Brokers often offer users two fundamental types of accounts to trade in the forex market: 'Demo' and 'Live'. Let's look at the pros and cons of each.
The primary benefit of a demo account is that it is funded with 'fake' money. This is perfect for new traders to learn to mark charts and place trades to see how they do without the risk of real capital.
The demo account is also perfect for testing Expert Advisors. A user can adjust the EA's settings until they get the desired trading style they are looking for.
Auvoria Prime strongly suggests that all new traders start with a demo account.
The only cons with a demo account are that a person may not take it as seriously since it is not real money. Additionally, trades in a demo account do not get placed in the real market, so there are no spreads, commissions, or other fees, making the trading results look better than they would be in the live markets.
A live account is funded with real capital so that real profits can be secured. It is a different psychological experience than trading with a demo account, so it is always good for a new trader to use mini pairs if they are available.
It's also a common practice to fund a live account with a few hundred dollars to test a new Expert Advisor strategy.
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