So, you are new to Forex trading, or maybe still considering whether this is the right form of trading for you. You have finally made up your mind and decided that Forex Trading is something you can do. However, before you start trading with real money it is always a good idea to try out your skills first with something known as a demo account or a free practice trading account.
Demo Forex trading accounts enable you to carry out trades with virtual money, using a real-time FX price feed – just as if you were using a live broker. Furthermore, the great bonus of demo accounts is that they allow you to execute your trades in exactly the same way as you would with a real-time account, allowing you to familiarize yourself with the tools and features that are available.
In addition, if you have decided on which broker to use before going live – it is well worth opening a demo account first – so as not to waste your time testing out different platforms. The best Forex brokers all offer free demo accounts, which are ideal for getting to grips with the ins and outs of the platform.
So, what is the importance of Forex demo Trading?
The majority of brokers offer a free demo account – allowing you to take advantage of this feature before signing up to one in particular. You can invest as much or as little time as you like learning the ropes, without being under pressure to succeed.
There is currently 100+ internationally recognized currency pairs available for Forex traders to trade on – with many different expiry times available. Demo accounts will allow you to practice your strategy with all of these options before committing yourself to a live account that only covers one or two currency pairs.
There are literally hundreds of trading platforms available, which offer different tools and features – with no two platforms alike. Demo accounts allow you to try out the majority of Forex brokers' software before deciding which one is best for you.
Online Forex trading allows for 24-hour trading – and demo accounts will allow you to explore this feature and learn how it works. It is very easy to get carried away with the fast pace of Forex trading, but if you are just testing things out – then there really should be no pressure on you whatsoever.