I’ve had suggestions that it is more beneficial trading a cent account than a demo account, since it gives a more realistic experience of live trading with minimal risk. What do you guys think?
Cent account is a good way to start trading in real account for beginner, but I think as beginner also still need to prepare their skill through demo account, make sure in demo account learn seriously, because sometimes on demo only trading based on luck and not really to learn how to manage money in the market, while relying on luck will never come consistently
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Basically, a number of new traders don’t get enough concentrations in demo; that’s why cent account suggested by many traders! Both are beneficial, just depend on your mental condition.
Demo is mainly good for practice the program you trade with, but seiorusly you can practice with real account. Start with as little as you can afford to loose 
Actually, the trader should not choose betweet theese two account types as “either…or…”. Both they have different features and purpose. Cent account gives possibility to try trading skills without serious risk, while demo is good to get first trading experience and then test new ideas. So, the trader should use them both.
For example, the newbie trader could use the following approach:
- Demo trading to get first experience and general understanding of the markets.
- Back testing (with the help of tools like Tradingview or Forex Tester, or something like that) to check strategies and form rules.
- Demo trading again to check the strategy.
- Cent Account trading to add psychological issues.
- Real account trading.
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Thanks guys your insight is invaluable.
Hi @Crownempire, I’m new to the forum but have a little input to share. I traded a demo account for 2 months before going live.
At first, with the demo account I just sold when the price “looked” high and sold on the opposite. I only stayed in trades for a minute to around twenty minutes and it worked great.
BUT then the market of the pair I’d been trading went into consolidation (I didn’t even know what that was at the time) and I lost most of my balance. I done the stupid thing and just reset my demo balance and went at it in the same manner and increased this balance again. RIGHT I thought, time for a real account. I went ahead and lost my whole balance in a month!
Moral of the story is that the psychology of trading demo and the psychology of trading real are completely different. I am back to a demo account and have been for the last 3 months. Can’t see me opening another live for another few months at least. Stick to the demo, trial different strategies in different markets. When you’re confidence is solid then maybe try a live account with small positions to start.
I’ve adopted the a new goal set. I want to just make sure I gain PIPS not profit. That way I can concentrate on success instead of greed. This has drastically changed my approach to trading and I think, my ability to stay in the game.
I’m sure you’ll get lots of help along the way on here and I hope you enjoy learning as much as I do.
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Thank you for your input.
From my exp, demo account is quite stable but live account could get some problems in real trading like slipped, spike, slow execution,… So you must be careful.
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Yes it does, but you need to learn well before you trade that cent account else the experience would not be a favorable one. The point with demo is to get you familiar with the market. I understand why you feel cent live account is better; because you want to learn under real market conditions. Let me suggest a no deposit bonus offered by Forexchief broker; it is a $100 bonus, you don’t need to risk your own money to practice on a live account with this option.
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to be honest, I’m also confused by these 2 options. Since I’ve started this business. I also was looking for information to add to my knowledge.
Thank you for this input.
Get accustomed to rough pricing if you want reliability and moderated risk. Over-trading leads to stop triggers and slippage eventually on the intra-day; a huge risk in an accounts sustainability. Demo account has rough but accurate enough pricing to learn just as well as live.
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As far as it is the question of which one is better we can consider the fact that both have different features and importance. If you are a beginner, it is the demo account which can help you to be prepared for the market situations. Again, cent account can be used when you have created an image of trading ideas in your minds with demo practices.
Demo account is a practice account where you can learn how to trade without any chances of losing money. If you spend some time on the demo account and gain some profit there then you can move on to a live account. Confidence is the key to success here on the forex market.
demo is a place where we can see the performance of real trading but there is no real money at all , for that reason our emotions not work that time , but in cent account no way to avoid semitones, so be carefully , try to control any bad habit by regular practice.
Thank you@NeilKruger
Without a doubt the experience is more beneficial to your growth as a trader.
Because one is fake and the other is real.
How do you feel about trading live and transitioning from demo? does it raise some emotion in you? Then you have just had a taste of the difference.
If you are concerned about losing money then you need to deal with that and there is no better way to do it than to trade for real with a cent (micro lots) account.
If you know how to operate the platform comfortably, particularly for opening, closing and modifying deals. If you have a rough idea about what you are doing in terms of when to buy or sell, Then you should stop wasting time on a demo.
Waiting to be profitable first is a big waste of time.
The real learning starts when you are trading with real money.
You will (most probably) blow the first account. We have all done it no matter how long we spent on the demo.
Consider this as a cost towards your education. You cant learn this business for free. No way.
Just my opinion.
Good luck.