When Is It Worth to Move From Demo to Live Accounts?

Every novice knows that a demo account is not just an opportunity to learn trading, but to take the path of a currency merchant, to gain experience, to try out various strategies and brokerages. Of course, available is a forex brokers rating, and it is possible to get acknowledged with reviews, for example, on Alpari, but only demo accounts allow trying quality of service in full, so to say. Trading on demo account one can learn basics of money management, can try to keep it and make it grow, can develop self discipline and eventually become a real trader.

as soon as you already have enough experience to be able to determine and foresee changes, apparently your deposit will be intact, and you will remain in the black.

Your styles and strategies are different, you are not fixated on just one system?

Live account: when to open it?

There always comes a time when you begin to trade successfully and come to understanding that you need to switch from demo account to trading for real, because you already make big profit, but it remains virtual. However, are you in fact ready to open a real money forex account and to risk your own money, or it just seems like that? To figure out how realistic is the probability of not losing your deposit and of keeping your emotions under control, you need to give some answers to yourself.

When do traders usually switch to live accounts?

Are you trading actively for a half a year or more?

Such a period is recommended by experienced traders: the market is unstable, changes take place on a regular basis, and therefore your system showing good profits on demo account may simply fail when switching to a live account. However, as soon as you already have enough experience to be able to determine and foresee changes, apparently your deposit will be intact, and you will remain in the black.

Your styles and strategies are different, you are not fixated on just one system?

This is a very important question; there’s a large number of systems and it is necessary to be clear if your choice is good or not. Will you be able to change your strategy, if necessary? Will you be able not to give up and search for a right trading method after a failure?

Is the majority of your transactions successful in the long run, and not just a couple of weeks?

In case most of the trades on your demo account leave you in the red, be in no haste to switch for a live forex account. Before doing that, make sure you already make mostly profitable trades; moreover, risking your own money is absolutely something else: other environment, other emotions. By the way, emotions have to be under constant control, otherwise trading results will be disastrous. In this work – yes, forex trading should be treated as work, and not play, only such attitude leads to success – it is a must to have a clear mind at all times.

Do you know how to work with the terminal? With indicators?

Do you know how to put stop-loss or take-profit?

Can you estimate volumes by trades in such a way that risk is equal to profit?

Do you have a winning strategy of your own?

If you are ready with this, you just have to get yourself a broker and start trading. Choosing a forex broker many newbies relate to reviews on Forex Club.  To choose the right company for comfortable and successful trading you need to spend quite a time. It is not worthy to make a choice based on advertisements only; get to know other traders’ opinions, read reviews on Forex MMCIS Group, examine forex ratings to see which brokers are on top today.

What interest rate differentials are for?

As it was widely expected, the Federal Reserve rose its benchmark interest rate by 25 basis points earlier this week, leaving it in a range between 1.50 percent and 1.75 percent...

TOP-9 mistakes of investors in Forex

Many investors choose a trading strategy for investing, based on the rating of its profitability, but this is not always the right decision. The rating...

Pivot points: what are they?

It happens every single time (unfortunately). We start reading about Forex stuff and we come across some new terms which we instantly forget...

Things to consider before choosing a forex broker

If you want to make in the Forex market, there are a series of basic steps you have to follow. Educate yourself, learn from your mistakes...

Basic Pairs Trading Characteristics

The two largest economic powers in the world are indisputably the European Union and the United States of America. The dollar, also called Greenback...

Ways to manage your stress when trading

If you are not the kind of trader that will rely on trading algorithms and robots, then you are probably going to be pretty much on your own. And believe me...

Robo advisors: are they going to fail you?

If you are a finances aficionado, then you’ve probably heard not once about Robo-Advisors. But just as many other terms in this industry, hearing...

Basic forex terms you should know

Margin, also known as margin trading, refers to the practice of using funds from a Forex broker to trade. In other words, the broker is loaning you...

Learn how to fix stops set wrong

Almost every time we talk about risk management, we emphasize the importance of using Stop Loss orders to limit potential losses and avoid trading disasters...