Starting out on a new adventure of trading may seem a bit scary for new investors. For this reason many renowned brokerage companies offer free demo account or it is also called practice account, which is free of charge. There are two major types of demo account:
Demo Account Types:
Quick free demo, which does not require registration or personal information and with the help of which trading can be done on the front page of the website; registration online trading practice account, which requires provision of personal data and assistance of a dedicated manager, who will help you start trading and in some time move over to a real trading account.
Beware if a broker requests a deposit prior to allowing you to start trading using your trading demo account. These are unfair marketing tactics and you are sure to find another firm, which offers trial accounts completely free of charge.
With registration demo you will be able to track your profit/loss margin, receive expert advice and have access to education videos, e-books and other learning tools.
It is worth mentioning that demo account does not differ from real accounts at all, except for the profits are not withdrawable. You receive real-time price quotes, charting tools and options trading such as Up/Down, Touch/NoTouch and others to aid you in investing. You can trade all the same assets that regulars do, such as currencies, stocks, indices and commodities.
To sum it up, stemming from experience, free demo account is quite useful for a first trading week, but if you keep on winning in the long run, you can just loose out on the possible income you could have had with a real account. So an advice to you would be to start off with a trial session and as soon as you feel comfortable enough in this financial market do move on to real investments.
For more information on demo and our recommend brokers, please, have a look at the Compare Brokers section of our website, where the most comprehensive and up-to-date information can be found not only about trials, but bonuses and regulations, as well.