Forex Demo Account

Approximately 90% of New Investors Lose Money during Their First Year of Trading In Forex

The recent economic downturn and financial scandals have instilled fear of loss in the hearts of many potential and experienced investors. Forex has been one of the most effected markets in terms of investment and capitalization. Investors have become more risk averse and prefer trading in low risk assets.

It is a general assumption that recession leaves negative after affects that remain for quiet a period of time. However, this time it has resulted in one positive outcome that is the increasing popularity and application of Forex demo accounts.

Let’s explore what a Forex demo account refers to, who should open it, how would it minimize the risk and how important it is for novice traders in the field of Forex. In layman terms, it is a trading account that exposes you to the real time industry and allows you to test the services of the specific trading platform, before putting up any real money.

Who Should Start Off With A Forex Demo Account?

Most of us misconceive the application of a Forex demo account. It is usually thought of as a training or activation phase for the new trader, which is only partially right. Anyone can open a Forex demo account, whether it is a greenhorn or an experienced player of the financial trading industry.

Here are some of the functions of Forex demo account, according to different type of investors and trading companies. If you fit in any of these, then it is highly recommended to open a demo account first and save your hard earned money from getting into the wrong hands.

For Beginners

If it’s your first time in Forex trading, then you should definitely open a demo account. Consider this as an opportunity to learn about currency trading and the movements of the Forex market. Take maximum advantage of this trial period; test all the features of the trading market, experiment with different tools and check the efficiency of the customer support department.

For Experienced InvestorsFactors to Consider Before Making the Selection of Forex Demo Account

Search online and you will come across hundreds of companies offering free Forex demo account. Here are some tips that will help you decide the best trading forum as per your investment preferences.

Size of the Trading Account: Considering the purpose of opening a demo account, look for brokers with the maximum limit for test trading. The larger the account, the more opportunity you will get to experiment with different assets and trading tools.

Time Period of the Account: When making the selection, go for the trading account that poses minimum limitations in terms of time and funds. It is advisable to register a ‘no time limit’ demo account. This will give you ample time to test-drive all the features, before opening up a live Forex account.

Facilities for Beginners: Not every Forex demo account allows open trading in all the markets. For example, you may not get access to company’s internal analysis and briefing on the market movements. This way you won’t know how to apply business news in your trading practice.

Also, the increasing trend of ‘business on the go’ has led to the concept of trading via cell phone. Don’t you think it would give you more time to learn, if you could open and access your Forex demo account on your smart phone. Choose the one that has all the features, from real time research reports to mobile trading, enabled in demo account in case of live trading.

Summing up, Forex demo account is a great way to get familiar with the services and transaction methods of the trading company. Not only the beginners, but novice traders can also make use of it to fine tune their trading strategies. It is your hard earned money. Open up a demo account, learn all the tools and tricks of trading and then get involved in the real game of money. You can find a demo account overview in detail at FXStreet or you can visit fxcm.com to check out their demo offer.

References
Online Investments That Make Lots Of Money
Forex for Beginners: A Comprehensive Guide to Profiting from the Global Currency Markets