Demo Account

Before beginner traders can begin trading the real market, a beginner trader should look for a practice account which is commonly known as a practice account. This demo account practice account is provided for free by brokers and therefore also referred to as free demo account - Demo Commodity MT4 Practice Account.

This free demo account for beginners is provided to beginner traders for the purpose of practicing their strategies and commodity techniques as they learn how to trade the online market. This free demo account for beginners also allows the beginner traders to practice on the platform software that they will be using for online trading that is known as MetaTrader 4 software until they become familiar with its operation, as well as the execution of trades using this MT4 software and how to navigate the MT4 software & the charts that are within the MetaTrader 4 platform.

Demo Commodity MT4 Account Practice Account - To start learning commodity using demo online practice accounts, beginner traders need to start with a demo Commodity account, these demo accounts are similar to the real Commodity accounts in terms of the actual software as well as execution conditions of orders, the only difference is that for a demo account - a trader does not need to deposit any money when it comes to the demo account. The money used in the beginners demo account is virtual money, and it is not real money: beginners demo practice account is used to simulate real money trading without risking money.

Online Demo Practice Account - Learn Software with a Free Practice Account

The trading demo account will have a virtual balance of $5,000 or $10,000 or $50,000 or $100,000 and a demo trader can choose the amount of capital they want to practice trade with. The demo account example described above the virtual balance of $100, 000 as pictured above on the MT4 Transaction Window and a beginner trade can use this $100,000 dollars virtual balance for practice trading - Demo Commodity MT4 Account Practice Account.

Remember the trading demo account is a free account and because learning Commodity may take some time, brokers provide this as a way for beginner traders to study commodities trading and begin without depositing real money.

Beginner commodities traders should also look for an unlimited time practice account to ensure that they get enough practice time until they are ready to invest in the live market.

The main purpose of this demo account is to allow to beginners access the real market as other traders participating in the online trading market with real money, only that the difference is that the funds used in a demo account are virtual funds that are risk free, but everything else, from the software, trade order execution, commodity spreads and price movement are the same as of those traders transacting the live market.

As Commodity popularity grows and more financial instruments are introduced to be traded, these demo Commodity accounts can also be used to practice online trading on these newly added financial instruments.

Commodities: GOLD & SILVER

Futures: CORN, WHEAT, SBEAN

Energies: NGAS, OIL

Indices: DOW, NSDQ, SP, NK,DAX, FTSE, SMI, ESX50 & CAC

The financial instruments that are also gaining popularity in the online spot market, can now also be traded on the online trading demo account practice account - Demo Commodity MT4 Practice Account. These financial instruments are popular because they are used to hedge investment trades as well as provide additional financial instruments that can be traded online so as to diversify the portfolio of investors and online traders. These financial instruments are traded like this; when there is not enough liquidity or volatility in trading market then investors and online traders look for this liquidity and volatility in these alternative financial instruments. The popularity of these financial instruments also means that these financial instruments have also developed trends that can be analyzed.

This type of demo account is meant to serve the following purposes in commodity:

Learn Platform

The first thing which a Commodity demo account is supposed to do or is supposed to be used for is to study the ins and out of the trading software that your broker uses, a good example of a platform is the MetaTrader 4 platform. Once you register for a demo practice account with a broker and download their software platform, you will need to train on how to trade using the platform you have downloaded. Learning to operate this commodity software is especially crucial for beginners who don't have any knowledge of the market. If a beginner trader were to start directly by investing with real money without knowing the working of a platform they can easily make a mistake by pressing the wrong button or placing the wrong trade order by mistake without even knowing.

Learn Order Execution and Setting Trade Orders

Beginner traders won't know the difference between a limit order & a stop order, beginner traders will also not know when to buy or sell or which chart setup to buy & which chart setup to sell, therefore, the need to start with a practice trading Commodity practice account until the time that they get to know which commodity instrument to buy and which to sell and when to buy and when to sell.

Test Your Commodities System and Strategies

A demo practice account is a perfect ground for testing your commodities system and strategies, As a beginner trader the first thing you need to have before you start commodity online is a commodity system that is based on commodities strategies. After coming up with your system you will use this beginners demo account to back test it or what was anciently known as paper trading, this demo account trading is similar to the paper method only that it does not use pen and paper but the method of back testing is what is similar to that of paper method.

Until the time you start winning more on your practice trades only then - you can then consider to invest in your real account. Starting with $1,000 dollars or more is recommended, it is best to save your money upto at least $1,000 dollars that way you have a fair chance of succeeding as you will not make the number 1 mistake in commodities trading: under capitalization. In fact the more well capitalized your account is the better, you can start with $5,000 dollars, $20,000 or $50,000 - just make sure you have enough capital to start commodity with.

Ask yourself why most free practice accounts are set at account balances of $10,000 or $50,000 because the more well capitalized a account is the better the chances to succeed, because these accounts won't be undercapitalized.

Practice

This demo account - free practice account is a type of account offered by online brokers as a way to introduce beginner traders to their software platform and methods of trading orders execution. This where you Commodity practice until such a time when you can make profits on this demo account and then afterwards you can trade the live market.

The free demo account for beginners is a great way to get started and learn the specifics of online trading with no risk of losing money and at the same time get to know the execution methods of orders & test various commodity strategies for free.

Using a beginners demo practice account is the best way to gain knowledge and to help in the understanding of the actual trading process. A good software platform to use for opening a demo account and trade with is the MT4 platform which is simple to learn, the learn MT4 platform tutorial section which also includes the how to use MT4 demo account tutorial is also provided here on this Learn Website, under the right menu you might want to read the how to use MetaTrader 4 platform tutorial before opening a platform.

By using demo accounts, a beginner trader has the opportunity to learn executing trade transactions without risking their own money. The broker will set up a practice account for you for free so that you can test their commodities software, their execution - execution is considered by most investors and traders as an important aspect when choosing a broker, No Re-quotes Execution Policy is the best execution method of orders, many order requotes will mean sometimes investors not getting their orders executed, or if the orders are filled/executed they will be executed at a price that is not better than the one previously quoted plus the fact most online traders just hate being requoted. Imagine trying to place a order instead of the order getting executed instantly you get requoted, then you have to put another confirmation order, if you get requoted 5 times you'll have to place 5 other confirmation orders, plus the original order. A No-Requotes Policy for order execution is the best option to choose from.

There are many advantages of using an online demo account, the biggest advantage is having the time to figure out how each platform works, how to navigate the platform and know what each function does. On top of that you can use the online demo account to test your strategies to see if they work before switching to the real market.

Many beginner traders find that by putting the knowledge on this learn web site to work on a free practice account, they get a clearer understanding of what to look for before, during and after each trade transaction. These learn topics are aimed to teach every aspect of Commodities online trading, most beginners just learn about; a commodities system, how to generate trading signals and then begin investing on the real market, well it takes them less than a month to lose their invested capital. After all these beginner traders did not study about commodity money management topics under key concepts tutorials, neither did they read about commodity draw-down and maximum draw-down, and the best of them all LEVERAGE. If you have no idea what leverage is don't open a live account until you do.

Even the experienced investors and traders will also test the Trading demo accounts of other online brokers, especially if they want to change their broker. This is done so as to help them get to know more about the execution of the new broker and also study the new software of the new broker. Nowadays most traders just learn one trading platform, the MT4 software, which is provided for download by all brokers for free so when a trader moves from one broker to another they will still use the same software without the need of learning a new platform all over again.

The purpose of the trading demo account is to familiarize the beginner trader with the various methods of analyzing chart price movements and orders execution - it provides beginner traders with examples of how the market works without the risk of losing cash. A beginner trader can also learn how to execute orders and how to analyze charts and when and how to open a trade transaction, how to read a commodity quote, how to navigate price charts so that they master the various platform transactions before progressing to trade the live market.

Looking at the chart below a beginner trader would not know how to trade or execute a trade transaction if they were to start investing immediately. A beginner trader would almost certainly lose their money because they will not know what they will be doing or which button to press. This is why all beginner traders start with a commodities demo account provided for by their broker for free so as to practice on the platform software risk free using a practice online demo account before opening a live account.

Demo Account - Learn Charts using a Practice Demo

Learning the broker's software

Because different types of online platforms are provided to investors like the ones listed on this page; all brokers will have demonstration accounts with which a beginner trader can use to learn the new commodity software and about the various commodity tools provided by the broker on the software.

Web Based Platform - traders can learn this platform with a Practice Free Demo Account

Looking at the above examples - a trader would require to familiarize themselves this new commodity software afresh before beginning to use this new platform - an investor would then open a demo account and use it to learn the new platform.