The MetaTrader 5 (MT5) demo account is a simulated trading account that allows users to place trades without depositing any cryptocurrency or asset while trading with a preferred broker.

MetaTrader demo account provides users with all the benefits and experiences of real trading without the risks of incurring losses. It enables users to gain valuable experience on the use of the trading environment and resources to: analyse spreads, use leverages and margins and test different trading strategies with different indicators, all in order to set users up for real trading. MetaTrader5 demo accounts also allow users to explore different brokers and their various perks before selecting one. These various benefits help traders to familiarise with the trading environment and safely test the waters of the volatile market before setting up their live account.

Advantages of Using The MT5 Demo Account

The MT5 demo account provides traders with custom-tailored trading experiences designed to suit users’ preferences. A wide range of indicators and tools presents them the opportunity to explore various setups of their choice. They can also take advantage of the availability of multiple brokers to switch between brokers as they deem fit. Another interesting feature of demo trading on MetaTrader5 is the ability of the platform to interoperate with trading bots. These numerous pros make up for the fact that MT5 is built with the MQL5 programming language which many claim to have complex commands. For this reason, most traders might choose the MT4 due to its perceived simplicity or just because they are used to the older versions.

How To Set Up A Demo Account

  • Click the + option which is on the account management page.

  • Choose your preferred brokerage company that you would like to create an account with. You would have to type the name of the broker on the search bar because the list would not come out automatically.

  • After you click on the preferred server line, click on “demo account”. If you are a beginner, you will have to input the account details that are required to set it up. If you have an existing account, you have to input your “Login” and “Password”

Criteria For Opening A Demo Account

While demo accounts are often recommended for beginner traders starting out, intermediary and expert level traders also often use demo accounts to test different trading strategies and tools. This allows them to review their results, reflect on their trading strategies and make necessary changes to increase their chances of profitability before trading with live accounts. Opening a demo trading account would require users to fill the following:

  1. Full name of user (first and last)

  2. Contact phone number

  3. Email address of user

  4. Account type (Demo)

  5. Leverage - the ratio between borrowed and owned capital.

  6. Initial trading deposit.

After completing this registration, there is a ready button below the page

How To Trade With Your MT5 Demo Account

Lack of knowledge on how to trade with MetaTrader5 can cause great losses to traders. Thankfully, the demo trading environment provides the perfect setup for traders to hone their skills.

After logging in using the required details (username and password), users are directed to the home screen, which is the trading interface. This page consists of four major parts which are customisable for efficient and easy use. These include the Market Watch Panel (which acts as your watchlist as you add each trading pair or asset that you plan to trade in the future), the Navigator panel (which gives you direct access to your account details, trading bots, indicator list and many more), the Trading Panel (which will show you all active and pending trades that have been executed using your account, alongside market alerts and signals with a calendar of important market events) and finally the Chart Panel (where you will be given access to built-in charts that can be placed side-by-side). These are fully customisable and very easy to operate with the indicators available.

As a beginner, it is best advised to start with a demo account with a risk-free experience to operate on anything. It’s the best way to learn, considering the fact that trading profitably comes from learning from your mistakes since these mistakes would just mean losing virtual cash. You are indirectly one step ahead because you gain a lot of experience from doing wrong things while retaining a lot of important information to profit.

You can start trading using your demo account by ensuring that you have the right idea and leverage for the account as this allows you to be sure you aren’t betting too much on a particular asset and outcome. You can then pick an asset to trade in by carefully examining its fundamentals and corresponding chart to indicate and weigh the risk as well as the potential gain for this particular trade.

MT5 calculates the amount you spend per trade once you have chosen an asset and have chosen the lot size you would want to trade as well as the price you want to buy or sell at. You can double-check this amount with your desired risk. With MT5, you are also given an easier way to trade using their one-click trading tool which is available within the charts you’ve viewed. Once your trade has been set, you will be alerted if your order has been filled as it would appear in your portfolio. If you choose to terminate your order, you can simply click the ‘x’ button located at the right-hand portion of your trade tab.

If you are having problems entering your trades or customising your MT5 to be efficient, you can simply watch YouTube tutorials. Since the metatrader platform is widely used, you can easily find your answer there or on forums hosted by the platform itself.

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