XM demo account: How to use it – Trading tutorial

Trading has been around us for centuries. People understood that the exchange of goods and services is necessary for sustaining life. Trading was born as a result of it. Earlier it served only one purpose; to provide a means of livelihood. But over the years of progression, now we have arrived at the time where it serves something beyond the ordinary means. 

Trading is now the fastest way to grow your wealth. You can multiply your assets and improve your financial status with smart trading decisions. Since money is a common need for everyone, everybody should consider investing in assets and growing their current wealth. 

Some people may argue that survival is more important than getting rich. They believe that you can survive by reducing your expenses alone and leading a simple life. It is true but to enjoy worldly pleasures, you must try to get richer.

It may not require you to become a billionaire, but you should at least try to become financially sound. Leading a simple life does not mean you should not explore the ways of financial growth. So, trading is the ideal way to fulfill that purpose. It is perhaps the most legal way to get the profits in minimum time. 

People often get blinded by their desperation to get rich and end up leading the wrong path. It brings them endless suffering instead of fulfilling their desires. So, such people can avoid the traps by trying their hand in trading. 

When you trade for the first time and win the trade, it can give you the greatest pleasure. There can be no other feeling comparable to what successful live trading can provide. Your first win can give you the feeling of being at the top of the world.

But as a beginner, you must know that it may not continue longer. It often lasts only for a short duration. That is because Live trading can be a huge mistake if you enter the trading world solely based on your craze to make money. 

Many new traders experience consecutive wins the moment they begin trading. But, they should understand that it is the result of pure luck. There is no skill involved, so eventually, it will end in unpredictable losses. So, before you start to realize your dream of successful live trading, it is a must to know in deep about trading. But, some traders may try to learn the process by getting involved in the trades. So, they should find a risk-free way of trading. 

When you become a part of the trading world, you must know that trading and risks are inseparable from each other. So, expecting a completely risk-free trade is not wise. However, that does not mean we cannot sideline them. We can reduce the risks immensely if we use proper strategies and make the moves wisely.

But, the most fruitful way is to use a demo account. With the help of demo trading, you can reap all the benefits of a real trade minus the risks. They act as just the right tool to trade without actually risking your funds.

Trading is an exhausting task regardless of being live or demo. It can throw unforeseen challenges. Though it appears easy nowadays, it is still a demanding process. 

We can observe a substantial change in the trading methods over the past few decades. Online mode has been on the rise for the past few decades. It is being used for most of our daily activities. As a result, it is also taking over traditional ways of trading. 

It offers abundant opportunities for anyone looking for financial growth. With just a few clicks, you can trade in various assets from stocks, crypto, CFDs, currency pairs, etc. But, a new trader may not be sure about where to begin from. That is where the online brokers bridge the gap by mediating the transactions. So, they make the trading process easy, and we cannot ignore their importance. 

An online broker like XM does the same job of making trades easier. It helps execute the trading process with its advanced services and platforms. When it’s about the brokers, you can find many of them offering different accounts and payment methods. 

The accounts can range from a demo account to a trading account. However, some brokers also offer a premium or VIP account to their exclusive members. Therefore, we can expect different charges for those accounts. Regardless of the features, a new trader will always face difficulty deciding the account type. It is always recommendable to go with one that offers minimum charges. 

Since we cannot expect any broker to offer their real trading account for free as it’s the base of their business, demo accounts are the safest option. Most brokers like XM offer demo accounts that the users can employ to learn trading essentials. Moreover, they can help in practicing strategies as well.

Knowing the broker first before beginning your trading journey is always wise. So, let us know more about XM and the demo accounts in general, and then we can decide on the suitability.

About XM

XM is a renowned online trading broker that came into existence in 2009. It offers a premium trading service in multiple asset classes. You can trade in Forex, CFD, stocks, indices, etc. That is why more than 5000,000 clients from over 190 countries trust it.

XM is a broker that stands apart from its competitors by having executed over 24,00,000,000 trades without any rejections or requotes.

XM’s management team constantly tries to build a healthy and long-lasting relationship with all its customers. That is why they have visited over 120 cities to meet the clients and partners and get their feedback. 

With over a decade in the business, it has continuously grown to become a reliable name in the field. That is why we can name it the true industry leader. It has more than 600 professionals working day and night to provide the best customer service. 

The professionals of XM are among the most experienced ones in the financial industry. So, when you combine their dedication with their expertise, you get the best services that you can rely upon.

XM is a broker that offers its services in more than 30 languages, making it convenient for any trader to understand trading. When you become an XM trader, you also get 16 full feature trading platforms and more than 25 methods of payment. Additionally, they offer dedicated personal customer service that works 24/5. So, in case you face any trouble, they can resolve it within a blink of an eye.

What is the demo account?

XM Rating	4.5/5
Demo Account	Yes
Regulators	ASIC, IFSC, CYSEC
Minimum Deposit	$5
Demo Trading Cost	$0
Demo Account Activation Time	24 Hours
Demo Charges/Commission	N/A
Demo Expiry	N/A

A demo account serves as a mockup account of the real trading account. It resembles all the features except the funds. The trading brokers offer it with virtual money. So, we can infer that the primary purpose of a demo account is to mimic the real account. 

It essentially imitates real trading with virtual funds. Such funding is useful for the users in many ways. But it primarily encourages them to test different strategies without the fear of consequences. The demo account allows you to practice with money that is not real, but it offers a new trader an outline of the whole trading portfolio.

We can see a demo account as an essential selling feature for all online trading brokers. A broker cannot hope for a better customer pool without offering a demo account at first. Once the customers start switching to live accounts, it is obvious that the traders charge fees for their services. 

However, the fees shall depend on the account type. But, no sensible customer would want to invest straightaway into a real account without a trial. A broker must give a trial of all the features before finally getting the customers to pay.

The trading brokers offer a demo account packed with fictional funds to achieve that. It enables the traders to practice without the threat of any loss. So, we can say it serves as a training ground. The virtual money in the account helps simplify the learning process by removing the fear of losing real money. Though emotions play a vital role in real trading, initially, you must start without getting affected. 

We can understand the use of a demo account with an example. Forex trading is a risky process as the market is volatile. In such cases, newcomers should learn the market before trading. So, when you are a Forex trader, demo trading is the simplest way to start learning forex.

A demo account offers newbie traders a chance to test their abilities without risks. But you must not think it is useless for experienced traders. They can also use a demo account to evaluate the suitability of a platform and check out the new features of the broker. They can also evaluate the applicability of their strategies smartly.

Investing in CFDs, forex, or any other financial instrument online requires you to know the market volatilities. Without that, there’s a high risk of making poor decisions.

Many newbies step into the trading domain with an overwhelming amount of funds sometimes. But a lack of knowledge causes them to suffer a financial loss. They invest their funds in various assets hoping for profits but lose their life savings. That is where the proper knowledge comes as a lifesaver. It can help avoid wrong financial decisions and strategies. 

A demo account like the one XM offers can help the traders resolve this issue. Traders can devise proper investment strategies and minimize losses with a demo account.

They can easily learn about the functioning of the market through a demo account. When you consecutively make mistakes without real-time risks, you can understand where things are going wrong.

When discussing the XM demo account, it is almost the same as the live trading account. The only dissimilarity between the two is that you need not fund your demo account with real money. 

When you sign up for an XM demo account, it gets credited with virtual funds. You can use them to learn about the strength of your financial decisions and help yourself devise the right strategies for winning more trades. 

It empowers the traders to apprehend how to use the technical tools to evaluate markets risk-free. They can view the charts, analyze market movements, and set stop losses. It aids them in developing such skills that will help them in the long run. So when they invest with real money, they can avoid the stress and make the most profitable move.

The popularity of a demo account was unseen before the prevalence of online trading. It has made the demo accounts an ideal way to attract customers now. Moreover, the brokers don’t refrain from marketing it as a trial method. The best part is that users can utilize all the features without paying charges.

The uses of a demo account in general aspects are also not limited. We can view its reach from the Institutions using it to teach the basics of investing. So, it is a tool that allows you to get familiar with the platform and trading in general also. The trader can get an insight into how the market affects the trades.

But, a new trader must never forget that all the results in a demo account are simulated. Such results may not relate to actual results in each trade you make. So, a wise trader would not get overconfident with consecutive wins. Instead, she will focus on brushing up the skills further and be more cautious while trading in real-time.

How to open the demo account?

Demo accounts offer a safe ground to practice trading. But traders can benefit from it only if the registration process is simple. So, XM takes care of that issue by letting the new traders access their demo account with simple steps:

1. Firstly, you need to visit the XM website and click on the ‘Open Demo Account’ button. You can find the banner on their homepage.

2. The web page will redirect you to a new page when you click on the banner. You need to provide your details there. It may ask your First and Last name, Country, the city you reside in, etc. You may also need to provide your email, mobile number, and even the language of choice.

3. The trader needs to complete the trading account details next. She can select the platform type, account type, base currency, etc.
4. Next, the trader needs to create a unique password. After that, you can select whether you want to receive newsletters, company news, etc., before selecting the ‘Open Demo Account.’

5. The trader can then view a new page informing about the successful creation of the demo account. Also, XM will send an email confirmation to the email id.

6. After receiving the email, the trader must click on the embedded link. It will verify the email id and redirect to the XM website.

7. She will receive the user ID and the link to the trading platform selected on that page.

8. Finally, you must download the trading platform and install it to use the demo account. After that, you can log in using the given user id and password you created.

How to use the demo account?

You can trade during normal market hours with an XM demo account. You can use their real-time interface to predict the outcomes precisely. The results of your strategy’s effectiveness come close to live trading with XM. So, you can use it to have the real feel of trading without you losing any actual funds.

XM demo account draws significance when the trader is new to the trading field as a whole. You can use it to eliminate all risks with it. Also, traders should use demo accounts to refrain from the trial and error approach.

It is common among the traders to take the unwanted risk thinking it will give them the learning with fewer losses. But, trading is unpredictable, and you may lose more than you assume. Learning the trading methods with real money is an unwise decision. So, using a demo account properly will help in avoiding that.

Moreover, when you start using a demo account, it is recommendable to keep a trading journal. It helps track the progress without missing details and pinpoint strengths and weaknesses made in demo trading. So before shifting to a live account, you can resolve them and reap maximum out of the actual trade.

Features 

The features of the XM demo account largely depend on the trading platform. However, It lets you trade stocks, commodities, currencies, among other assets. It offers all those assets through the advanced Meta Trader 4 or 5 platforms.

Moreover, XM demo trading comes with no hidden charges. You can trade freely with virtual money. 

Conclusion

XM is a broker that tries to excel in online trading. With its presence in the field for more than 10 years, it has established itself as a reliable name. It offers a demo account for anyone seeking to enter trading. The demo account is easy to operate and shows how real trading happens. So, with its help, any trader can enhance and uplift the trading game.

FAQ – The most asked questions about XM demo account :

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Last Updated on January 27, 2023 by Arkady Müller