No encouragement of sound money management
A demo account comes with a large amount of money deposited in it. Most of the time, a true beginner does not have a large amount of money to trade with. The amount of money that is usually deposited in demo accounts ranges from $50,000 to 100,000. These large amounts set up a psychological expectation to make large amounts of profit easily. This can encourage excessive risk taking once you switch to a live account with real money. The big difference is, when you have a live account and lose, it’s for real.
Opening a forex demo account can teach you a lot about trading. They allow you to learn to trade without putting your money on the line. This can be a big advantage if you are a true beginner. Make wise use of availability of demo accounts and practice trading before committing your money.
I agree with u partially.
Demo account practice is very helpful but it is no where near live experience. With demo account, traders are tension free and usually trade carelessly. Execution is very quick where is incase of real account, execution is a bit laggy.
Topic says something else and thread says something else. Demo account is definitely good option for beginners and it is available at no cost. But where is "no encouragement of sound money management"?