Forex Demo Account - The Best Way to Start Trading Forex
Most Forex brokers would allow their customers to experience what forex trading is like by offering them to play with fake money on Forex demo accounts. As the majority of people who get interested in forex are willing to make fast profits in this huge market, a demo account is the best way to see if their wishes and expectations about Forex market are realistic. On a demo account a trader is given a certain amount of 'play money' that he can trade with under real market conditions.Let us look at the advantages of trading on a Forex demo account:
1. It helps you to decide which platform and broker you are most comfortable with. Some Forex trading platforms are very simple, others are more complex, yet others are very difficult to use. I remember once calling a Forex broker about closing one of my orders on a Forex demo account and a person from the support team could not help me. He had to search for help himself and call me back later. Most Forex brokers include lots of useful features on their trading platforms such as: live news, technical indicators, daily market commentary, even rumors about some big banks buying some big positions in a specific currency pairs. Some brokers allow you to trade only standard lots, others offer you mini lots and there are those that can allow you to trade micro lots or even separate units (buy or sell one dollar in the market).
2. It helps you to learn trading without losing a dime. That is probably one of the most important features of a demo account. You can risk and risk and risk again and do not lose any real money. Trading Forex, like any other kind of trading is very risky and can cause you lots of stress and loss of capital. This you can avoid playing with a Forex demo account until you learn how to trade. Burn your demo account as many times as you want and learn how to trade. You can test your trading strategy, perfect it and trade it on a demo until you feel comfortable and then jump to a real account.
3. It helps to test automated trading systems. Perhaps you have no intention to trade on your own, but have software or a robot that is going to do this job for you. There are lots of services online that can offer you their automated systems or trading robots to trade on your behalf. However, it is better to be safe than sorry. You have to try them to see if they really work as their creators claim. If they do, you will be even happier, as you will not have to invent a system that could bring you consistent profit.
So, if you are planning to open a real Forex account be sure you have tested your trading skills on a free demo account. Almost all Forex brokers will give you this service and they will gladly answer your questions concerning other questions connected with Forex trading.