CFD Demo Platform Trading: How To Choose A CFD Demo Account To Trade With
CFD demo platforms and accounts allow you to practice placing trades on a CFD platform, to check that the order types that you need to place, in order to trade your CFD trading system properly, are indeed possible.
You can place many order types on a demo account to get used to their platform, to reduce the chances of mistakes when trading.
Also if you road test the trading platform, you can find out if there are any orders that are not possible to be placed that you thought were possible. If this is so, you can contact the CFD provider to make sure that this is the case, rather than a matter of you not figuring out how to do an order type on their platform.
If you cannot do an order type that you need, you may need to modify your system and re-backtest it, or look for another CFD provider.
Some people have more than one CFD provider to overcome any limitations of one provider.
For example if one provider only has a small list of shortable CFDs but has good commissions, a second provider that has a much larger list of shortable CFDs, though they may have a higher commission.
You can check on their CFD trial versions and see what is available.
Some thing sto consider:
1. Do you like the look of their platform? Is it easy to use?
2. Check orders to:
3. Do you like their charts?
4. Check their trading products, that is, how many CFDs are available to trade, how many can be shorted, their commisions and interest charges.
5. Check the overall company in regards to its stability, fees, how they handle support enquiries etc.
Therefore the main reasons for familiarising yourself with a platform is to both ensure that you can:
1. perform the trades correctly.
2. can see the list of open orders and pending orders are.
3. can see account and margin utilisation details.
4. have all the required products available to trade.
5. have reasonable spread.
Demo accounts usually consist of either online platforms with no software neede for your computer or they do require an installation of software, and updates may be needed every so often.
Because of the updates, ensure that you log in some time before the time you need to trade in case there is an update required. This is important if you need to trade at a specific time of the day.
Remember to know the costs of trading so that you can factor these in.
All trading involves a high risk of financial loss, and the information on this site is for general information purposes only and is not financial advice in any form. Seek your own financial advice before taking any action.
All forms of trading involves risk of financial loss.
Also note that CFD trading is not legally permitted in some countries.
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