Investing in stocks always asks for thorough knowledge of stock markets which only comes through extensive level of practice. But practicing stock trading using the real money always carries the risk of losing the entire amount particularly for novice traders. This is where demo stock trading emerges as the best way to practice stock trading without risking the loss of actual money.
Today, all major stockbrokers in India offer demo trading account feature where users can signup and learn all types of stock trading in a simulated environment. Let’s get to know how you can setup a demo stock trading account in this post.
What is a demo stock trading account?
A demo stock trading account refers to a trading account that contains almost all the features and functionalities of the real stock market but in a simulated environment. This enables the platform users to learn the basics of stock trading and trade in different types of stocks just like they do in a real trading account.
However, investing in stocks through a demo stock trading account doesn’t involve the risk of losing the money. This is because a kind of virtual currency is used by stock traders to trade in these demo stocks.
Benefits of a Demo Stock Trading Account
- A demo trading account is a great tool for explaining how buying and selling operate without having to worry about losing money. This is so that traders can practice these operations using virtual money rather than actual currency using the demo trading account. New traders use these accounts a lot since they allow them to experience managing markets without really being provided real money. This is due to the fact that demo trading uses virtual money instead of real money that is exchanged on exchanges for both buyers and sellers.
- The primary benefit of demo trading accounts is that they enable traders to learn without suffering losses as a result of errors or miscalculations. This allows them to make money via trial and error instead of burning out from repeated attempts. In addition, it imparts knowledge on how markets should expand and thrive rather than using fictitious instances discovered through other channels.
- Professional traders can also benefit from a demo trading account since it allows them to practice trading methods in a risk-free setting before putting them to use in a live performance. Furthermore, by providing investors with a crucial preview of what to expect before they make a real-money investment, a demo trading account shields them from severe losses and helps them manage the risks associated with their cash.
How to open a Demo Stock Trading Account?
In today’s fast-paced technological world, opening a demo stock trading account has become exceptionally easy. There are several stockbrokers in India that allow users to open a demo stock trading account and learn stock trading the easiest and fastest way.
- Visit the website or download the app of the stockbroker or DP.
- Click on the “Register” button
- Enter your personal details like name, email address, email ID, and click on “Save Changes”
- Now your account is active and you can start trading in stocks.
- Once you register on the platform, your demo trading account gets active within a few hours.
- When it becomes active, you can start trading through your demo trading account.
How a demo trading account works?
- A demo trading account is an online brokerage account that is exactly like the real thing, with the exception that play money is used in place of real money (or other currencies). With the finest demo stock trading account, you may experiment with various trading methods and ideas without having to risk any money. It will allow us to observe how the plan is impacted by actual market data.
- Creating a sample trading account with your money firm is the simplest method. You can trade with play money without creating a new account if you already have one. Just log into your live account and select the demo mode.
- To reduce confusion when using several accounts, some brokers offer different login credentials for each of their sample accounts. However, it also implies that any tactics or guidelines are exclusive to the appropriate account type (live/demo). You should find out what kind of account you can access by speaking with your broker.
The Conclusion
While investing in stocks has become easier like never before, this also carries certain level of risk for the stock traders. This is why it is advisable to start trading in stocks through a demo stock trading account which is a safer and effective way to learn stock trading. And with so many brokers offering demo trading account these days, you can easily do some research and find out the most valuable trading account or best trading app for beginners in India these online.
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