When Should You move from a Demo to a Live Forex Trading Account?

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Risks in Forex trading

Trading in the currency market is not a simple process. Before you begin trading fx, you will need to make sure you have all of your bases covered.

Before you trade with real money, you should know that it’s possible to lose all your money. This is why learning from the best forex trading strategies is paramount. You can develop your own trading plan before using a live forex trading account.

Forex trading account

One of the main things people do when they first start trading in the forex market is open a demo forex trading account. It allows you to get used to the trading environment and use different types of software without risking any real money. Many people will use a demo account for months or even years before eventually using a live forex trading account.

When to Move to A Live Forex Trading Account?

If you’re a newbie trading with forex and don’t have much experience, starting with a demo account may be wise. Plenty of free online account demo forex beginners like yourself can use to practice trading before risking any real money. This will allow you to get used to the platform, learn how it works, and test out different strategies without having any financial risk involved.

While many new forex traders are concerned with finding the right broker and the best forex trading account, some traders find themselves wondering if it’s time to move from demo trading to a live forex account.

There is no clear answer as to when you should do this. It depends on your level of experience, your knowledge on support and resistance levels and comfort with forex trading. Here are some concerns that may help you decide:

Do you know what you are doing?

If you’ve been trading on a demo forex account for some time and know the market’s ins and outs, you might be ready to move up in your account type. But if you’re unsure how much longer it will take before you become completely confident in your ability to make profitable trades, stick with the demo account until you feel more comfortable.

Keep reading, learning, and testing your trading strategies until you feel comfortable about losing. Yes, you read that right, losing is going to happen, trade until you understand and move forward when it happens. Forex Trading Blogs are useful when it comes to learning more about FX!

Do you have enough capital to start trading real money?

It can be challenging to trade forex with real money if you don’t have enough capital set aside for your trades. If this is the case for you, then start by saving more money. When the time comes, there won’t be any hesitation about moving into a real account because of a lack of funds.

How Much Money Do I Need to Open a Forex Trading Account?

The answer is easy, as much money as you are ready to lose. I know this sounds illogical but the first rule you should know about Forex is, never invest more than you can afford to lose. Be real and honest with yourself.

Moreover, to be profitable in Forex, you need to trade without pressure. Not being able to afford the money you invest will be a heavy weight on your shoulders, you don’t need that. Free yourself and ONLY deposit as much as you can afford to lose.

Know the differences between a demo and a live account

A demo account contains fake money, while a live forex account uses real money. The most significant difference is that you don’t have to worry about losing money when you trade on a forex demo platform. You can trade thousands of times and never lose money because it’s all fake cash.

A live trading platform works the same way as a demo account platform but with one key difference: It’s linked to an actual bank account and connected to the market. What this means is that when you place an order, the market will respond just like it would if you’d placed it with real money.

Have fully educated yourself

The best way to ensure that you know what you’re doing before trading with real money is by educating yourself on what Forex trading involves and how it works. This means learning about topics such as technical analysis, risk management, trading signals forex traders use, and much more. Follow other economic news websites too to be aware of what is happening in the market. Technical analysis is as important as following the sentiment of the market.

You can also follow YouTube accounts to hear about weekly events and movements, so that you can trade accordingly. IMGFX has a YouTube channel with weekly market analysis.

Are ready to be responsible for your actions

One of the main reasons why most people fail in forex trading is because they lack self-discipline when making decisions on their trades. The only way around this is if you have already taken responsibility for your actions by setting up stop losses and profit targets.

Do not worry about how to open a forex trading account, before you do that you need to know how to handle your emotions. You CAN lose all your money, the question is, will you?

How well can you handle your emotions

know how to manage your emotions in stressful situations. You must be able to control your emotions when things go wrong. No matter how successful you are with your trading strategy, if you’re unable to handle losses or frustrations, then it’s not yet time for you to trade with real money.

Alternatively you can find IBs and PAM traders that will help you trade.

Conclusion

Ask yourself: are you serious enough to move on to live accounts? If the answer is yes, then you could be ready. The most important thing is that you should feel confident and follow habits of successful traders. Use demo account forex brokers offer to practice trading ideas and learn as much as possible before dealing with real money.

Try some of the best-rated Forex trading brokers for beginners and new traders to find one suited to your needs. Ensure you know the risks involved in trading forex and that you can handle those risks before opening a live account. Also make sure that you have chosen between the different forex trading account types.

Then, go to your forex account login and good luck! You’re probably ready to trade “for real.”

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