Introduction to Using a Spread Betting Demo Account

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.

How to Open a Demo MetaTrader Account?

You might have heard of many different MetaTrader programs that may have been successful to different people. However, you want something that suits you best, so you should try opening a demo version of a MetaTrader account so that you will know if it suits you, and test if your strategies might work on them. Should you be inactive on the account, it will expire after 20 days.

First, you will need to download the MetaTrader 4 terminal, where you will need to run the mt4setup.exe file. To install, you will first be asked for is the language used. Then, you will be introduced to the program and will be shown the end user license agreement. Read through thoroughly, and then tick the box that you agree upon the terms. After clicking Next, you will be asked for the location in which you would like to install the MetaTrader 4. By default, it would be under Programs, which would be where your other programs are installed. Next, choose the program group you would want. You can keep it at default. Clicking Next, you will be told that you are ready to install the program under the group you have chosen. If you have done the procedures correctly, you can click ‘Next’, and the installation will begin. However, if there are changes that need to be made on the earlier parts; click Back and make the necessary amendments.

When you launch the program, you will be asked for some information to start your account. The information you will be asked for is the general name, contact and address details, as well as the Forex details like the currency, leverage and deposit. With all that, you have opened your very own demo version of a MetaTrader account. You can now begin trying this demo.

Currency Demo Trading Versus Live Trading

Usually the first thing that a Forex Successful Trader tells you to do when you decide to join the community of Forex traders is to open a demo account. This way you get a quick feel right away for this foreign exchange market. Currency Demo Trading is the first real step in!

In addition to reading everything you can find on Forex start trading with a Forex demo account. It will teach you more than you need to know about Forex and much faster than any book or article.

A Forex demo account is your first hands-on experience as a trader in the Forex market. In addition to opening a demo account you need to get the proper training and education while you are learning and practicing, before opening a live account.

Most people learned how to swim by being thrown in a deep pool by their caring guardian and left alone for a while to figure it out and find their way out of the water. You might not be a big fan of a bootcamp strategy like that, but it has been done for centuries because it had great results. We usually do not know our ability and strength until we are pushed to learn them.

Go ahead pick a broker that will give you a free demo account and play with it. If you keep at it you will learn more in couple of days of trading than you would have by reading literature on it day and night for months. We learn better when we feel the pain, when we can see the results of our actions.

What you will do while trading in a demo account but not when you have a live account:

• enter and exit trades randomly

• pick currency pairs that sound good

• blow through your stop-loss level

• choose to trade big account sizes just because it’s not real money

• plunge into highly risky trades

What makes you change those strategies once you open a live account:

• you’re playing with your real money now

• emotions get involved

• things tend to move faster

• you pay attention to every move you make like a hawk – this is not a game anymore

If you ever played a boxing video game and think you can now box for real, you should probably get your head examined. Same goes for Forex demo account and the live account. The erratic behavior that might have worked for you in a demo account, will not work in a live one!

You have to learn to follow a Profit Protection System very closely while playing in your demo account and after you are disciplined enough to follow through with it, should you attempt a currency live trading account.

You have to remember that everything moves much faster in a live account and while a demo account is handled by a computer which opens and closes your deals almost the second you press the button, a live account does not work like that. There are a many different things that can slow down the entry and exit process which means you will not be opening your position at the exact desired level all the time and the same goes for the closing positions.

Do not be scared by all this, it is not always the case and by the time your Forex classroom trainer tells you that you are ready to open a live trading account, you will be more than ready to do so. Always trust a Forex Successful Trader, they will not tell you to do anything different from what they have been doing and you know that it worked for them.

Do not go after Junkie or Sucker Profits and you won’t have to worry about losing all your money in one quick move.

Trust yourself and trust your Profit Protection System. It will help you cut your losses short and keep your profits safe. But do the first step, align yourself with a Forex Successful Trader in and open a Currency Demo Trading Account now!