u learn better with a real account

and also with meaningful risk. trading 0.01 is same shit as demo.

I remember I had to risk 33%/trade to meet with my emotions. not that it was sub $500 account...it's very interesting when the worst you comes out.

well if you cant win on demo you sure won't be able to for real, so demo first and see if you can cut it
(spend the money you would of lost on the real account on something nice - don't give to the market makers)

most pros still demo their new strategy's - in fact only a fool would n't practice first on demo
and must be the no1 reason why newbies fail,

if you think you can box with the big boys - jump right in they are waiting...

when you're ready you will know and then start on micro as many have previously mentioned
jumping in the market with real money won't help you learn faster, but it will firstly deplete your money and then increase your resistance to learn faster (as usually most will of taken a kicking)
or you blow the whole thing, just as you thought you were starting to get it

there are many misconceptions about the market - and not demoing and running to the market to learn is another

how many times do traders think if only i had known about this last yr.. well that's why you demo.. as there are many things that won't be apparent when you first start and once learnt seem the easiest thing in the world

demoing with no emotions of money with plenty of experience and knowledge should prepare traders (somewhat) not to become one of the 95%
but going bananas on demo adding huge stakes and averaging down etc, won't work for real so whats the point on demo
treat the demo as if it were real and give yourself the very best chance you can

lol thats a fundamental difference man true that

demo account is the best first step for new trader to do before they doing a real forex trading. because they can get a lot experience and learn about how to do forex trading from it. though they cant earn some money, but they still can got some good experience that very needed before they do real forex trading.

Hi!!! I feel that opening a demo account with a new broker is always a better option rather than going live only if you are a newbie or amateur trader. Some traders who have years of experience avoid going on demo because they know about the current market conditions. But if you dont wanna miss any opportunity that may arise during the demo period, you can go for live account but with small amount and check for atleast a week regarding the trading conditions and spreads and in case u like it, you can deposit more amount and do trading. If you are learning trading, PLEASE GO FOR DEMO ACCOUNT.! I hope it helps!!

Happy Trading!!

I think that going through a period of demo account trading is a must for every newbie trader. That way you learn the software itself, as well as the market without any unnecessary stress and pressure. It's not a good idea to start trading with real money right away.

Trading is 90% psychology and the psychological factor is not practicing with a demo account, i think that a cent account is much better, you risk little but at least it begins to have to do with money.


A demo account is helpful to try new strategies but not the key for beginners. Spend too much time playing with a demo account could lead the new trader to misconceptions, newbee could go from a demo account to 10k account, because he think to beat the market without ever measured with the worst enemy, himself.


Trading is a game of money and take away the money from the equation does not make sense.

My 2 cents

by doing forex trading again and again at demo account, that will give u a lot experience, and also that will make u can read the unpredictable situation when u wanna predict the price movement, just make sure u have a good preparation before do real forex trading at demo account.

I've been doing it for seven(7) years, why not?
After a while, you realize how awfully risky this business is, and unless you're really psychologically good at taking risks, few chart patterns will matter much.

Keeping up on trading is interesting, though.


Besides this, please read the rest above, who're (mostly) active traders.

i think demo account is the best way for new trader to start and make first step before they do real forex trading, because they use virtual account with virtual money, so u can do forex trading again and again without worry about any risk.

For me demo is best way to start especially with practicing. I am always trying up new things as i have nothing to lose, but i do work on real account, it is mainly for long term trades.