Think of a demo account as practical driving exams for student drivers. This is because the former and the latter preferably come after theoretical and classroom education are undergone with the aid of a professional, and the results of which determine how proficient you actually are. In order to showcase the effectivity and relevance of Forex practice accounts, developers offer traders the opportunity to use the same for a limited period of time, for free via demo accounts. This article will highlight demo account points of comparison based on consumer reviews and comparative website information.
Forex Demo Account: Clientele
Traders look at the applicability of a particular demo account based on the nationality of the clientele. Some demo accounts have several client bases while some specialize on a particular type or exclude specific markets. For example, market.com, Alpari, GCI, and Plus500 have no U.S. clients.
Forex Demo Account: Regulatory Body
Demo accounts need to be properly registered and regulated by the appropriate government or regulatory institution based on the jurisdiction within which the provider operates. If a demo account or provider purports to provide practice Forex trading in a particular jurisdiction but does not have the appropriate regulatory license, then the same provider must be red flagged. For example, a demo account provider with US clients needs to have the proper National Futures Association (NFA) license. In this regard a provider with several licenses or are regulated by several entities offer a trader with a more flexible demo account.
Forex Demo Account: Type of Demo Account
Demo accounts can be classified as free accounts with mini functionality and limited use, or full demo accounts requiring payment of a relatively minimal fee. Some providers offer unlimited mini demo accounts while some do not offer demo accounts at all. Of course it will not hurt to contact the provider to request for an accommodation, especially if you have heard good things about the practice account and your firm has an established track record.
Forex Demo Account: Software Updates
Some updates or most of them are only available for full demo accounts. That is why professional demo account jumpers time their demo registration after an update. If you are thinking of upgrading to a paid account then it would be best to inquire about a lifetime update fee. Remember software updates are essential because they not only provide closer to real time rates but are also implemented to correct errors or update obsolete trading rules and formulas. Therefore having the most updated version can mean the difference between reading the indicators right and reading them wrong.
Forex Demo Account: Customer Service and Refund Policy
Consumers, especially professional traders need VIP like customer service. This means very little waiting time, no automated selection, expertly trained and well spoken customer service representatives. This is because professional traders work on a very tight schedule and a 24 to 48 hour waiting time or unending voice prompts will not cut it.
Experience dictates that the best products and services have the best refund policies. Why? This is because they know the value of the service they offer. These providers are confident that a properly informed consumer will find value and relevance in their product or service. As such, very little or no refunds take place.