As a beginner who just started trading, it is very important to know and learn about some of the platforms that are often used in trading. Most of the world’s brokers use the MetaTrader 4 charting software or also known as MT4. With this MT4 software, traders can see price movements, analyze, and order transactions on the platform.
The advantage of MT4 compared to other software is that it has automated trading development. Demo accounts are also available on the Metatrader 4 platform, one of which is to perform a pip value calculator calculation before making a real trade.
Benefits of Using a Demo Account MT4
For beginners, it may be quicker and simpler to get started with a demo account. Apart from the zero cost, it comes with several important benefits. At the same time, it’s not perfect given some minor flaws.
Excess:
- Familiarize yourself with MT4 – amateurs may not have the haziest idea of how MetaTrader 4. Choosing a demo account will make it easier to test the platform and try out all its features. Traders will be able to understand and identify the different order types, how they are executed within the platform, and so on.
- Test new strategies – with a demo account you can apply any strategy you like, as you will only lose virtual money in case of failure. This provides many opportunities to try different methods in real market conditions.
- Refine old strategies – if you prefer to use one technique, a free account will allow you to sharpen your skills and perfect your old strategies.
- Keep emotions under control – lack of emotional control is the most common mistake for most beginners. Free trading will help you understand the causes of these emotions and prevent them from interfering with your trading strategy.
Deficiency:
When trading with virtual money, some traders underestimate the importance of risk management. You know you have nothing to lose. This encourages beginners to make reckless decisions. A demo account can never replicate the true feeling when a trader loses.
Apart from some minor drawbacks, using the best forex demo account is definitely a wise decision before opening a real one.
