So you have decided to get involved in forex trading.
Perhaps you are considering opening an IC Markets demo account first?
When either learning how to trade or trying out a new brokerage, one of the smartest things you can do is to open up a demo account.
This gives you the ability to work with virtual currency and take absolutely no risk in the marketplace.
This allows the trader to either perfect a strategy, or simply get used to the trading platform.
But before moving on, why not having a look at our IC Markets account types guide?
The first steps to opening an IC Markets Demo Account
In order to open your IC Markets demo account, the first thing you’ll need to do is head over to www.icmarkets.com .
When you look at the front page of the website, the very first thing that you will see is that there is the ability to either start trading live money, or to try a free demo account. Simply click on the “try a free demo” button, and it will take you to the next step.
Step Two: Completing Your IC Markets Demo Account Information
The next page is simply a form to put in your personal details such as your first and last name, email address, phone number, and country of residence. You have to agree to a handful of terms and conditions, and at that point you are ready to start selecting some of the parameters for your demo account.
The next step in opening your demo account is to choose the trading platform in which to test. There is cTrader, MetaTrader 4, and MetaTrader 5. You have the ability to open up accounts with any of these platforms, and simply need to download them in order to start paper trading. You will need to choose the account type and base currency, as well as the leverage.
You can use a true ECN account, a Standard Account, and leverage and various amounts including 1:1, 1:25, 1:50, 1:100, 1:200, 1:400, and 1:500. Beyond that, you can also choose the initial deposit which starts at 200 units, extending all the way to 5 million. Once you fill in this information, you download the trading platform.
The main difference between an IC Markets true ECN account and standard account is the fact that the standard account does not charge commission, although the spreads are ever so slightly higher. A true ECN account charges $7 commission per round turn, but spreads start from 0 pips. In this case, you should again try to select the IC Markets demo account type which you intend to trade with through a live account in future.
Check your email for your login and password, and simply enter the information into the trading platform when asked. It’s a simple as that, you are now ready to paper trade using IC Markets’ demo servers. At this point, you get real life conditions, without the risk of financial harm.
Differences between IC Markets live Account and demo Account trading
Even though you have market like conditions, you should keep in mind that there are several differences between live in demo trading. Without a doubt, the most obvious one is the fact that there is no serious harm that can come from paper trading.
With that said however, you should still take your demo trading with the utmost seriousness. This is the place where you can practice for live trading, and therefore you should try to treat it just as equally as your IC Markets live account.
Another thing that should be thought of is that there is very little in the way of slippage on a demo platform, which isn’t always the case under live conditions. (Slippage is when the difference between the bid and ask price fluctuates rapidly, and you don’t get the exact price you are looking for. This happens in extraordinarily volatile markets, but it should be noted that in currencies slippage tends to be very minor.)
All of that being said though, one thing that you should keep in mind is that if you cannot make money in a demo account, you certainly won’t be able to make it in a live account. You must have a feasible and viable strategy before risking any trading capital.
What type of trader are you?
74-89% of retail CFD accounts lose money
Advantages of Trading with an IC Markets Demo Account
There are a multitude of advantages when it comes to demo trading, and quite frankly even professional traders keep demo accounts as they allow the testing of new strategies. As markets evolve and change, professionals know that they need to do the same. Being able to test their thesis for a new strategy without risking financial ruin is a huge advantage.
IC Markets allows you to demo trade all products that they offer, and with market based spreads. There’s no restriction on the number of demo account you can open, so it allows you to practice until you are ready to risk real money.. The low latency execution and true ECN pricing with no re-quotes allows traders to see how they would perform in the real world.
Beyond that, IC Markets allows you to choose the leverage options that they offer, even in the demo account. By doing so, it allows you to practice in the exact same manner that you will in the real world. Beyond that, you’re allowed to use all three trading platforms, and of course you have the freedom to do all of this under no obligation.
Simply put, a demo account is one of the most important tools that a trader has at their disposal. This allows you to test strategies, build new strategies, or perhaps even work on the psychological aspect of trading when you hit a rough patch. Traders who have been around for decades still paper trade as it allows a whole host of benefits.
Advantages of IC Markets as a broker
There are several advantages to trading at IC Markets. Some of them include the fact that they are highly regulated, under the watchful eye of ASIC in Australia. (Australian Financial Services License Number 335692.) This allows you peace of mind as they have fully transparent and public records of conduct and liquidity.
Beyond that, client accounts are segregated trust accounts with strong Australian banks, including Westpac and NAB. This allows for safety of funds, as the brokerage firm does not have the ability to mix client funds with operational funds.
IC Markets doesn’t need to worry about the European Securities and Market Authority, which of course has recently cut back leverage significantly. This allows for traders to take full advantage of the leverage that they can find under Australian rules. This means that European-based users can still benefit from leverage of up to 1:500.
It should be noted that they do not accept US clients, as the US CTFC prohibits Americans from trading outside of their national borders. Overall however, IC markets remains a top broker of choice for traders around the world, and the IC Markets demo account is one of the best ways of getting used to the broker.