The CleanFinancial.com guide to Demo accounts.
- Companies that Offer Demo Accounts
- There is No Risk
- Make Yourself at Home
- Try Before You Trade
- Burn Out Your Demo Account?
- How Long Does it Take to Open a Demo Account?
- How Long Does the Demo Account Last?
- The Downside of a Demo Account
Life can be complicated, and this is certainly true in the volatile world of spread betting and CFD trading.
Therefore, the following firms let you open a free demo account where you can practice your trading:
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Why Use a Demo Account?
There is No Risk
Instead of risking your own money, the companies listed above offer free Demo Accounts where you can spread bet and/or trade CFDs with virtual money.
Make Yourself at Home
Because the demo accounts give you access to a platform that is often identical, or almost identical, to the real platform, you can gain a reasonable understanding of the leverage, trading orders, real-time charts and many of the other features on your chosen platform.
Should you then go on to apply for a real money account, you will already be familiar with the tools and layout.
Try Before You Trade
Spread betting and CFD trading carry a high level of risk and are certainly not for everyone.
If you are one of those people then, according to City Index they “would much prefer it if you found out the easy and risk-free way, rather than the difficult and expensive way.
“It makes sense to test spread betting and CFD trading in a controlled environment before you commit a penny of your own funds towards them”.
Burn Out Your Demo Account?
Not a problem, that’s what it’s there for. No need to open a real money account just yet.
If you burn through the £10,000 of virtual funds that Financial Spreads, Capital Spreads and InterTrader put in their Demo Accounts then you can just open a new one.
These firms will let you do this multiple times.
How Long Does it Take to Open a Demo Account?
It’s quick and easy to open a practice account. The sign-up form for the 3 firms listed above takes less than one minute to fill in.
Once you have filled it in, they then send you an email to confirm your email address and log-in details. You click on a link in the email and then you can then start trading.
The whole process can easily be completed in under 2 minutes.
How Long Does the Demo Account Last?
The City Index and Finspreads accounts last for about 2 weeks.
The Financial Spreads, Capital Spreads and InterTrader accounts last much longer, you can normally keep them open for months at a time.
The Downside of a Demo Account
A key element of trading is psychology and how you react when your positions are in the black / red.It’s much easier to be calm and rational with virtual money than real money. That’s the key flaw with practice accounts.
Yes, you are trading identical prices to the real money platform but they don’t put you under any real psychological pressure.
Nevertheless, a Demo Account is still useful for beginners and those who want to get more familiar with how the markets, platforms, charts, trading orders etc. work.
Spread betting and CFD trading carry a high level of risk to your capital and you may lose more than your initial investment. Spread betting and CFD trading may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary.