The Plus500 Demo Account Review
In the Plus500 review written and published by our staff not too long ago, we didn’t delve too much into the Plus500 demo account. The truth is most people aren’t all that interested in demo accounts. They are more concerned about live trading and how to make ‘real money’ NOT ‘fake money.’ However, what many traders have come to realise is that demo accounts are a nifty tool and can certainly aid in becoming a successful trader. Below we go into further detail discussing the main benefits of demo accounts:
- Zero risk at play
- No time limit on the Plus500 demo account
- The ability to easily back test trading strategies
- Practice makes perfect
- Become familiar with the vagaries of the Forex market
One of the first pieces of advice expert traders tend to tell newbies is to start playing with a demo account. Beginners shouldn’t just ‘play around’ with demo accounts, they should learn how to use them properly. Many beginner traders don’t see the point of using a demo account such as the Plus500 demo account. Why should they waste time playing around with fake money when there is so much money to be made on the open market?
While the question is valid, a new trader shouldn’t expect to be a trading sensation overnight. It takes currency traders years to learn the ropes and finally feel comfortable and confident trading Forex and this is the real benefit of a demo account. These practice accounts afford newbies all the time in the world to learn the Forex trading ropes without taking any risk at all. Without the fear of losing everything, traders can patiently build confidence to go on and master trading. Don’t turn down this opportunity as not many other industries provide participants this chance.
Unlimited Demo Account
I just mentioned how traders can patiently learn how to trade without rushing things. They can learn how to trade Forex using a demo account at their own pace. However, this is not entirely accurate. Unfortunately, not all Australian Forex brokers offer their customers unlimited and unfettered access to their demo accounts. Remember, Australian Forex brokers are in the habit of making money and lots of it. They’re also impatient and want to make their money as quickly as possible. It is for this reason that many brokers limit the amount of time a user can access their demo account for; usually 30, 60 or 90 days. Fortunately for Plus500 customers, and a few other companies as featured in the table below, the Plus500 demo account is unlimited and traders really can practice in patience and peace and quiet.
Effective Back testing of Trading Strategies
Similar to writing an assignment or essay, successful Forex trading requires lots of planning and testing. It can often take months to devise a sound trading strategy. Furthermore, it would be foolish to launch a strategy on the open market without ensuring it is as fail safe as possible. A trader, no matter how senior, will not be able to predict to absolute perfection how the market may perform. Currency markets are inherently volatile and as a result tactics needs to be dependable. The Plus500 demo account is the perfect environment for back-testing trading strategies ensuring they are as tried and true as possible before live trading commences. Not confident your strategy will hold up? Not a problem! With Plus500 you can spend as long as you like testing and critiquing giving yourself every opportunity of being successful when you eventually commence trading with real money.
Practice Using Plus500 Software
The Plus500 demo platform is almost identical to their live Australian forex broker trading accounts. Not only do budding traders need to ensure their strategies are tried and tested, they also need to be as familiar as possible with the trading tools they plan on using. Every company’s trading platform is slightly different and a split second hesitation due to not knowing where to access a certain graph or chart or forgetting how to execute a trade at the wrong moment could mean losing out on a fortune. Again, Plus500 customers are lucky that they can take advantage of an unlimited demo account. As such there should be no excuse and no questions about how to use Plus500’s software when it comes to live Forex trading.
Prepare For The Vagaries of The Forex Market
A demo Australian forex broker account, particularly the one offered by Plus500 give clients maximum exposure to the way currency markets operate. What do I mean? When trading live currencies, a piece of news that flashes across your TV screen or news ticker could have the potential to impact your open orders or your pending sales. Its actually quite intriguing getting to know how interconnected global financial markets are. It is one thing to learn about the inter connectivity of money and capital markets from text books or tertiary courses but it is a completely different ball game when you’re trading. Sudden changes in economic data triggered by a global disaster such as that experienced on September 11 can never be planned for when trading live. Yet, when using a demo, trading during turbulent or catastrophic events can be programmed into your software to see how you would have fared. You’ll learn pretty quickly that it is never advised to trade during a catastrophe. Witnessing an landmark event during a demo trading session will show you why in the best possible way to learn.
You can bet your bottom dollar that a lot of the modern Forex gurus started with a demo account such as the Plus500 demo. They took demo trading seriously and treated their practice accounts like it were their live trading accounts. To them there was no such thing as play money. They practiced and practiced using a demo until they felt they were prepared for anything. Australian forex broker demo accounts are incredibly handy tools and an unlimited account such as that offered by Plus500 should be used until you can trade with your eyes closed. A demo account should always be a cornerstone of your Forex trading education.