CFD Demo Accounts
Although it is difficult for many people to see the point in trading within a virtual environment where there are no tangible rewards, opening one or more CFD demo accounts is highly advisable for two reasons:
- It gives those that are new to derivative trading the chance to put the intricacies of CFD trading into practise within a risk free environment. If you are a beginner then there is much to learn and it is pointless diving in at the deep end and risking your hard earned cash when all it takes is one bad decision to lose considerable sums of money.
- There are so many CFD companies on the market that it can be difficult to decide on which one to trade with. Most brokers provide demo accounts and by ‘testing the water’ it is possible to decide which one ticks the boxes that are important to you.
What can I do with a CFD Demo Account?
Demo accounts provide access to all the features that a live account does, other than the ability to trade real money. You can execute orders, get used to setting stop losses and limit orders, research individual assets using charts to help with your investment decisions and much more. Many companies also offer mobile trading with the option of trading on the move on a demonstration basis. The broker City Index offers a particularly good mobile trading platform that has won countless awards.
What Companies offer Demo Accounts?
You will find that the majority of CFD brokers offer demo accounts. We would advise you to register with a number of different providers to get a feel for their offering and to compare the features on offer. Some of the leading brokers include IG Markets, ETX Capital, Intertrader, City Index and Ayondo.
What strategy should I Use?
When trading on a demo account, it is best to use exactly the strategy you would if you were trading real cash. There is not part in opening unrealistic contracts as they will not reflect what would happen in real life and might give you a false impression of what would happen when trading for real.
Spend a minimum of a few weeks familiarising yourself with different trading platforms and placing dummy trades. You might even discover that you aren’t successful at trading which in the long term might save you a lot of money. It is also recommended to register with a number of different companies so you can decide upon which one id the best option for you