Should a trader learn to trade on a demo account?

Ted Capwell

In the 21st century, our society nevertheless formed a more or less adequate attitude to the ability to make money using the Internet. And this is a real breakthrough in the minds of many of our fellow citizens! Back in the 90s. of the last century, users of the World Wide Web could be divided into 3 large groups:

1. Those who understood the mechanism of profit generation for real business projects.

2. “Adult children”, despite their age, education and life experience, they continued to believe in a miracle and the opportunity to become a millionaire, without much effort and financial costs (a favorite category of online scammers).

3. And users for whom any proposal to improve their financial situation via the Internet was perceived as a deception of cunning scams (many of them were typical representatives of the previous group until they were deceived by the aforementioned scammers).

So, users of the World Wide Web already understand that the Internet is a mirror image of our society. There are no “fairy tales” here, there have not been and will not be, but in order to get a good income you need to work, invest your money in promising projects or in developing your own business.


Trading on demo account


Is online trading another cheat or a promising source of income?

Many users of the World Wide Web, making sure that the network really has interesting offers for those who want to improve their financial situation, have begun to search for such projects. But where to look for them, how to distinguish a fraudster from decent employers, where to start and whether start-up capital is needed for this? A list of issues of interest to all users who have decided to succeed on their own in this difficult field.

Without the appropriate education and experience, finding a promising job on the network is even more difficult than in real life. For example, a kvass seller (you only need a sanitary book) earns $ 10-15 a day, distributors of advertising booklets start at $ 8 / per day, and physically hardy guys can easily find work from $ 20 / per day.

It’s much harder to find similar offers on the web. To get money for watching ads and completing simple tasks is 2-3 dollars a day. How to solve this problem? One of the real options is to trade in the global financial market. Considering this type of earnings, without delving into the details, we can conclude that working on the web resources of brokerage companies is a common speculation, which even a student can handle. The task of the trader is to buy one of the available assets (currency, raw materials, securities, etc.) cheaper, and sell more expensive. Access to the market is provided by brokers who receive a certain reward for this.

In fact, not everything is so simple. The minimum list of requirements for a novice trader who decides to earn money by trading online includes:

• Proficiency in terminology. You should understand what trading is, what markets exist, how to replenish your account / withdraw financial resources, how the game for lowering / raising differs and much more.

• It is necessary to understand how the profit of the subjects of these tenders is formed, and what factors influence its size.

• A trader must learn to distinguish decent brokers from scams. And understand such categories as binary options, betting shops, “kitchen”, etc.

• A newbie should once and for all realize that online trading is not a casino, there are no such concepts as “luck”, “my day”, lucky / unlucky.

• And the main factor of this review is training in trading using demo accounts. How effective is it, is it worth it to use during trading, etc.?

Demo Account – “Pitfalls” of Free Online Trading Learning

Recently, accounts have been very popular among our fellow citizens, which allow us to practice learning all the details of online trading. A brokerage company (almost every decent broker website provides this opportunity) offers you to test your strengths, strategies, etc., without using real money. Bets are made using virtual currency. You do not lose anything, but at the same time gain, the most valuable thing for every trader is the experience of performing profitable trading operations.

It would seem that decent people in the future are counting on an honest, mutually beneficial business, well, what could be the catch in this proposal? But there is only one caveat. There is no charity, nobility and philanthropy in business. Unfortunately, the situation in question is no exception.

What is the catch? We list the most common situations when novice traders are given the opportunity to practice the ins and outs of online trading.

    1. Making deals with a demo account, the trader will see just a fabulous picture! Almost every transaction will be winning, and after 2-3 hours of trading, the trader will see an attractive amount on his account. So why not test your strength by making real bets? As a result, the “specialist” very quickly loses his own money, and sometimes not only personal “nest egg”, but also a substantial part of the family budget.

   2. Some beginners at some point cease to perceive large sums of money as something real (logically, they also use a demo account). Then, a similar attitude to financial assets remains during the conclusion of real transactions.

   3. Many owners of trading floors find more “subtle” ways to influence newcomers, which allows them to earn huge sums without nominally deceiving anyone.

Is everything so hopeless?

Fortunately, among well-known brokerage companies, there are resources of decent representatives of the business in question. Among them it is worth highlighting:

IQ Option;


• Other web resources of brokers, which traditionally occupy the top positions in the ranking of the best brokers in the world.

The presented review will not be complete, if not to mention the rapidly growing service Trading View. Its creators combined an effective resource that allows for a full technical analysis of global financial markets, as well as its subjects and other categories, with traditional social networks. It’s quite difficult to talk about all the important parameters of this service, it’s much easier to independently verify how it works by going through a simple registration procedure.


“General Risk Warning: Binary options and cryptocurrency trading carry a high level of risk and can result in the loss of all your funds.”