A demo account is an account offered by trading brokers which enables you to trade and participate in financial markets under real market prices and conditions but using virtual money.
This is a risk way of testing new trading strategies or simply getting familiar with the markets you want to trade or participate in without risk your real money. Demo accounts will give you access to all the major markets just as with a real money trading account but trading brokers may vary in terms of which markets they provide live data on demo accounts.
Some brokers offer additional features that come with demo accounts such as free education material and trading seminars & webinars. Financial markets trading using a demo account can be done through web based platforms, mobile apps and trading strategies can be automated and put to test without you having to monitor the market all the time.
It is important to note that trades made through demo trading may not be subject to factors such as slippage, interest and dividend adjustments, or out of hours price movements. These factors will impact your trading results when trading a live account.
Disclaimer – Futures, CFD, Margined Foreign Exchange trading, Warrants, Options and Spread Betting all carry a high level of risk to your capital. Only speculate with money you can afford to lose. Futures, CFD, Margined Foreign Exchange trading and Spread Betting may not be suitable for all customers, therefore ensure you fully understand the risks involved and seek independent financial advice if necessary.
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