The Plus500 Demo Account Review
In our Plus500 review written and published by our staff not too long ago, we didn’t delve into the Plus500 Demo Account. Most traders aren’t interested in demo accounts. They are more concerned about live trading. However, many traders have come to realise that demo accounts are a nifty tool and can certainly aid traders with a little less experience.
Below we go into further detail discussing the main benefits of demo accounts:
- Zero risk
- No time limit on the Plus500 demo account
- The ability to easily backtest trading strategies
- Practice makes perfect
- Become familiar with the vagaries of the Forex market
1) Zero Risk Using Plus500 Demo Account
One of the first pieces of advice expert traders tend to tell those learning about CFD trading is to start training with a demo account. Traders should do their best with demo accounts, learning to use them properly and testing strategies they’ve learnt as well as some of their own creations.
Many beginner traders don’t see the point of using a demo account such as the Plus500 demo account. Why should they waste time training with a demo when a live account would throw them straight into the deep end.
While the question is valid, those starting out shouldn’t expect to be a trading sensation overnight. It takes currency traders years to learn the ropes and finally feel comfortable and confident trading Forex. This is the real benefit of a demo account.
These practice accounts afford newbies all the time in the world to learn the Forex trading ropes without taking any risk at all. Without the fear of losing everything, traders can patiently build confidence to go on and master trading. Don’t turn down this opportunity, as not many other industries provide participants this chance. Trading CFDs on the live market carries risk. Make sure you can afford to take the high risk of losing your money before commencing live trading.
2) Unlimited Demo Account
With the Plus500 demo account, traders can patiently learn how to trade without rushing things, going at their own speed and growing more and more comfortable with Forex. However, this is not entirely accurate.
Unfortunately, not all Australian Forex brokers such as Pepperstone, IG Markets and IC markets offer their customers unlimited and unfettered access to their demo accounts. Remember, the main objective of Australian forex brokers is to make money. They’re also impatient and want to make their money as quickly as possible. It is for this reason that many brokers limit the amount of time a user can access their demo account for; usually 30, 60 or 90 days.
Fortunately for Plus500 customers, and a few other companies as featured in the table below, the Plus500 demo account is unlimited and traders really can practice in patience and peace and quiet. However, it must be said that after signing up for a demo account, Plus500 overload the user with emails to sign up for a full account. They also highlight often during trading that the user is missing out on the “real deal”.
3) Effective Back testing of Trading Strategies
Similar to writing an assignment or essay, successful Forex trading requires lots of planning and testing. It can often take months to devise a sound trading strategy.
Furthermore, it would be foolish to launch a strategy on the open market without ensuring it is as fail safe as possible. A trader, no matter how senior, will not be able to predict to absolute perfection how the market may perform. Currency markets are inherently volatile and as a result tactics needs to be dependable.
The Plus500 demo account is the perfect environment for back-testing trading strategies ensuring they are as tried and true as possible before live trading commences. Not confident your strategy will hold up? Not a problem!
With Plus500 you can spend as long as you like testing and critiquing giving yourself every opportunity of being successful when you eventually commence trading with real money.
4) Practice Using Plus500 Software
The Plus500 demo platform is identical to their live Australian forex broker trading accounts, the sole difference being the trading of “virtual money.” Not only do budding traders need to ensure their strategies are tried and tested, they also need to be as familiar as possible with the trading tools they plan on using.
Every company’s trading platform is slightly different and a split second hesitation due to not knowing where to access a certain graph or chart or forgetting how to execute a trade at the wrong moment could mean losing out on a fortune.
Again, Plus500 customers are lucky that they can take advantage of an unlimited demo account. As such there should be no excuse and no questions about how to use Plus500’s software when it comes to live Forex trading.
5) Prepare For The Vagaries of The Forex Market
A demo Australian forex broker account, particularly the one offered by Plus500 give clients maximum exposure to the way currency markets operate.
When trading live currencies, a piece of news that flashes across your TV screen or news ticker could have the potential to impact your open orders or your pending sales. Its actually quite intriguing getting to know how interconnected global financial markets are. It is one thing to learn about the inter connectivity of money and capital markets from text books or tertiary courses, but it is a completely different ball game when you’re trading.
Sudden changes in economic data triggered by a global disaster such as that experienced on September 11 can never be planned for when trading live. Yet, when using a demo, trading during turbulent or catastrophic events can be programmed into your software to see how you would have fared.
You’ll learn pretty quickly that it is never advised to trade during a catastrophe. Witnessing a landmark event during a demo trading session will show you why in the best possible way to learn.
More About Plus500
Plus500 are an established, international business authorised and regulated in Cyprus and listed on the London stock exchange. They are headquartered in Haifa, Israel and have operations that span countries such as South Africa, Australia, Cyprus, Bulgaria & Singapore. They are well known for their competitive bid as spreads, minimal fees on deposits and withdrawals and easy to use proprietary trading accounts. Their official license is held with the Cyprus Securities and Exchange Commission.
Plus500 Demo, A Summary
Many of the most experienced Forex traders, started with a demo account. They took demo trading seriously and treated their practice accounts like it were their live trading accounts. To them, there was no such thing as training money. They practised and practised using a demo until they felt they were prepared for anything. Australian Forex broker demo accounts are incredibly handy tools and an unlimited account such as that offered by Plus500 and EasyMarkets should be used allowing you to become a savvy CFD Trader. A demo account should always be a cornerstone of your Forex trading education as it enhances the chances of being a knowledgeable trader.
Looking For More Demo Accounts
Most forex brokers offer demo accounts with different forex trading platforms, funds and expiry details. You can view the best Australian forex demo accounts or the best global forex demo accounts. You can also review the complete reviews of each forex broker on the top navigation section of Compare Forex Brokers.