What is a Demo Account and How do I Get One?
Forex Demo or practice accounts are free. You can open one quickly and easily.
Demo accounts have $100,000 in virtual money which you can use for trading right away. You can trade any instrument (currency pairs or CFDs on shares, indices, etc) from your account with live market quotes. It’s exactly the same as trading on live markets, but with virtual money.
Trade on the Financial Markets
Demo accounts are a great resource if you don’t want to invest and risk any money at the beginning. With a demo account you can place trades as you normally would when trading with real money. All the losses and winnings are virtual, so you can trade with peace of mind. You can place different order types and understand how they work. Once you gain enough confidence and you understand the markets it will be easier for you to switch to a live account.
Learn at Your Own Pace
With a Forex demo account you have all the time you need to learn the specifics of each market. For instance, you can choose to open just one position and wait to see how the price will change over time. Comparing your predictions with those of financial analysts and technical outlooks are just some of the many things you can do while observing market trends.
If you’re an experienced trader, opening a demo account will help you get used to the functionalities of the trading platform. There are many charts that come in various formats and each of them could give you a different look at what is happening in the market. Additionally, trading platforms offer a lot of trading tools and features that have to be mastered so you can use them to your advantage.
Develop a Winning Strategy
There are many trading strategies and professional traders are already familiar with all of them and have picked the one that best suits their needs. Terms like swing trading, turtle trading, scalping, trend trading and breakout trading may sound intriguing but you would not want to risk and execute them directly into your live account. By practicing on your Demo account you will be able to execute those strategies and find the trading techniques that work for you. Practice accounts also enable you to modify these strategies and to experiment with them without the risk of losing money.
Participate in Forex Demo Contests
This is a great incentive for traders to open a demo account and show their skills to the world. All you have to do is register for one of the contests and open a demo account. At the end of the contest the top participants who have made the highest profit become the winners and earn money that is funded into their live accounts.
Overall, Forex Demo accounts are probably the best tool to learn how to trade online. They are free, fully accessible and allow you to place orders with virtual money. Once you become comfortable with trading, you can proceed with opening a live account.