Both the accounts have their own importance. While a demo account can be good for getting familiar with the platform, a micro account can be helpful in experiencing the real forex trading as the real money is at stake. I suggest using both the accounts to a beginner for preparing to trade in forex.
If you don’t mind losing money while practicing forex trading, then you can trade a micro account, otherwise stick to a demo account, which allows you to trade using virtual money. Ideally, you should start from a demo account and then switch to a micro account, so as to test the strategies that you have developed in a demo account.
Demo accounts usually execute your stop loss at the price you set your stop loss at, whether or not you can actually exit at that price.
Completely agree. The feeling of ease of trading that comes from sticking to the demo too long is counterproductive and plays against you, though its quite subtle point.
This has been a red-hot question for quite some time now, with some people inclined towards using demo accounts while others speaking in the favor of micro or cent accounts. I think it should be left to the traders as to which type of account he/she wants to choose. A demo account is ideal for those who haven’t accessed a trading platform ever, whereas a micro account is perfect for those who know how to place trades but haven’t placed one in a real account.
A demo account is useful for traders who have no experience accessing a trading account. Traders can use virtual money to practice their trading strategies. On the other hand, a micro account is useful for those who have practiced on a demo account and are now looking to try their hands on a live account but without risking high capital.
Despite how much information you manage to get about a market, they are worthless without practice. It is essential to test and implement your strategy until it is successful. Making use of a demo account helps you do this. A demo account is not only for beginners. In fact, many professional traders prefer to test their new trading strategies on a demo account first before applying them to real trading.