What is a Metatrader 4 Demo Account?

An MT4 demo account is like playing Monopoly. You have all the real streets and areas in front of you, but you can buy or purchase them only with fake money. 

In this case, a Demo Account has the same construction. It gives you all the information you need, helps you find everything, try new or old techniques and ensure you are confident before getting out into the real world. 

No money at risk is what a Demo account provides you. It gives you the opportunity to test trading strategies and test your Expert Advisor (EA). It generally allows you to familiarise yourself with the platform, around the comfort of having virtual money and no real money instead.

MetaTrader 4 demo account simulates live trading conditions on the MetaTrader 4 platform but with no money at stake. Despite the funds being virtual, the trader can come across many features. When a trader is ready to open Demo account comes complete with a variety of features MT4 live account offers.

There is a library of indicators with mathematical tools analysing the price. 

Are you afraid of getting started? You don't have to because MT4 Demo adds to your account up to virtual $100,000 (USD) to experiment, test your skills and strategies with no risk at all. 

So, an MT4 Demo account is a great place to:

1. Enhance your knowledge about the platform's features

2. Experiment with strategies on your trading 

3. Learn the basics of trading 

Every trader is allowed to use the MT4 Demo account. Experienced traders or beginners have the place to practise and suits everyone. This is the reason why it is the most popular trading platform globally.

Find out all the benefits of an MT4 Demo account with FP Markets and explore the variety of tools it offers. From charting tools to technical indicators, real-time charts, market news and insights, and a suite of automated trading availabilities. FP Market partnered with the top forex liquidity providers for deep liquidity, along with real-time price quotes for a wide range of tradable instruments. Traders can take advantage of FP Market's fast execution speed by using Expert Advisors (EAs).

What Are the Benefits of using an MT4 Demo Account?

When you begin your journey in the Foreign exchange (forex) market, it is essential to start out with a demo account. It is a simple way to guarantee a foolproof way to get acquainted with the Forex market with zero risk probability. 

We found 5 important benefits that will help you better understand why to open a Demo trading account.

1. You do not risk your capital because you learn the ropes. 

Your own Forex trading sandbox is the demo account, giving you the availability to improve the skills and knowledge you need for effective trading and guiding you through unfamiliar territory. After that, having acquired all the important information, you will feel ready to get the hang of trading on your own. 

2. You get familiarised with the trading platform

The globally-known MetaTrader4 platform provides you with various tools to make the most out of your Forex trading experience. You can learn the specifics of this popular platform by practising on a demo account. Additionally, you can learn how to best employ its various tools to your advantage, take a trade and how to close it risk-free. 

3. You manage your emotions and understand trading psychology

The range of emotions coming out from Forex trading is wide. Forex trading involves a lot of complicated emotions. There are plenty of emotions that will occur through your learning-trading process. You may feel euphoria or frustration, or doubt sometimes. Every trader needs to understand the dominant feeling each time. The next step is to learn how to control it before venturing out into the live trading world. Traders must familiarise themselves with these emotions because they can be detrimental to their trading and mental health.

4. You create and test your own Forex trading strategies.

As time passes and you spend more time trading through the Demo account, you will learn more about indicators and multiple trading strategies. You will start to discover more about your trading habits, preferences, and patterns. Using this fresh gained information will help you develop your own Forex trading strategy. Then you will be able to apply it to ensure its viability in the long term and in real-time market conditions.

5. You can find the Forex trading routine that suit you more

When trading forex, you want your trading routine to be functional. The forex market is available 24 hours a day, 5 days a week, for traders to choose their own Forex trading routine. 

Try to estimate your peak performance hours, to narrow your trading down to the times when you are most focused. Avoiding poor trading decisions will lead you to better performance. 

It is an educational tool that will allow you to practice your new trading strategies. Whether you decide on technical analysis or fundamental analysis, the demo account is the right place to sharpen your skills and experience market conditions before entering into a real account.

Additionally, traders can enjoy more trading through easy access on mobile apps. 

They can choose Android or iOS and follow global markets in real-time. Trading cryptocurrencies such as Bitcoin or Ethereum or currency pairs can be done through their pocket. 

What are the features of an MT4 Demo Account?

Each Platform Is Different

Many forex brokers provide numerous platforms. MetaTrader 4 and MetaTrader 5 are the most popular in the financial industry. Moreover, many brokers offer additional platforms that may be proprietary to the broker. That means that the platfοrm may nοt be available frοm οther brοkers. 

Each of these additional platforms being provided may function and look slightly different, but they have almost common features. These features include charts, forex quotes and prices, news feeds, technical analysis tools, drawing tools, trade history, and functionality for buying and selling currencies. 

Furthermore, some platforms may have more features than others. For example, some have integrated fundamental analysis tools. These tools are important for a long-term trader, but it is not for someone who wants to be a short-term trader. 

MT4 Demo Account and its features

  • Access $100,000 (USD) of virtual money to experiment and get comfortable with the platform and the markets.

  • Access to MetaTrader market and MQL4 community

  • MT4 demo is available on tablet, desktop or mobile. Compatible with iOS, Android and Mac devices

  • Trading in a live trading environment which delivers live market prices.

  • Experiment with automatic trading strategies (Expert Advisors).

  • Use free MT4 indicators, add-ons and tools, just like a live account.

  • Familiarise yourself with technical analysis before opening a live account—customisable interface, including colours of technical indicators.

  • One-click trading

  • Live price streaming on live accounts and Demo accounts 128-bits encryption for secure trading.

  • Customisable alerts

It is impοrtant tο learn tο use the fοrex platfοrm's features befοre you start trading on it. It is the best way to practice, spend time, improve your skill as a trader and decrease the high level of risk.

How to open an MT4 Demo Account with FP Markets

The process to open an account with FP Markets is simple. The website will guide you step by step in order to choose whether you want to sign up using your Google, Facebook, or another email account. Thereafter you will need to fill out a short form and wait for the verification email with your login information.

You will need to have either a PC or mobile device in order to download and install the Metatrader 4 trading platform. After receiving your login information, open the account by clicking on the 'File' menu to log in. 

Now you are in the world of the MT4 platform. In the beginning, this may look to you daunting but keep exploring. Familiarise yourself with all the features available. To begin your trip, you will be provided with the amount of $100,000 (USD) virtual balance. In addition, the charts and prices will be displayed in real-time, therefore providing you with an in-depth experience. 

Trading tools can be found by clicking on the 'Insert' tab. Will then present you with features such as indicators and trend lines.

For more articles regarding technical analysis, go to FP Markets educational section on the website. The learning process is unlimited, so try to gain as much knowledge you can before placing a trade. Take advantage of the demo account and acquire practical trading skills. Educate yourself with these tools and drive for successful trading. 

What Is The Difference Between an MT4 Demo Account and an MT4 Live Account? 

Live accounts vs Demo accounts

Live trading accοunts enable retail clients tο trade many asset classes with real money. This slight variation does create a distinct difference between the two accounts. There are much fewer emotions regarding trades through a demo account. When you use virtual money, it is easier to keep going if losses occur. This may lead to clients developing negative habits as there are no consequences.

Another factor that sets apart the two accounts is that the demo trading is not completely the same as live trading conditions. In demo accounts, you are not able to fully replicate the liquidity of live trading during major news events or when there is radical price movement in the markets. For this reason, it may be worthwhile testing the live platform with smaller sized positions before proceeding to trade as per the initial outlined strategy. 

Here are some more differences 

  • Trades on MT4 Demo are not real. No mοney is at risk; yοu are trading with virtual funds.

  • Dividend adjustments do not adjust demo trades, but rollover charges (swaps) will be the same as a live account.

  • Slippage caused by out-of-hours or volatile price movements are not applied on demo accounts.

  • Demo's account leverage restrictions will be the same as a live account.

  • Trades will not get refused due to size (leverage) or price. However, trades will be discarded if you have insufficient funds, just like trading a live account.

  • Chart packages on the MT4 demo account are with no costs.

  • Trades will be closed on Demo if your virtual money does not cover the required margin level.

MT4 Demo accounts offer you the opportunity to test the platform before investing real money. It is a gamified version of real-world trading, and there is nothing to lose. There are millions of traders in the MT4 community using this platform daily. 

Why Open An MT4 Demo Account

As we mentioned above, it is critical to gain experience in order to create a lucrative path. Working on a forex demo account provides you with Forex trading experience using all the trading features. You can trade in real-time and learn how to analyse the markets using technical indicators without risking your money. 

Demo accounts can provide benefits that allow the trader to become familiar with the software and understand how the markets work. 

Practice only makes you better. We recommend practising on a demo account for approximately 5 to 6 months if you really want to learn and be profitable in the long run. Once you become consistent in profit-generating on a demo account, then you should think of going live.

The Bottom Line

Even after you decide to trade live, demo trading can be valuable. Many successful traders will test strategies in a practice account before trying them out with real money. Demo trading does not guarantee profits in a live account. 

However, many traders agree that failure to succeed in a demo account will almost certainly lead to failure in real life. That is why demo trading is vital to the growth and development of forex traders.

It is important to familiarise yourself with the trading platform before opening a live account by testing the demo platform. Conduct thorough research to ensure your broker has all the services you require and review all the legal documents before signing up.

Finally, remember to constantly apply yourself by studying the markets every day and never invest more money than you can afford to lose.

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