I will explain the HotForex demo account, which is a very popular broker with traders around the world.
By opening a demo account, you can practice trading and check the actual trading environment in HotForex.
If you have any doubts about the trading environment, it is a good idea to try a demo account before opening a real account.
The biggest feature of the HotForex demo account is that there is a trade contest using the demo account and you can get a prize.
It is held every month. I will introduce it later.
This article describes the following:
- How to utilize HotForex demo account
- Characteristics of HotForex demo account
- Notes on HotForex demo account
- How to open HotForex demo account
- Features and benefits of HotForex demo account
- What is the purpose of using the HotForex demo account?
- Precautions when using the HotForex demo account
- HotForex Demo Account Specifications
- Precautions when creating a demo account for HotForex
- HotForex demo contest using demo account
- How to open HotForex demo account
Features and benefits of HotForex demo account
HotForex offers demo account.
Really tradeable account that is not demo accounts is commonly called “real account”.
When you open a demo account, equity is set in advance.
No need to deposit.
Just open it and you can start trading immediately.
- Easy registration, no need to submit identity verification documents
- Equity is prepared and you can trade immediately without deposit
- Trading is possible in almost the same environment as the production
- The rate etc. are the same as the actual production and are reflected in real time
- Products such as currency pairs and CFDs offered are the same as real account
- Anyone can use it for free
- No risk of losing your money
What is the purpose of using the HotForex demo account?
The demo account can be used for the following purposes.
- Check the trading environment of broker before opening a real account
- Forex beginners practice trading
- Try trading currency pairs and CFDs that you haven’t traded before
- Test EA (Automatic Trading Tool)
Check the trading environment
Regarding the first point of checking the trading environment, you can check the following points by actually trading with the demo account of the forex broker.
- Is the information on the official website correct, such as spreads?
- Is there any suspicious point about fluctuations in spreads and prices depending on the time of day and products?
- Is it easy for orders and payments to pass, or is it slippery?
The demo environment of each broker is provided “almost” the same environment as the real account.
You can check the approximate usability with the demo account.
Forex beginners practice trading
The demo account has almost the same environment as the real account, so you can practice trading in a real rate environment.
Even if you are not a beginner, you may use it as a place to practice, such as trying out newly learned methods.
Try trading currency pairs and CFDs that you haven’t traded before
This is what I do, sometimes I try to trade currency pairs and CFDs that I don’t usually trade.
I can do it with a real account, but since trading of unfamiliar products often loses at first, I use a demo account for verification.
Test EA (Automatic Trading Tool)
EA (Automatic Trading Tool) can be used in MT4 and MT5, a demo account may be used for testing in a real environment (called “forward test”).
Some paid EA’s do not work with demo account, so it is limited, but it is super dangerous to suddenly try EA that you have not used yet with real account, so you need to verify with demo account first.
If you have programming knowledge and skills, you can also develop your own EA using a dedicated language called MQL that runs on MetaTrader.
If you want to test your own EA, you will use demo account.
Precautions when using the HotForex demo account
In this way, anyone can open a demo account for free and it is a trading environment that can be used easily, but there are cautions when using it.
- Strictly not exactly the same environment as a real account
- Withdrawal is not allowed
- Deposit is not allowed
- Demo account cannot become real account
- Lack a feeling of tension
Strictly not exactly the same environment as a real account
Demo account is said to be “almost” the same environment as real account, but it is not exactly the same environment.
If you want to check the usability of a real account strictly, it is best to try using a real account even with very small margin.
Withdrawal is not allowed
Of course, even if you make a profit, you cannot withdraw.
Of course, you cannot withdraw the margin that is set automatically when you opened the demo account.
Deposit is not allowed
You cannot deposit to the demo account.
Even if your margin balance becomes zero during trade verification, you cannot deposit and increase your margin.
In this case you will have to open a demo account again.
In addition, some brokers will increase the margin of the demo account on an application basis.
Demo account cannot become real account
If you like the trading environment and want to continue trading with that broker, you need to open a real account again.
In that case, please note that the account number and the server name to login to MetaTrader will also change.
Lack a feeling of tension
This is the most important point.
The demo environment is not your own money, so you can trade as much as you want.
Even if you trade in a high lot that you would never normally do and lose a lot, there is no shock.
There is no point in practicing trading or verifying the method if you trade completely differently than usual.
Those brokers who practice and verify trading should keep in mind this part.
Otherwise, you will be doing the same trade, and you will lose in the real account.
HotForex Demo Account Specifications
HotForex allows you to create up to 6 demo accounts.
Up to 3 accounts on MT4 and 3 accounts on MT5.
There is only one type of demo account for HotForex. The conditions are almost the same as Premium account.
However, it differs in the following points.
- Only USD for account currency
- Initial trade amount can be selected from $5,000, $25,000, $50,000 and $100,000
The maximum leverage is 1:500, which is the same as Premium account.
The Premium account is the most standard account in HotForex, so there is no problem in verifying the trading environment.
For more information on HotForex account types, see the separate article, “HotForex All Account Types“.
Precautions when creating a demo account for HotForex
The biggest point to note is that you need to verify your identity.
This is the same process as opening a real account.
Identity verification is not required in other forex brokers.
There are many bokers where even user registration is not required, so opening a demo account in HotForex is tough to do.
From user registration to identity verification, see the separate article “How to Open HotForex Account” for details.
Please refer to this article and open a demo account.
HotForex demo contest using demo account
HotForex offers a trade contest using a demo account.
The ranking is determined by the profit margin traded in the demo account.
The winning prize is $2,000.
It is held every month.
The winnings will be provided as margin for your real account.
You can read more about the demo contest on the official website. Please take a look.
How to open HotForex demo account
From here, I will explain the procedure for opening a demo account for HotForex.
First, you need to register for myHF account.
If you are already registered with myHF, you can log in and create an additional demo account from the myHF page.
Click “Demo” on HotForex top page.
If you don’t have myHF account yet, click “New Clients”.
Register name, email address and so on.
From here onward to submitting your identity verification documents, please read the separate article “How to Open HotForex Account“.
Login to myHF
After registered myHF user account, login to myHF.
Click “MY ACCOUNTS” -> “Open Demo Account”.
Demo account settings
Select trading platforms from MT4 and MT5, leverage and balance.
Notes for demo contest
If you want to participate in the demo contest, please read the following carefully.
- Only MT4 demo contest dedicated account can participate
- Cannot participate with MT5
- Margin starts at $ 10,000
- Leverage cannot be selected in the demo contest. Fixed at 1:200
Leverage is not displayed on the account opening screen, but it is fixed at 1:200.
The point is that it is a contest, so the conditions for all participants are unified.
Demo Account has been Opened
Your demo account has been opened.
Please find the e-mail containing the login ID to MT4 / MT5 and the server name to login to MetaTrader.
You can download MetaTrader by clicking the link in email.
Then click the link to download MetaTrader and install it.
How to Install and Login to MetaTrader
If you haven’t installed HotForex MT4 and MT5 yet, please refer to “HotForex MT4/MT5, How to Install and Login” for PC version of MetaTrader, and for mobile app, refer to “How to Install MT4/MT5 Mobile App” and install MetaTrader.
After installation, you can login to MetaTrader by using login ID, password and server name that was informed by email.
When you login, the margin is already set, so you can trade with demo account now!
Make good use of the demo account to get used to trading and verify the trading environment.
I recommend that you make sure before opening a real account.
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