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A Forex Trading Challenge vs A Live Account

Posted by BluFX


Forex Trading Challenges

There are many reasons a live account is better than a demo account. When you trade with your own money, you will think about things differently than when you have nothing to lose. So - when choosing between a forex trading challenge on demo versus a live fully funded forex account, which should you pick? We weigh up the pros and cons here…

Read: How to Find Forex Strategies to Suit Your Day Job ⟶

A Forex Trading Challenge vs A Live Account: Which is Right for You?

Make real profits

A live trading account is the best place traders can put their skills to the test and start making real profits. It is a great learning environment for new traders, allowing you to make the same trades you would have with a demo account. However, when using a live account, your trades are being made in real-time using real market prices - and real profits. This gives you a realistic experience of what trading the markets is really like.

Unlike forex trading challenge demo accounts that sometimes use historical data, a live trading account uses real-time price data. By practicing with market prices, traders can test their strategies while reaping the rewards. It’s a win-win!

It’s time to ditch demo once and for all. See 4 Reasons to Ditch Demo Accounts here>>

Trade the real market - no forex trading challenge simulations

You want to make money, or you wouldn't be here. No simulation takes the place of the real thing! A live account lets you pinch pennies and make pence...the kind of cash that will buy a vacation, a new flat-screen TV, or a little more comfy retirement. With a demo, the account wins – not you.

With real-time market data, you can confidently learn to trade the same instruments that professional traders worldwide use. There are no simulations, no forex demo challenges - just simple, clean charts that give you direct access to live price action. Trade with confidence knowing that you're working on the same chart as experienced professionals; come prepared with your strategies and see your skills improve.

A forex trading challenge is traditionally designed to show you what could happen in forex investing when you use certain indicators and strategies in the forex market. However, these forex trading challenges do not account for your mistakes, market unpredictability, or emotional state.

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Learn to manage your trading psychology in a real environment

Real trading should be a breeze, right? Well, not exactly. You can run into many problems that aren't apparent when using online forex trading practice accounts. The solution is a live forex account. After trading on a live account for a while, you'll find the answers to your questions and become confident in your trading abilities. In other words, you'll develop strong trading psychology.

For a new trader, trading a demo account can be the right place for wrong things. A live account with a regulated broker will allow traders to perform realistic trades and take advantage of the markets. The psychology of trading while using real money is not the same while trading with a demo account, which can lead to costly mistakes, or even worse, can discourage you from trading at all.

In the long run, having a live account will help you master your emotional side while trading, resulting in more gains from successful trades and fewer losses from few mistakes.

Are you in a good place to trade? See our ultimate trading checklist here>>

The fear of losing real money encourages more discipline

When you use a demo account, or you complete a forex trading challenge, you don't have to worry about losing money. However, since there's no risk of losing any real money, it often leads traders to think they're infallible and that there are no potential risks involved in whatever it is they're doing.

The reality is that none of us are immune to the possibility of making mistakes or losing trades due to our actions or something that we failed to do. The fear of losing real money encourages more discipline, which translates into better decision-making, better risk management, and lower risk generally taken.

Let's face it. No trader wants to lose real money. That can get you into immediate trouble in live trading because of poor timing and often over-trading. A better approach is to build a new mindset based on real experiences.

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A live account offers greater flexibility

A live trading account offers you the ability to use all of the tools and software you wish. With a live account, you can learn the market within the limits of your portfolio, allowing you to make real money trading decisions based on genuine risk. Live accounts also give you the flexibility to trade in any currency pair, market, or product (Forex, commodities, or stock indices).

Because a live account will give you 24/5 access to the markets and doesn't restrict your ability to trade, it's better than a demo or a forex trading challenge. It truly does feel like a different ball game playing with real money. On a live account, you have the freedom to manage your risk by setting a loss limit and a profit target. You can also adapt to the rapidly changing currency markets using various technical analysis tools. Forex demos are okay for testing out various trading strategies, but they remove all of the fun and intensity of the real market.

Read 5 Reasons to Join BluFX ⟶

Tags: Trading Tips

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