XMTrading, an overseas FX trading company, has demo and real accounts, so we will explain which one is recommended to use, the points to note, the differences between opening and trading, the advantages and features. If you are a beginner, you may not know which one to choose in the first place. There are clear differences, advantages and disadvantages between demo and real accounts. If you trade without knowing this, you may not improve your trading at all or suffer large losses in FX.
How and how to open a demo account
A demo account is an account type that allows you to trade stress-free without using real money. Please see below for details on how to apply for and use this account. Overseas Forex brokers basically always have a demo account. It is very easy to activate and trade without authentication. Any questions you may have will be answered via live chat. It is convenient to trade on your computer or smartphone app. You can also check the FAQ on the official website.
How to open a real account and procedures
With a real account, you will be trading using your own money. Since you can keep all the profits you make, it is recommended for people with some experience. Please see below for instructions on how to open this account. Many people start with a standard or micro account. It is also compatible with apps and methods such as scalping and automated trading (EA). The platform and downloads are free on the official website. The server environment is also stable. For real accounts, identity verification of personal information is required.
Difference between demo account and real account
There are several differences between a demo account and a real account, so I will explain them one by one. As stated in the official website, there are a wide variety of currency pairs, and the speed and operation are comfortable. It is also safe and reliable as it is licensed by the Financial Services Agency. Swap points will be generated when you trade across days. Market price movements are almost the same, but real accounts are affected differently only by important economic indicators.
virtual or real money
The decisive difference between XM’s demo account and real account is “whether to use virtual balance or real money”. No matter how much money you make or how much you lose, the demo account trades with virtual money and does not affect your real assets. A real account will be funded by your own funds. So, if you actually win the trade, you will earn more money, and if you lose, you will lose money. The big difference between a demo account and a real account is whether or not you can actually earn money.
mental aspect
In line with the above, whether you use virtual or real money has a big impact on your mental health. Even if you lose money in a demo account, your virtual balance will decrease, not your own funds. With a real account, you can lose money, and your own money will decrease. When trading, you must always consider the risk of losing money. In reality, many people continue to lose money, especially until they have several years of experience. There is a stop loss system in place, so if you use it, your money will not decrease significantly. However, even if you are a new investor with high leverage in real life, you will hesitate to trade with virtual currencies or foreign exchange.
With or without bonus
XM has a very generous bonus campaign, and when you open an account you will receive a bonus of 13,000 yen, plus up to 1.3 million yen depending on the amount of your deposit. With a real account, you can receive all of XM’s bonuses and trade. On the other hand, since demo accounts are traded with a virtual balance, there is no bonus system. The system offers multiple real accounts with attractive bonuses that are among the best in the industry, making it a very amazing program. As a result, you can make a profit by placing orders for multiple stocks at once.
Demo account features
The demo account has no increase or decrease in self-funds, for better or worse. If you can’t earn money with FX, you don’t have to worry about losing money. Since virtual money is used, the advantage is that you do not have to worry if the balance becomes 0. However, there is also a disadvantage that the mental necessary to become a profitable trader in the future does not grow easily. And above all, since it is not a real game, no matter how much you win, it will not lead to profit, and of course there is no bonus system in the demo account.
Features of a real account
With a real account, you will be using your real money. Especially in the first few years, you won’t be able to keep winning, so your money will start to dwindle. But there are benefits too. You can train your mentality by using a real account. In addition, there is also a big merit that you can get an account opening bonus and a deposit bonus. XM allows you to trade with only bonus funds, so this will also be an advantage.
Are there any precautions to take when opening an account?
When actually trading on the screen, whether you use a demo account or a real account, please be careful of the following precautions and rules. If you have any questions, please contact administrative support. Each has different functional limitations and points. We recommend that you test it a little and try it out. You can feel safe as you can trade with just a click on your smartphone or computer. The specs are good, so let’s take advantage of it.
If you can win with a demo account, you can also win with a real account
The mental pressure is overwhelmingly different between a real account that may reduce your own funds and a demo account that only reduces your virtual balance. For better or worse, a demo account is easy to start, and it doesn’t cost money, so you can’t experience the tension of Forex with a demo account. So, the feeling of actually trading with money in a real account and trading with virtual money is completely different. Therefore, even if you win with a demo account, there is no guarantee that you will win with a real account.
If you use the bonus, you can save money even if you have zero own funds
In the case of a real account, it is limited to those with some experience, but XM allows you to trade with just a bonus. You can continue to save money by trading only with the account opening bonus money. The bonus is non-withdrawable, but you can withdraw the profit from trading to your bank account. However, for beginners, 100% of the initial deposit will be lost, so it will not be very helpful.
Unusable if left unattended
Please be aware that demo and real accounts will become unusable if left unattended. If you do not log in or trade for 90 days, the demo account will become a “dormant account” and you will not be able to log in or trade. A real account will become a “dormant account” if there is no login or transaction for 90 days with an account balance. Please note that if you become a dormant account, you will be charged a monthly account maintenance fee of $ 5 until the account balance reaches 0 from the next month onwards.
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