What Size Of A Demo Account Should I Practice With?
I was speaking with a good friend the other day; about demo trading versus live trading, and how to make the transition smooth. He mentioned that he had not yet started trading live, and that he had been offered by a broker a free demo account with an initial balance of fifty thousand dollars. He stated that when he did go live it would not be with that amount. He then asked “Was this a good way to practice trading the platform?”
This is my feeling on the subject. When a broker advertises “Open up a free demo account” with a large dollar amount attached I think it is poor form. This gives the beginner and anyone unable to trade with that large of a dollar amount right off the bat a faults sense of security. I think it is premature and greedy on the part of the broker.