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By Cory Mitchell Updated Oct 12, Demo accounts are advertised all over the internet, and people who surf financial sites are often exposed to many advertisements that try to entice them to open a demo account. Demo account trading could be considered a more modern form of paper trading. The old-fashioned paper trade involved writing down entries and exits to see how a methodology played out in the market. Key Takeaways Demo accounts can provide some benefit to new traders because they allow the trader to become familiar with trading software and get a sense of how the market works.

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He has provided education to individual traders and investors for over 20 years. A day-trading simulator, or a demo account, might not mimic all of the pressures and risks that come with having real money on the line, but it can still be valuable for learning and honing trading strategies. Using a day-trading simulator is a way to develop confidence in your trading decisions; you can trade without fearing mistakes. Simulators enable you to monitor market conditions and explore different charting tools and indicators.

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It is now time you get practical. You need first to test your grasp of the training that you just had and gain an even more profound β€” more practical β€” understanding of this market. And there can be no better way to put your forex trading skills to test than by starting in the risk-free trading environment β€” the demo account.

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