What is a Demo Account
Demo account is basically a reflection of a real account. The only difference is that in the demo account you trade with virtual money and in the real account the money you trade with is real. Everything else stays the same. That’s why a demo account is a great tool for testing.
Why Do We Need a Demo Account?
Obvious reason for using a demo account is to get familiar with the MT4 terminal. You can click on anything and at the same time be sure that it will not do any harm to your capital. Another reason for having a demo account is to test your trading strategy. You can work on your entries and exits, also you can see how you react on profits, losses and sudden price changes. Trading on a demo account is a good lesson before you start the real game.
However, from MQL4 perspective, demo account is an absolute must if you want to use your scripts, expert advisors and custom indicators on real-life accounts. Using your MQL4 program without testing it on a demo first is like driving a car without brakes. It is almost sure that you missed something or did a mistake that was not picked up during compiling. Running your code on a demo with no issues gives you 99% chance that results will be the same on a real environment.
How to Create a Demo Account
- Open you MT4 terminal. If you don’t have it yet. You can download it from www.metatrader4.com
- Click File -> Open an account
- Choose demo server. Servers names will be different for each broker. Look for one with the ‘demo’ in the name.
- Select New demo account
- Put your name, email address and phone number – IT MIGHT BE ALL FAKE – and select I agree to subscribe to your newsletter
- Click Next. MT creates a demo account for you. Copy your login and password and store it somewhere.
- DONE – you just created a demo account.