Always choose a demo account for practising forex trading. In a demo account, you trade with virtual money, meaning your real money is not involved in any way. Hence it is also called paper trading. On the other hand, in a real account, you trade with your own real money.
Why would you like to put at risk your hard earned money? In a demo account, you can practise any type of strategy, any time, as many times as you like. But in your live account if your planning is wrong, you will lose money. Hence, always practise with a demo account.
Demo is great. Once you get a handful of trades under your belt, maybe even trading a system for some weeks and months, get that real money account going. It’s a different feeling when real money is on the line. Start small. Take some trades. See how you feel.
Demo account is good for practising trading before moving into a live account. Demo accounts teach you the market behaviour in depth and it is best for testing different strategies to find out which works the best for you. Not only does a demo account give you experience, but also they save you a lot of money. Every trader must practise in a demo account before moving to a real account.
You must choose to practise on a demo account first before trading on a real account to avoid losses and develop trading skills. Of course, when you gain some confidence to trade on a real account, you can start trading on a live account. At that time, for a while, even that part will remain in the “practice mode” because you will still be learning.
New traders should consider a demo account before they start trading on a live account to learn how the market works and work on their weak points. This will certainly help them make better profits in future as they will trade with tested trading strategies.