A Forex trading demo account is actually a dummy or virtual account that embeds all the characteristic features of live trading account. The funds kept in this particular account type are not real. One can open this account type with any brokerage firm that supports MT4 trading platform. You will get the actual experience of the real market scenario and able to refine your trade strategies.
Unlike any other industry type, one must have the knowledge of Forex before they can commence trading. Theoretical knowledge is important and it is equivalent to reading a book titled “How to learn Swimming”. So in order to make the most out of Forex is to apply the theoretical knowledge into a reading account. But before one does that, one must have access to a demo account to get the real feel for the financial market.
Top 3 Brokers Offering Forex Trading Demo Account
If you are looking forward to getting Forex trading demo accounts, you can open an account with any of the brokers mentioned below. These merchants are one of the top 10 brokers in the financial market and have a long glorious history of high-quality service and great customer care. A brief overview of the brokers is mentioned under the following headings:
- Plus500 – It is a highly reputed broker which was established in 2008 and its headquarters are located in London, UK. Demo account is available for every trader with no limit on time. It means that you can practice this account type without any expiry period. You will get access to all types of trade platforms offered by the merchant with an option to trade in different types of assets.
- easyMarkets – It is yet another reliable broker that has taken the market by its sheer diligence. It is regulated by agencies like CySec, CFTC and ASIC. It has offices in more than 160 countries across the globe. With its demo account, you will be able to place trade across 175 different financial instruments and across 2 types of trading platform. Customer service is pretty satisfactory and support is made available in 15 different languages.
- ThinkForex – It is a fully regulated Forex broker that is known for its low-cost trading, fast trade execution and multiple funding options. It is an ASIC regulated firm that offers 2 different type of trade platform namely MetaTrader4 and CTrader. It has a myriad asset index with spreads starting from 0 pips. The payment service is pretty impressive and offers the highest range of security with its 3 layer socket technology.
How to Use a Forex Trading Demo Account
This particular account type has become extremely popular in the recent times for Forex trading. It equips one to go online and see how their account will work without any kind of risk or investment. One’s account will be filled with virtual money that can be used to buy and sell assets in an un-real market environment. The software it uses is very accurate and it is extremely beneficial to find whether you will emerge as a winner or loser at the expiry of a given trade. Almost all the popular and legitimate brokers are offering demo account to its customers. Before you start, you will first need to find one such broker and register to its official site. There would be an option to open a demo account where you will need to give personal information. It takes less than 5 minutes to setup this account and you can get started. The virtual money can be as high as $10,000 and it will be deposited in the account and it comes with an expiry period of 30 days.
Getting Started with Forex Trading Demo Account
- Software Installation: Search for a legitimate broker that offers a free demo account. Access one such website and download the trading platform software to commence trading.
- Trading Account: Once you have registered with the broker concerned, you will receive an email with username and password. You will get additional info on your demo account usage and other system details.
- Dealing Rate Window: You can then access to dealing windows where you can find the exact exchange rate for different currency pairs like EUR/USD etc. Every currency pair is noted by its 3 letter abbreviation.
- Sell and Buy: Beside every currency pair you will find 5 digit numbers. The 1st currency in the pair is called base currency that can be used to buy secondary currency or sell the base currency.
- High and Low: It actually refers to “bid” and “Ask” rate. Bid means currency purchase while Ask means selling the currency. If you want to buy a given currency, you will place a Bid and if you intend to sell, you will place an Ask.
How to Get the Best Results with the FX Demo Accounts
If you are beginner then this account type can be a passport to success and stardom in the FX market. It is an extremely valuable asset that can provide you with an invaluable opportunity to learn the market and sharpen the trading skills. Since you will be dealing with fake money, there is no investment required and you will not incur any sort of financial loss. In order to make the best use of this demo account, you must follow the guidelines mentioned below:
- Practice: If you are really serious about making money online, then you would have to study a lot and use it in your trading. Theoretical knowledge is not always good and what you need is practice. Try placing as many trades as possible with the demo account until you start feeling confident.
- Develop: This account type will help you refine and polish your existing trading system without risking anything. You should be able to generate your own style or personality because every successful trader has one for themselves.
- Robot: If you are eyeing on a given FX robot because it promises you a good return on investment, then there is no need to worry about. All you need is to open a demo account and you will be able to know how it is working. Once you are satisfied, you can go ahead and risk your money.
- Trade Platform: With this account type, you will be able to explore different types of trading platform. It will give you the flexibility in the long run and provide you with confidence to switch from one platform to another one without any kind of problems.
Facts and Warnings
It is to be noted that this account can only be used for a demonstrative purpose and nothing more. It does not guarantee that the success you made during demo trading would be similar when it comes to trade live. But with regular practice, the industry experts are of the view that one’s skills are polished and are able to deal with the market conditions in a better way. Personality, discipline, psychology, attitude and mindset can make or break the career of a Forex trader. None of these qualities is tested through the demo account. You would not be able to become a successful trader with a demo account but you will inherit the following characteristics and other traits mentioned below:
- You will be able to recognise your trade personality
- You will become disciplined in your approach
- You will develop the psychology behind trade
- You will have the right mindset and attitude
- You will be able to make better trade decisions
Things to Focus on
If you are venturing to explore the FX market then it is imperative that you get a demo account for yourself. It is a free tool that is offered by the brokers to get one acquainted with the trading platform and sharpen one’s trading skills. Before you start using this particular account type, there are certain things you need to pay attention. The same is discussed under the following headings:
- No matter what kind of assets you are trading into, you must have a plan and proper call to action. If you don’t have any strategy you will panic when it comes to trade live. The market will provide you with new opportunities and you should be able to learn how to exploit them for your own benefits.
- With this account type, try to learn the different types of market orders. This knowledge will come in handy during live transactions and you will be able to avoid the possible pitfalls. At the same time, it will make you immune to making losses in the market.
- It is a blessing for anyone who is new to the market or does not have prior experience in FX trade. You should try to make the most out of this account type and try to learn the political and economic circumstances that can change the market conditions.
If you are really fantasising to make a career in the FX market, then it is high time you get a Forex trading demo account for yourself. It is free of cost and is offered by the brokerage firms to encourage investors to learn about the trading platform and sharpen one’s skills before they are prepared to trade in the live market scenario. It will be able to nurture confidence and give them the feel how the market operates. One needs to practice a lot and develop their own style in due course of time. This account is mostly suitable for those people who are new to the Forex market and want to make a steady career in it. Just sign up with any of the brokers mentioned above and open a demo account. Once you are satisfied and ready to go, you can open a real trading account and start placing a trade in the Forex market.