Moving from a forex demo account to a live trading account can be one of the most challenging steps in any trader's journey. It's not uncommon for traders to remain on a demo account for months, never quite feeling ready to make a leap. Here are five reasons you should jump into the deep end and ditch forex demo accounts for good.
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Why It's Time to Ditch Forex Demo Accounts
Reason #1: Don't waste time and money on forex trading challenges
Forex trading challenges might sound like a good idea, but it's easy to see why they're not. They are notoriously difficult – and expensive. The prospect of paying a $250+ brokerage fee just to get going seems ludicrous.
Popular trading challenges focus on placing trades at specific times and under pressure. This incentivizes traders to make high-risk, aggressive strategies that may be more exciting but far less profitable. It's time to ditch trading challenges on forex demo accounts and open your live account today.
You can spend weeks learning more about an industry, only to be tested on a small part of it. Brokers and traders create forex challenges with a common goal. They want to show you just enough to swell your head and make you think that you will make money right away. In reality, you can end up losing a lot of money as a result of inexperience.
Truth be told, you SHOULD have been trading a live account for months, if not years — at least to build up the experience and exposure. Save your money and invest your time monitoring forex trading signals instead of perfecting your demo account trade skills.
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Reason #2: Why trade on demo when you can get instant funding?
For too long, traders have been constrained by a process that involves forex demo accounts, approval processes, and delayed funding. BluFX has removed those barriers and given traders control over their investment journeys. There are no demo challenge requirements, no minimum trading requirements, and a fully-funded account - so you can start trading straight away (yes, really).
BluFX offers fully-funded forex accounts for any experience level, with fixed, affordable monthly subscription prices. Our forex trading platform is straightforward to use. There are no hidden costs or complexities to worry about. And when you're ready to trade, we can have your account activated and funded the same day.
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Reason #3: Don’t settle for simulation - get used to a real trading environment
Forex demo accounts are a great way to practice and learn about trading. But it's important to note that a forex demo account is just that — a demo. It's not a representation of the actual market. Trading this way comes with no guarantees and only little room for error.
Forget the novelty. For forex traders, a demo account is where most learn the bad habits that stick with them forever. Safety nets like fixed spreads and no real financial pressure can be more toxic than you think. Experimenting on a demo account without knowing what it takes to succeed in the wild is like trying to learn a new language from a textbook – it simply won't happen!
Forex demo accounts are not real trading. No traders can build up an experience with a simulated set of market conditions. Real trades with actual risk positions are the only way to become a better trader!
Reason #4: A demo account won't help you improve your psychological profile as a trader
There is a sense of security in having all trades simulated and monitored by a broker. When you trade a forex demo account, you are faced with none of the challenges a live account brings. There is no real money on the line because it isn't your money. Additionally, there is no real risk because there is no threat to your capital.
No matter what happens with a trade on a demo account, you won't lose anything because it isn't real money. In short, the demo account experience is all too tame and non-threatening in comparison. It simply cannot simulate the feeling of having money on the line.
You will experience some horrid emotions with a real account, and you need to be ready for them. Emotions like fear and doubt are normal, even healthy, but you must manage and control them. In order to get prepared to make your first live trade, a forex demo account is not going to help you at all. It's time to get your hands dirty with real money trading.