Do you enjoy live trading? Are you aware of the demo Forex account? Do you know the advantages of a demo account? Do you also want to know when you can jump to the live account from the demo? If yes, then go through this article. Here you will learn how to make sure when you should move from demo to live Forex trading. 

Forex trading nowadays has become the best option for making money. The best thing is you can trade anytime, from anywhere on this platform. If you are above 18 then you can participate in this platform and trade financially. Just make sure to have proper knowledge so you will not get in lost. 

The best thing about this platform is that it offers a free demo account to every individual. If you are a beginner, it is crucial to start trading on a demo account to get well-versed with the rules and guidelines of trading. Always remember that you will not lose or earn any money by playing with your demo account. It is offered to you to get handy over the options of trading. 

Let’s suppose, you understand everything by participating with your demo account, like spread betting, cost system, in short everything. Now, the main concern is when should move to live Forex from a demo account. Kindly read this post, you will be answered with all your queries regarding this topic. 

Forex Demo Account vs Live Trading Account

A Forex demo account is considered a great starting point for beginners. It allows them to practice trade and try different strategies without risking their money.

On the other hand, a live trade account introduces you to the real financial markets, where you trade using real money. Unlike in a demo account, your money is at stake when trading from a live account.

The good thing about a demo account is that it is free of any consequences. Even if you make a mistake, it won’t make you lose any money. But things are different when you are trading from a live account. One wrong decision and you end up losing all your money.

Demo trading accounts are meant for practice. But for real-time action, a live trading account is where you go. As a newbie, it’s completely fine to start your trading journey with a demo account. Once you gain the confidence to trade for real, you can switch to live trade.

How Long Should You Use a Demo Trade Account?

Well, there’s no definite answer to this. The duration will vary from person to person. The quicker you learn to trade, the quicker you move to a live trading account.

According to experts, most traders take a month or two to get familiar with trading practices. After that, they move to a live trading platform.

The problem arises when a trader spends too little or too much time on demo accounts. Practicing via a demo account is great, but it won’t bring you any profits. To turn your investments into gains, you need to open a live trading account.

The decision to switch to a live trading account can be difficult for a beginner. Before taking any decision, you should go through the below checklist.

Signs That You Are Ready To Open A Live Trading Account

Here are the signs that will help you decide whether or not you are ready for live trading.

You Feel Confident with Your Trading Platform

It is important to familiarise yourself with the trading platform before creating a live trading account and investing your money. Diving right into live trading can be frustrating as you wouldn’t know how to enter or exit a trade.

This is the reason that most forex experts prefer demo accounts. It helps them get an idea about the platform and whether it is suitable for them or not. They also start a demo account with the broker that they intend to use for live trading.

You Have an Effective Trading Plan in Place

In live trading, you deal with real trades and invest real money. Therefore, there’s no room for mistakes. Before getting started, make sure that you have a full-proof trading plan in place.

You should prepare your trading plans and strategies while using a demo account. This will allow you to test out your plans and see how effective they are. You should tweak and adjust your plan until it starts working.

Your Demo Account is Successful

If you are not being successful with your demo account, it means you won’t do great with a live trading account. Make a switch only when you are ready.

You should move to a live Forex account only when you are 70% successful on your trades. Until then, you should practice more and learn new strategies.

Some individuals thought it can be enough if they spent more than 3 months playing with the demo account. This perception is completely wrong. If you also think such type of things then kindly do not. It is not a matter of how many days you spent on your demo account, it’s all about how much you know. 

If you are good enough at running your demo account in 1 month then you can move to live forex then only, but if you are not well-versed with the things after spending 5 months then it is recommended to give some more time to your account and then think of jumping to live one. 

You Have Accumulated Enough Capital

Forex trading is an expensive affair. It requires a good amount of capital to get started. However, you shouldn’t invest more than you can afford.

When you know you have collected enough capital and learned your trading lessons, you can make the big transition. You don’t need to invest a large sum in your first trade. Start small and increase your investments gradually.

Forex trading is as interesting as it sounds. As a newcomer, you shouldn’t ignore the importance of a demo account. But at the same time, you should prepare yourself to get started with live trading. After all, that’s the goal you are aiming for.