Forex is considered one of the most profitable and rewarding trading models. For a trader, the dream is to become a professional forex trader and earn thousands of dollars in a day. However, the truth is that a trustworthy forex trader requires a long-term approach, patience and lots of knowledge.
The most fundamental difference between a Forex demo and a real account is that a demo account is a test account where you cannot make trades and earn money. But, once you decide to become a professional trader, you will need to buy a real account. Below we are going to discuss five significant differences between forex demos and real accounts:
1. You cannot earn money on a demo account
You can make small trades, test the market, make money back and test the product on a demo account. But once you decide to become a professional forex trader, you need a real account to make significant money. The forex brokers in south africa are trusted ones.
2. The commission is high
Some brokerages offer a low commission when you open your demo account. But, once you sign up as a professional trader, you will have to pay a significant commission. For example, in Interactive Brokers, you have to pay $10 per trade when you open a real account.
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You can create a fake demo account and test the market for a couple of weeks. But if you want to become a professional trader, you will need to open a real account. This is because forex is a risky business.
4. A demo account has a limited number of users
As a professional trader, you will have to deal with a limited number of clients who can test your trades. This means that you will have to deal with limited clients and a limited number of orders.
5. A demo account is a free trial
Even though a demo account is a real account, it is a free account, and you are not paying a commission to the brokerage. For example, when testing the currency pair on a demo account, you don’t have to pay any commission, and you can place up to a thousand dollars to test the market. Once you sign up as a professional trader, the commission is a crucial cost factor.
These are just fundamental differences between demo accounts and real accounts at the end of the day. When you decide to become a professional trader, you need a real account to put your money on the line to make it a reality.
The difference between demo and real accounts is not easy to identify, but it is crucial for a trader who wants to become a professional forex trader. If you want to make real profits, you need a real account to put your money and risk. However, for those who do not want to make a career in Forex trading, a demo account is the best option and one of the best ways to test the market and get a small income.
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