There are so many forex brokers out there and most of them have free forex demo accounts which you can easily download and use for about 30 days. Many believe that demo accounts are useless because they don't give you a right idea about real forex trading. I would disagree with that point of view, though. First of all, forex demo accounts are important for the newcomers.
With demo account a freshman trader can come up with his own forex trading strategy, practice his skills and continue to self-educate. It might be true that demo accounts give you a false sense of security. But then it is your responsibility to understand that a pretend trade is nothing compared to the emotional adrenalin you get when you forex trade for real money from your own paycheck.
Not only newbie can profit from forex demo account. Both newbie and a professional forex trader can learn how to actually use the trading platform of the selected broker via demo accounts. It is never a good idea to start trading for real money without knowing which button to press to get the charts, where to see the currency rates, how to track your account history, how to execute, make or close the trade.
The last thing you want to do is to go over a long list of Questions-Answers or franticly wait for online support to help you with a simple trading task. Forex market is fast – it requires a fast reaction from your part. If you don't know how to operate your trading platform, you are simply screwed. So, yeah, I am very pro demo account. Practice everything you can possibly think of with your forex demo account before you even consider a real live account.
Another beautiful thing about demo account is that you can make mistakes and watch what happens!! You can analyze your actions, set ups and carts without freaking out about money being lost. I would even suggest making mistakes with demo accounts and taking losses! It will teach you about risk management strategies which are crucial in forex trading.
What is a demo account in forex?
Are forex demo accounts accurate?
How do I open a forex demo account?
- Open forex a demo account.
- Get account number and password.
- Download MetaTrader 4 and log in to it using the received data.
- Start forex trading on demo account.
Do I need a broker to trade forex?
Can I withdraw from demo account?
The bottom line is that forex demo accounts are free of charge and it didn't hurt anyone to open one yet!!