Forex Demo Account

Foreign exchange

The best way to learn to trade is with a forex demo account. There is no need to risk your capital learning forex. A forex demo account will let you learn what moves the markets by trading with imaginary currency. Many of these free accounts use real time market data so you can follow along with market news and events. You can experiment with levels of margin to determine what the best risk reward ratio is for you.

Since forex demo accounts are based on the broker’s regular platform you will learn all the features they have to offer before risking a dime. Test out various strategies, learn what a safe distance for your stop loss orders is or, try out a carry trade strategy. Forex demo accounts can also be used after you are live trading to try riskier trades without risk.

When selecting a brokerage to get a forex demo account make sure they can meet your needs. Many brokers only do full size contracts (100,000 units of currency) which means even leveraged 100:1 you will still need considerable cash on deposit for even a single trade. Not to mention trading at maximum leverage is … well stupid. One small move against your position and it will be stopped out.

You may want to consider a broker that does mini contracts (10,000 units). This will give you a lot more flexibility and remove the need to use excessive leverage. One really important news item and, currencies can easily move 100-200 pips in minutes or even seconds.

Another consideration is what is the brokers minimum deposit and how can you get your funds back out of the account once you have profited.  These are just some of the considerations when selecting a broker. Always take your time in learning forex the rewards can be huge but, so can the losses if you are too hasty. I hope this article has helped you in figuring out what you need to look for in a forex demo account.

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