Warming Up with a FOREX Demo

A FOREX demo account can be a very valuable asset to your trading. With a demo account, you can practice without risking money. Many other markets do not have demo accounts that are as realistic as they are in the FOREX world. If you are considering getting into FOREX at all, you should definitely start out by demo trading.

How Demo Accounts Work

Nearly every FOREX broker out there offers some sort of a demo account for their services. You can simply go to their website and sign up for a free demo account in a number of minutes. They will direct you to a link to download their trading platform. Most of the time, you will be able to decide between a few different trading platforms with each broker. The brokers will usually have their own trading platform as well as the popular Metatrader platform. Their own platform will be unique to that broker while the Metatrader platform is uniform regardless of the broker. 

Once you download the platform, you will then fill in your information and get a practice account with the broker. You will be able to decide on how much fake money you want deposited into the account and then you are ready to start demo trading. 

Why Demo Trade?

Demo trading is essential when you start trading with a new strategy. If you have never traded FOREX before, you will definitely want to open up a demo account before you go live. Trading FOREX is a very risky proposition and you want to try it out before you put real money at risk. 

A demo account will allow you to simulate your trading method as realistically as possible. With the demo account, you will get real-time price information and instant execution. You will be able to trade exactly like you can expect to trade when you go live. Therefore, demo trading provides a realistic environment to test out any trading strategy. 

You should never trade with a live account until you try it out on demo first. Until you can consistently make money on your demo account over a sustained period of time, you should not even consider going live. If you cannot make money on your demo account, then there is no way that you will be able make money on a live account. 

What Can You Do With One?

You do not have to worry about having limited options with your demo account trading. You will be able to do anything that you could do with live trading in your demo account. If you want to test out an expert advisor on your Metatrader platform, you can easily do so. If you want to try out a new signal service that relies on pending orders, you can even do that. You have just as many options with your demo account as you do with a live account.

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