Table of contents:
- 1 What are the contents and features of a demo account?
A demo account is the entry point for most traders to the world of trading currency pairs and CFDs. Nowadays there are numerous brokers in this area who not only offer their clients the trading platform but also give them the opportunity to get to know this platform beforehand without any risk through a so-called demo account. In addition, the demo account generally has other advantages, which we would like to discuss in the following guide.
Furthermore, we will inform you specifically about the offer of the broker CMC Markets, which it makes available to its customers in the demo account area. In this context, we will also discuss the trading platform, as this is of course linked to the use of a demo account, as in most cases it is close to the trading platform both visually and in terms of functions.
What are the contents and features of a demo account?
If you are new to foreign exchange trading and compare different brokers, you will soon come across the concept of a demo account. In our reviews, which you are welcome to study in detail about each Forex broker, we not only deal with the trading platform but also with the demo account offered.
Also in the case of CMC Markets, the term test account would certainly be a little more informative, as it already indicates that the demo account is a special account that is intended for testing purposes. In other words, the demo account is an image of the trading platform, but with the big and important difference that the trader has no connection to real trading.
Although he can simulate purchases and sales and get to know the trading platform in full via the demo account, no actual trading takes place. Therefore, the demo account cannot be filled with real capital but is instead loaded with virtual money. This means that the customer cannot suffer any losses if, for example, he places a buy order via the demo account, which would then lead to capital losses in real trading.
What are the main features of the demo account in comparison?
There are some traders for whom the demo account is so important that it is one of the main criteria when comparing and selecting the appropriate Forex or CFD broker. For this reason, we would like to list below some of the features and characteristics in which there are differences in the demo accounts provided by the numerous brokers. In particular, the following features are the ones you should also consider when comparing demo accounts:
- Limited or unlimited duration
- Amount of the virtual credit
- Proximity to the trading platform
- Scope of functions
- Real or fake demo account
While some of these features are certainly self-explanatory, we would like to go into more detail about other features. As a beginner, you may not necessarily know the difference between a real and a fake demo account. The difference is characterized by the fact that a real demo account can be used immediately and independently of any deposit on the trading account.
With a fake demo account, however, the customer must either open at least the real trading account or even subsequently make the minimum deposit requested by the CFD broker to this account. Consequently, the demo account can only be used in this case if the customer has more or less definitely decided to use the broker.
Another feature, which is also of no small importance, is the intended term of the demo account. With many brokers, there is now no longer a term in this sense, as customers can use the demo account without time pressure, as there is no time limit after which the period of use expires. On the other hand, however, there are also various Forex and CFD brokers where the term is limited so that the test account can be used for 14 or up to 30 days, for example.
The features of the demo account with the broker CMC Markets
The broker CMC Markets is also one of the providers who provide their customers with a demo account. This has already been the case for a long time, although this test account can be used free of charge – just like with practically any other broker. The first important aspect is that the CMC Markets demo account has no limit on the period of use.
Trading can take place under real conditions, although the virtual balance is not among the highest in the industry at 10,000 euros. On the other hand, we believe that if you use up the balance relatively quickly, it will not be a problem to contact customer service and have the demo account re-funded with 10,000 Euros or more. It is also pleasing that the demo account reflects the trading platform very accurately, so that the trader actually has a very useful test phase, for example, if he wants to get used to the Next Generation trading platform offered by the broker.
The Next Generation trading platform at broker CMC Markets
As mentioned at the beginning, we would like to inform you about the broker CMC Markets not only about the demo account provided but also about the trading platform actually offered.
There are two trading platforms users can choose from. MetaTrader and Next Generation. First of all, it is advantageous that this platform is not tied to a specific device, because you don’t have to download and install any software before you can use it. Instead, Next Generation belongs to the so-called browser-based platforms, so that you have the opportunity to access the trading platform directly via the website in your browser. Among the extensive functions that the Next Generation trading platform offers are:
- Real-time courses
- Chart package including diagrams
- Automatic recognition of chart patterns
- Comprehensive account and portfolio management
Via the trading platform, it is now possible to trade more than 300 currency pairs and over 10,000 underlying assets in CFD trading. The platform has even received several awards, such as from 2013 to 2015 from Shares Magazine. In addition to the stationary trading platform, which is offered as a variant in the form of the Next Generation trading platform, customers can also trade via mobile means. For this purpose, the broker provides various apps that can be used via the iPhone or smartphones with the Android operating system, for example. The apps contain numerous functions that are already available on the Next Generation stationary trading platform.
Conclusion: Demo account of the broker CMC Markets
Our conclusion on the demo account, which the broker CMC Markets provide, is positive overall. The first thing that is convincing is that this demo account is available for an unlimited period of time. This means that customers do not have to feel under pressure to get to know the trading platform as well as possible within 14 days, as would be the case with some other brokers. This gives traders the opportunity to test strategies and familiarize themselves with the platform. The virtual credit does not amount to 100,000 euros as with some other brokers. However, if the available 10,000 Euro is used up, it will probably not be a problem to top up this amount again after consulting the customer service staff, as it is of course only virtual money.
We were also able to convince ourselves that the demo account is a very good replica of the Next Generation trading platform in terms of both appearance and functions. Thus, the trader benefits from a later smooth transition from the virtual to the real trading platform. As far as the Next Generation trading platform itself is concerned, it is equipped with extensive functions that can already be used to get to know via the demo account. In addition, there are now over 300 underlyings that can be selected via the trading platform in the forex trading area.
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