What is the difference in the way demo accounts work compared to real accounts at Instaforex.
At Instaforex, there are standard accounts and eurica accounts, what is the difference?
Thank you
To Milka Amelia,
The way it works and the trading atmosphere on a demo account and a real account should be the same. Thus, price movements on both the demo server and the real server should be the same. If there are any differences, they should not be significant. In addition, the execution speed should also be the same. Although demo accounts are given fast execution speeds, in reality (and in most cases) real accounts have a slight delay when placing instant orders. Therefore, on a real account, requotes or even slippage often occur when placing orders.
Standard accounts from broker Instaforex are generally no different from standard accounts at other brokers. As for the eurica account provided by Instaforex, it is a type of account that does not have a spread. However, as a substitute, Instaforex charges a commission each time you open an order. The amount of the commission varies. You can consult directly with the broker in question.
Hopefully this can help.
To Setyo,
Many argue that demo accounts are suitable for beginners who want to learn to understand forex trading and practice technical analysis. This statement is true, but I personally have a different view.
In my opinion, it is true that a demo account is a suitable medium for learning to practice technical analysis. However, on the other hand, forex trading also requires psychological discipline.
Generally, what I find is that most beginners who have sufficient technical analysis skills and have been able to generate profits in demo accounts are still unable to manage MM and psychology when switching to real accounts. A simple analogy about psychology, if a floating minus occurs in a demo account of thousands of Dollars, we can still remain calm. However, if we switch to a real account, a floating minus of tens of Dollars has already managed to make us tremble. This is what often happens to beginners.
In conclusion, demo accounts have proven to be less effective in training trader psychology to face that fear. Because in reality, forex trading is not just about trading with high-accuracy technical analysis, but also the art of managing psychology and money management.
Therefore, I argue that instead of learning on a demo account, it is better to learn using a real account. Because the real account is intended as a learning medium, do not deposit all your money there! For example, you deposit an initial capital of $5 only, then you use it to trade with trading strategies and technical analysis that you have learned. As time goes on, you will face what is called floating and how to overcome it. Because you are trading with real money, you certainly won't be able to arbitrarily open positions like on a demo account. Indirectly, you will also learn what money management is and also form your trading psychology.
If you have successfully gone through all of that and managed to achieve consistent profits, then you will not only get skills and a more solid trading psychology, but you will also get a reward in the form of profits that can be withdrawn. But if you fail, you won't lose a lot of money there. Therefore, use as little capital as possible so you don't feel like you've lost a lot of money if you experience failure in practice. If you ultimately experience a margin call, you can deposit funds again. Then after that, fix and evaluate your trading system again. Instill this mindset in your mind, like entering a university, if you are still unable to graduate as soon as possible then you have to spend more money to pay tuition fees, operational costs, etc. The same goes for learning to trade, if you are not yet able to identify and fix your mistakes in trading, then you also have to dig into your pocket again to deposit funds again. Thus, you will be more disciplined, both in managing money management or in applying a trading system.
Therefore, I believe that a real account is a suitable medium for learning a trading system and trading psychology for beginners. Although on a demo account you can do the same, but on a demo account there is no effect that can train your psychology. Nevertheless, the final decision still rests on the choice you make.
Hopefully it can help.