What is a Spread Demo Account?
Financial spread betting involves speculating on the financial markets and indices such as the FTSE 100, German DAX, or other markets such as commodities, securities, interest rates and government bonds.
In order to begin trading you’ll need to open an account at a spread betting platform and make a deposit. After this, you need to check the latest markets and prices, analyse which markets you think are going to move and then open a trade at the “Bid” price on offer.
Nowadays however, most online trading brokers will allow new customers to open a free Demo account instead. A Spread betting demo account simulated the online trading platform and gives you free virtual cash to trade with.
For example, you might be given £10,000 in virtual cash and this allows you to open/close trades, implement stop-losses and learn how financial trading works in general. You can also open a dual CFDs and FX demo account to go alongside this.
There are massive advantages when it comes to opening a demo spread betting account over a live account.
To begin with, a Demo account can be opened within minutes and is completely free. Unlike regular financial spread betting, you are trading on a simulated platform that mirrors the live trading platform. This means that you don’t have to fund your account or deal with the risks of trading for your first few weeks of trading.
Online Trading account customers can find demo accounts useful for getting comfortable with the spread betting platform and features. Most companies run their own software and independent platforms which means every company will be different. The ability to be acquainted with the software and learn how to use all the technical tools etc is a really helpful experience.
Finally, one of the most important tools to any customer is the technical analysis and trading tools available on the platform. Technical charts such as candle stick data allow you to check things such as MACDs, Bollinger Bands and TSIs. These are all essential formulas and indicators for helping you to analyse the historical and predict future movements of financial markets.
If you’re interested in taking financial trading/betting seriously than you can open a demo account in minutes. The majority of firms offer demo accounts (such as Capital Spreads, Tradefair, City Index) however for some reason FinSpreads currently does not. You also need to bear in mind that whilst Capital Spreads and Tradefair allow you to use the demo account indefinitely, at City Index there is a limited period of just 2 weeks before you need to upgrade or close it.