Is it even possible for a broker to offer no spread demo account? I only found standard demo accounts so far.
Inputs needed.
You want to simulate a trading account as much as possible. If you dont have spreads the commissions will be very high.
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But why would you want a demo account with no spread? As in many brokers often, to impress traders provide very low spread in the demo account, however this might not be the case with their live account.
I am not clear what you really meant here, do you mean zero spread?
Yes zero spread. Many brokers provide zero spread on live accounts but not on Demo accounts.
A demo account is the most preferable way to learn forex trading perfectly and properly.
Generally if you a broker is offering a zero spread account then you will be paying some sort of monthly fee as they have to make money somehow.
If you open a standard broker account it will have spreads and you should trade a demo the same way to keep it as similar as possible…
I believe XM and XTB provide zero spread demo accounts. Though I haven’t tried them.
I am quite not grounded on the fact that we can have ‘perfect’ learning with a demo account. It does provide us some situations but they can’t be compared with real trading scenarios in any way. I assume it won’t prepare us for all circumstances in live trading except for the typical or more common ones. I would be clear that I am not an advanced trader, just sharing what I thought and experienced with my accounts on both XTB and Fxview. I always assumed demo experience on the interface provided by a specific broker to be different but in reality it’s not.
I learnt that strategies and emotions are way different with live trading when I had lost continuously in the initial days.
Again, I won’t say that demo didn’t help me at all, it gave me an idea of what forex might look like. Even trading with virtual cash won’t bring in much of your inner instincts and learning capabilities as you know the stuff you are losing/winning isn’t real.
Didn’t mean to contradict, only flashing my opinion.
Brokers might have low spreads but usually there commissions are also high. As said above even if you find a no spread demo account it might not be the case in live account with that broker.
There are for sure the variations. I believe it’s the same with leverage too.
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Even if you practice your strategy on a demo account with zero spread, I don’t think that would help. This is something unique to talk about. On a demo account you just have to hone your skills and improve your analysis by practicing, spread would be the extra charges that could be eliminated once you choose the right broker.
IG, Fxview are the ones you can try. I actually skipped their demo accounts and jumped straight on to live trading (not a wise thing to do but that anyway is a story for another time). From what I know the simulated conditions they offer are akin to their live trading environment. And as they provide 0 spreads on some pairs, surely you’ll find that on demo as well.
Very well stated it’s the emotional aspect that cant be replicated
Or a simulator
I doubt that I have heard anything like this before. I have seen spread going down to 0 or 1 but not stabilizing at 0.
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I agree because all the zero spread brokers mentioned here - XM, XTB, IG, FBS, Fxview - will not offer 0 spreads at all times and on all pairs. That is a possibility left only to highly volatile and active times. At other times a pip of 3 or 4 is also considered good.
Yes a spread of 5 pips can actually be good while trading in odd hours, considering that most brokers would actually be offering anywhere beyond 10. Come to think of it, when the liquidity in the market is less, how will any broker possibly provide 0 spreads, or even 1 or 2 for that matter. And speaking of brokers with fixed spreads or percentage based spreads, they can never go as low as 0 or 1.
0 spread demo accounts are no good, you’ll never get the real picture.
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I just created a demo account with fp markets, they are giving 0 pips on demo. Was actually more keen on using my live broker fxview or xtb for demo as well but i don’t think it is a possibility to create live and demo accounts with same brokers. Is it? My objective is test the interface otherwise I know demos can’t replicate real accounts.