A lot of people ask me how to start investing and my first advice is always to use a Virtual account first. Here is why.
If you never traded stocks or CFDs before the best way to learn is to actually do it. But before putting real money at risk get yourself one of those free accounts and learn how to use the platform first ( check further below to see which one I am using) .
Use it to learn not play
It is important that even if the money is not real that you treat your account like it is real. There is nothing wrong with testing but please don’t put $20000 into some odd stock just to see what happens. Think of it as real money and try to make a Profit. The virtual money is there to learn the ropes so you feel comfortable with your decisions.
Choose the currency or stock you want to trade wisely and do your first purchase. The good thing about using virtual accounts is also that they show you the cost of a transaction.Trading isn’t free and almost every trade (buy, sell etc) you make on a broker platform has a charge. With a virtual account you can learn those things before putting real money at risk.
As the name says this blog is about Social Trading and I am a big fan of it myself. Check my other blog to learn more about social trading in detail. But basically it is investing alongside other successful investors. Platforms like etoro allow you to simply copy a trader and earn when they earn. You can also do this in the demo account and I strongly suggest you do so.
How to get a virtual demo account ?
I personally use eToro and that is also the account I highly recommend. You can sign up for a free Etoro account here and all you need is a email and a phone number. For the demo account you won’t have to register anything else.
After you are logged in select virtual account in the left side bar and you are ready to go. Etoro provides you with $100.000 in virtual money that you can use to learn the ropes.
I would suggest to follow some of the traders you found interesting or acquire some of the shares you were planning to buy before. Check in again after a few hours, days or even minutes ( especially for currencies ) and see how you are doing.
Have fun. And only deposit real money if you feel comfortable with the platform and your investment decisions. Keep in mind your money is at risk and past returns don’t guarantee future earnings. Thats especially true for volatile currencies like bitcoin.