Our today’s topic is on how a Forex trader may open a Forex trading demo account, the demo account is sometimes known as a practice account and this two terms are interchangeable so you should be not confused. Based on this typical question of “opening an account”, we will specifically concentrate on ways on how to open a free practice trading account or a freeForex demo account and with this account you should always remember that all the profit or losses that you will be generating with your account , it will be reflected as a demo not real, the profit or losses that you will be making will be displayed on your online demo Forex trading account that will be assigned to you upon registration and you won’t be able to withdraw that amount and also with a demo account you are not required to fund your account.
WHAT ARE THE REASONS FOR AN ONLINE FOREX TRADING DEMO ACCOUNT?
Most of the Forex brokers allow Forex traders to use their demo platform to encourage them to understand the market before they can commit themselves with real trading; Forex traders are being offered with this opportunity to understand the platform, market movements, graphs and other Forex trading terms. With this you will be offered a specific amount ranging from $50 000 or more , however this will always differ from Forex brokers, the money that they will be giving you will only be used in the demo account assigned to you only and will not be transferable in what so ever reasons.
WHAT ARE THE BENEFIT ON USING A FOREX TRADING DEMO ACCOUNT?
- Is to obtain , acquire more skills and knowledge in Forex trading
- Is to teach the user to understand the platform (both web trader or a Meta trader or others)
- Is to understand how to open and close trading positions
- Is to understand and interpret the technical or fundamentals information
- Is to understand the usage of money flow and leverages
- Is to understand the deposit and withdrawal process
- Is to understand all types of Forex trading graphs and charts
HOW TO PREPARE YOURSELF ON USING A FOREX DEMO ACCOUNT?
Going to war without a proper training may be very risky; you might get killed or sometimes get injured. Going to war needs early preparations, you have to understand your opponent or enemy fully before you can approach him and this also applies in the Forex trading market, Forex traders have to consider the market place as not their friend but their enemy, you need to understand all the market movements before you can use your hard earned money to trade on a real account. Trading on a demo account for longer may bring some proficiency to you.
HOW TO OPEN A FREE FOREX TRADING ACCOUNT?
Most of Forex traders a so skeptical when it comes to how to open a free Forex trading account? First of all you have to search for a registered Forex broker in any country of your choice, some people prefers trading only with local brokers or banks so that when they experience problems they can quickly visit the broker personally. When you have made a choice of your country you will then have to choose for a Forex broker that you feel most comfortable and safe to trade with, to make it very simple you may even check on google for different Forex brokers reviews other traders have and you should also check to things like the type of spreads they offer, the starting amount to trade with, the platforms they use and how helpful is their customer support and so on. Most available brokers are online and upon opening your free account with them you will be asked some personal questions and also to complete the registrations forms, so don’t feel annoyed with this, it is part of the process and during this process you will be issued with your user name and password to access your Forex demo account.
HOW MUCH IS REQUIRED TO FUND YOUR FOREX DEMO ACCOUNT?
The majority of Forex brokers will charge nothing to you in order to use their demo trading platforms. They know very well that on understanding their demo platform you are likely to start trading with them on a real account. You should always remember that the more people these Forex brokers have then the more money they will benefit from spreads and others revenues.CLICK HERE – LOGIN TO OPEN A DEMO NOW
HOW LONG SHOULD I TRADE ON A DEMO ACCOUNT?
Most of the Forex brokers usually give their new traders up to 30 days grace period to use their demo platform, however this is not compulsory since you may still communicate with them should you feel that you still need some more time to practice. We always advice new traders to go on a live account when they feel ready to do so, it is not so difficult to notice that you are ready, you will always see this when your demo account increase in value.
WHICH IS THE BEST FOREX DEMO MARKET TO TRADE ?
Choosing the right product to trade is a very challenging situation for many Forex traders, most people trade markets which they think will be more profitable for them rather than trading what they understand better, trading markets that you understand better is more better, you can’t trade indices when you have no knowledge of them, it will be better to trade currencies if you understand currencies, with this your will increase your chances on making profit. There are a lot of products to choose from but since you will be trading on a demo mode then you will likely to test many products as possible in order to find out which will best work for you.