A demo trading account, which lets traders practise their strategies before using real cash, can help you start trading more effectively. ActivTrades offers a free demo that allows you to practise trading stocks, CFDs, and Forex.
It’s a popular approach among beginners who want to understand how to use a trading platform with no risk of losing money while they practise. Rather than diving straight into your first trades with real money, you can use a demo account to understand what skills you need to learn and improve.
This approach replicates real market conditions in a safe setting where newcomers can learn the ropes and work out their favourite strategies. Experienced users might want to open a demo account to try new ideas and strategies that they aren’t yet ready to use with real cash.
What Is a Demo Trading Account and How Does It Work?
A free demo trading account provides a practice area where users trade with no risk. This is done by letting you carry out trades with dummy funds.
It replicates live market conditions by using real-time pricing, giving accurate results similar to regular trading. However, the use of virtual funds ensures that this is simply a way of practising with no financial risk.
With ActivTrades’ trading demo option, you can access multiple assets, including stocks, Forex, and CFDs, to try different markets and strategies using dummy cash.
Why Use a Trading Demo Account Before Going Live?
Every new trader has to consider how they want to get started, with many opting for a demo trading platform as part of their initial learning curve. Demo account trading provides the following benefits:
- Risk-free testing. This is a simple way to test the trading process, to see how it works for you. You can try as many assets and strategies as you like, while you learn what you feel most comfortable with. No matter what happens, you can’t lose any money on the demo trades.
- Learning platform functionality. The use of tools such as stop-loss and take-profit is vital for successful trading. With a trading platform demo account, you will get to grips with these key functionalities. Rather than just reading about how these tools work, you’ll see for yourself the full process.
- Trying out strategies. Demo trading online is a recommended way to experiment with various strategies, such as day trading, scalping, and swing trading. Each of these approaches has different requirements that you might only be fully aware of when you make a trade and see how it works out.
- Checking out different markets. As you try markets like stocks, Forex, and CFDs, you can see how they work and which of them is right for you.
- Using risk management techniques. The likes of position sizing, stop-loss, and take-profit all make more sense when you can see what happens if you don’t use them well.
- Gaining confidence. Above all, the use of a demo account for trading helps you become more confident in this activity. While making trades on a platform and seeing the results, you will see how you progress and gain valuable new skills.
ActivTrades offers a free and easy-to-use demo trading account, available both on desktop and mobile devices.
With unlimited access duration, you can spend as long as you like trying out strategies and seeing what suits you best. Don’t dive into the world of real-money trading when the demo trading approach lets you get a much smoother introduction.
How to Open a Free CFD Trading Demo Account with ActivTrades
Start trading simply by opening a demo trading account with ActivTrades. This will only take a moment, giving you instant access to a range of assets and strategies without using real cash funds.
Follow these steps and you’ll be ready to place your first trades using dummy cash:
- A short registration process lets you open a new account by entering a few basic details.
- Choose the market you want to operate in next. With stocks, Forex, and CFDs among the options, you can start trading the assets that most appeal to you right away.
- Download the platform. You can use any of the popular trading platforms we offer, such as ActivTrader, TradingView, MT4, and MT5, to start your demo account trading experience.
- Use the mobile or desktop version. No matter what device you prefer to use, our demo accounts let you start trading wherever you go.
After completing these short steps, you can start trading. The next choice is which market to enter. This is where you might come across some terms you haven’t seen before.
Contract for difference (CFD) trading is one of the options where you use leverage while going long or short on the specified asset. Since leverage is involved and you don't own the underlying asset, demo trading offers a way to understand how it works and assess the risks compared to the possible benefits.
Practice Stock and Forex Strategies with a Demo Account
Stock trading is another approach that can be practised easily using a demo trading account. Whether you’re new to the market or already have some experience, this is a way to see how well your different strategies work in a trial setting but with real-world data.
A Forex trading demo account shows how to trade currency pairs without any risk. Try major pairs, minor pairs, and exotic pairs to see which approach gives you the best results.
This is another market where leverage is typically used, through CFDs and other vehicles. So, it’s important that you get to grips with the risks and potential volatility in a demo setting.
This is also an ideal way to try different strategies, such as using technical or fundamental analysis to make decisions on which trades to enter. No two trades are going to be the same, but the more exposure you get to different situations, the better.
Keep a record of your performance so that you have a clearer idea of what has and hasn’t worked. This will help you make a smoother transition to real-money trading once you’re ready for it.
How a Demo Trading Account Prepares You for Real Markets
A demo trading account gets you ready for trading in the real markets by steadily building your knowledge and skills. You will gain a variety of skills before you start trading with real money.
First, you will become familiar with the trading platform. Before you enter real trades, you’ll feel comfortable analysing the charts and using the tools on offer.
The emotional preparation provided by using a demo trading account is just as important. You will see how you react when you need to make fast decisions and stay cool while the market is moving quickly around you.
If you aren’t yet sure whether you could put on a suitable stop-loss or take-profit limit while the market is changing with every passing second, this is the best way of giving it a try.
Your best chance of success comes from creating solid strategies that you can put into practice. By testing them in a risk-free setting, you can refine them to focus on those that have worked for you.
The support you get from ActivTrades doesn’t just include the trading platform demo. We’re here to help you make the transition from demo trading to live trades.
You’ll find a wide range of educational resources and support that help you to make the most of your demo trades and then move on to make your first real-money trades with more confidence.
CFD Trading Demo Account FAQs
Can I Use a Demo Trading Account at Any Time?
Yes, there is no limit to the time you access your demo account at ActivTrades. This means that you can go back to try the demo option at any time, completing your initial learning curve and gaining more confidence.
How Do I Switch From a Free Demo Trading Account to a Live Account?
Once you deposit funds into your account, you can choose the live trading option. This allows you to use the same platforms, but with your own funds rather than virtual currency.
Can I Use the Same Strategies in Live Trading and Demo Trading Accounts?
Yes, demo account trading is carried out using exactly the same data and tools used for live trading. You can practise the strategies on a demo platform before using them with cash funds, although this isn’t a guarantee that the same strategies will always lead to winning trades.
Can I Lose Money Trying Demo Account Trading?
No, this approach uses virtual funds to avoid any risk of you losing real cash funds. In the same way, any gains you make are purely virtual, so you can treat your demo account trades simply as a learning experience.
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.
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