What is a MetaTrader 4 Demo Account? It is actually very simple, a MetaTrader 4 Demo Account, which can be also called Forex Practice Account is a trading account where you can trade with virtual money. There are many reasons to have a practice account and I strongly suggest you to create one if you haven’t got one already. In this article we will see why you should have a practice account and how to create a demo account to use with MetaTrader 4.
Why a Demo Account ?
Having a Forex Demo Account brings many benefits to the trader, here some of the most important:
- Virtual Money, a Demo Account is loaded with virtual money, so that you can experience trading without risking your real money and savings!
- Check your broker, usually brokers provide the possibility to open a Demo Account, this will allow you to test the broker’s settings and condition, for example connection speed, margin and limits, features
- Test your Scripts and Expert Advisors, before running a script or an expert advisor on a real account it is recommended to test it on a Demo Account to check that the behaviour is as expected. No one wants an expert advisor to run and start opening and close crazy orders with real money, running on a Demo Account first will help to find bugs in the code
- Test your strategy, assume that you have a new trading strategy, before using it with a real account you will probably want to do some backtesting to check if it was profitable in the past, you probably want to test it with the current market condition as well, you can do it with a Demo Account and see if the strategy performs well
Why NOT a Demo Account ?
There are some differences between a Forex Practice Account and a Real Account, the most important are:
- Trading Psychology not respected, trading with Virtual money is different from trading with Real money, you don’t feel the same risk hence the psychological reaction and discipline are not the same
- Historical data is limited, in a Demo Account you will not have available the same historical data of a real account, usually you can find only a few weeks or a few months of data, this will mean that you will not be able to backtest your strategy on a long period of time
- Trading execution may differ from demo to real account, a demo account has the same settings as a real account in terms of margins and limits however it is usually hosted on different servers, this can cause a slightly different behaviour in the execution of orders, for example delays
Despite the existence of some differences there is no real reason not to open a Demo Account, so read further and see how easy it is to open one.
To open a Demo Account you will be asked to enter some personal information like, Name, Surname, Contact Details. No Credit Card or Bank Details are requiredm as mentioned before, Demo Accounts are FREE!
You can open multiple Free Demo Accounts in FXChoice
How to Open a Demo Account with FXChoice
These days all the brokers allow you to to open a Demo Account, they invite you to try their services with the hope that you will then open a real account. In this case we are going to open a Demo Account with FXChoice as it is our preferred Broker
If you haven’t installed MetaTrader yet please read our article How to Install MetaTrader 4 Client Terminal, once the installation is completed you will be asked to connect to a server like in the image below.
If you already have a Demo Account with your broker you can click Cancel and right click account in the Navigator section, then click “Login to Trade Account”, if you wish to create a new Demo Account with MetaQuotes instead click “Open an Account”
To create a Demo Account with FXChoice you will have to go to their website and click on Open Demo Account, once the registration is completed login to the Backoffice and create a new Demo Account .
You will be given the login, password and server to login to the Demo Account from the Metatrader 4 platform.
Now that you have created a Demo Account you can start trade and test your strategies and MQL code. You don’t know what is MQL? We will get there in the next article.
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