Trading in forex can be challenging and risky for newbies especially if they’re looking to make a career of it. Trading is an extremely profitable method of earning active or passive income. But to do so traders must be knowledgeable about trading forex. Plus, expertise, experience and knowledge are also important. But new traders have none So how do they gain that? The answer is simple! A demo account allows traders to trade and trade, which is a major boon. A live account is profitable due to its profit, is a boon too. This article stresses the advantages of both trading accounts.
In simple terms the term demo account means all about trading on a simulator account that helps to trade forex pairs by using virtual currency. This virtual currency will make the difference between earning and losing in a ‘virtual’ way, meaning there is no actual loss or gain. This is an advantage for people who are brand new to the market and don’t intend to lose money due to the absence of prior experience.
A live account On the other hand is a kind of account which is utilized by traders to earn profit. It’s a real-time account in which traders make’real gains and losses. This type of account is ideal to traders who have already traded enough on the demo account or live account. For beginners, it is possible to open an account with a micro-sized size to trade at a low risk. The mood of traders is diminished by losses that accumulate. This is why it is essential that traders go through the process of trading on the demo account to ensure that they don’t lose faith when trading on a live account, even with a modest sum of money.Read More