XM Trading has a demo account and a real account. 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 you may lose a lot in Forex.
How and how to open a demo account
The demo account does not use real money and is an account type that allows you to trade stress-free. See below for how to open this account.
How to open a real account and procedures
With a real account, you actually trade with your own money. It is recommended for those who have some experience because you can take all the profits you put out. See below for how to open this account.
Difference between demo account and real account
There are some differences between a demo account and a real account, so I will explain them in order.
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
Along with the above, whether virtual money or real money is used has a great impact on the mind. Even if the demo account loses, the virtual balance will only decrease and the self-fund will not decrease. A real account may lose money, and your money will decrease. Even when trading, it is necessary to trade while always considering the risk of loss. The reality is that many people continue to lose money, especially until they have a few years of experience.
With or without bonus
XM has a very luxurious bonus campaign, and when you open an account, you can get a bonus of 13,000 yen, and a bonus of up to about 1,300,000 yen depending on the deposit amount. A real account allows you to receive and trade all XM bonuses. On the other hand, since the demo account trades with a virtual balance, there is no bonus mechanism itself.
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.
important point
Please be aware of the following points when actually trading, whether it is a demo account or a real account.
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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