Forex is the most liquid and rapidly growing financial market in the world, where the exchange of world currencies takes place. Currency operations can be performed 24 hours a day, five days a week. With the advent of special programs (such as Metatrader 4), the mass spread of the Internet and the development of available brokerage services, almost each and every interested person got a possibility to earn money on fluctuations of rates, placing a bet on raising or lowering of the price of a financial instrument; all these have led to a huge increase in the number of private traders and investors all over the world. All fans of Apple's operating system also got the chance to trade through the MetaTrader terminal for Mac. While you are reading this article, thousands of people around the world have opened trades totaling $2.7 billion. Many of these positions will bring tens and even hundreds of percent of profit to traders. However, to start trading on Forex one does not need a huge account balance. You can start with both $200 and $20,000. Almost everyone can master the skills of currency trading, and to join the ranks of traders you and your friends will need only a computer and Internet connection.
Obviously, if you are a novice trader you will need some basic knowledge about the platform (at least) so you can open your first profitable position. Many brokerage companies offer a demo accounts for new clients with virtual capital but real trading environment. It allows a potential client to familiarize with the trading terminal and its different properties, before being ready to open a live account with real money deposited. From the perspective of the client, it is the best way for a beginner to explore trading. The demo account's functionality is similar to the real account one with the exception that you trade with virtual money.
It is the best way to learn how to trade with MetaTrader 4 because it allows you to use the trial and error method without any risk to lose your own funds and if you are not sure whether Forex trading is something you will like or will be able to master, open demo account, see if it`s interesting and suitable enough for you to devote your precious time to.
We must say that demo account can be useful even if you are an experienced trader. For instance, you have already mastered trading with currency pairs and think of trying to work with European stocks, you can practice CFD trading on MetaTrader stocks on demo account before going for real trades on something you haven`t used before.
Trading any assets from FOREX to stocks is always risky, especially if you have no idea what you are doing. The chances to earn money and to lose it are pretty equal and when you add a leverage to the equation, you risk losing more money than you initially deposited in your trading account. The training account will help you to understand that leverage is a double-edged sword – on the one hand, you may get huge profits and, on the other hand, you can lose it all in a split second because if the market moves against your trade enough, it can take your account balance negative.
Thus, practicing on demo will give you the general idea of what it like to trade and how the financial markets actually work.
Apart from getting used to the trading terminal, which is essential, practicing on demo will allow you to build your trading skills and test and adjust any of the strategies you might have, with none of the risk.
In addition to all abovementioned, trading on demo with this or that company will allow you to try all the other services offered by the broker, e.g. promotions, educational center, the quality of the customer support. So, when you shift to a real account you will have the clear picture of what the perfect broker should be like and whose trading conditions you like more.
However, keep in mind that it doesn't substitute the importance to develop the qualities that will make you a successful trader: self-control, humbleness and a tranquility.
How to create a demo account for forex trading
You can create a demo account in two ways -
The first one is directly on your brokerage company`s website:
Go to the https://paxforex.org/ and fulfill the demo account subscription form right on the Home page
After that email will be sent to you with the login information
Use this link to download the MT4 terminal https://paxforex.org/metatrader4/download_MT4 and once it`s launched login to your account with the credentials from the email
Go ahead and test the platform
The second option to open a demo is via the MetaTrader terminal.
Go to “File” and click “Open an Account” on the list appeared
The window will appear suggesting you to select the type of account – real, demo or login to active one. You don`t need to do anything because creating of demo account is ticked automatically.
After that you get the form where you need to fulfill your personal information required for opening an account – name, email and phone number. Once you are done, you have to agree to terms of use by ticking that on the bottom of the window and then click Next.
If registration is successful you will see the window notifying you about that and the account information – personal information, login details, investor password, amount of the capital and the leverage.
How To Choose Best Forex Demo Account and What Features to consider?
Since Forex is such a huge industry, it makes sense to choose carefully from the available brokers online. The choice of Forex broker should be taken very responsibly, otherwise you risk getting into some doubtful company and your first trading experience will be very unpleasant. It is important to understand that your future success fully depends on the brokerage company you choose: it provides a platform for trading, it is responsible for execution of orders, gives the opportunity to make a deposit and withdraw the money earned, guarantees the safety of your funds in accounts, and so on.
There are a number of key features to consider when choosing a Forex broker.
First of all, it is necessary to pay attention to the age, that is, how long the brokerage company works on the Forex market. It is impossible to say categorically that all young brokerage companies are unreliable and doubtful, but in order to avoid cooperation with companies from the black list of brokers and one-day companies, it is necessary to learn about the experience of the broker in the Forex sphere. The longer company has been in the business, the better.
One of the most important aspect in choosing a demo account for currencies is the platform(s) provided. Traders, as a rule, stick to a certain platform, especially MetaTrader 4 or cTrader, hence there is no need for you to get acquainted with one platform, and then to start live trading on another one. So, if you want to trade on cTrader mainly (99% of brokerage companies work with MT4), this will be your starting point. And if we are talking about novice traders, platform must be user friendly– there are a whole host of trading platforms on the market, some more complicated than others. As a beginner trader you will not need a complicated platform with features like Expert Advisers and complex trading strategies. That comes later, but now you should be looking for a platform that is fast and simple to grasp. The second important thing is the demo account functionality, which will correspond to a live account, such as leverage, guaranteed stops and spreads. The third aspect is the execution speed, which helps traders to place fast trades with reduced slippage in markets with higher volatility. The last essential aspect is the date of the demo account expiry. In some companies demo expires after 30 days, some after 90, and some have no expiry. It is better if you have unlimited access to the demo account for practice trades. This is particularly useful if you are new to the world of Forex trading or if you’d like to test-drive a broker’s platform before you trade for real.
For beginner traders there is one more important feature to look for - comprehensive trading education resources – many brokers supply a suite of education materials to help push traders into mastering their skills. These usually include webinars, videos, courses, guides and articles about the basics of Forex and some most common trading strategies.
So, considering the abovementioned aspects, it is better to open a demo account with the company where you are planning to open a real account in the future. In such a way you will not have to experience the agony of indecision again looking for another broker.
However, finding best place to create a forex demo account on your own will definitely require whole lot of patience and deduction since this results in opening several demo accounts with different brokers and testing them all separately.
To help you Taking into account all the key features, you should consider PaxForex as the best broker for you to take your first steps in trading. And here is why -
The company has been in operation since 2011 and with a decade of experience, PaxForex has grown to become a leading broker with a huge client base from over 150 countries. PaxForex offers forex, share CFDs, indices, metals and commodities for trading on the MT4. Taking into account that company has been in business for such long period of time, we can definitely say that it is a factor that ensures its reliability and transparent trading conditions. Clients can choose from 4 account types called Cent, Mini, Standard and whose account currency can be USD, EUR or GBP (except for Cent account, it can be of USD only).
Also, company provides a number of different bonuses and constantly organizes campaigns to maintain customer loyalty and attract more new investors.
PaxForex broker's safety and impeccable trading activity is supported by highly qualified customer support service, so each registered member (even those who have never traded on live account) can ask for help or ask a question at any time he needs additional information. It can be done by email, live chat, or phone. Support services are available in several languages.
Apart from that, traders can enjoy
- High leverage up to 1:500
- 50+ currency pairs including major, minor, and exotic ones
- Competitive spreads
- Low minimum deposit requirement
- MT4 trading platform
- Fast execution speeds
- Islamic Forex Account
Conclusions on Forex Demo Trading
Demo trading on the financial markets may be an effective way to train with no need to take a risk which may lead to the loss of the whole deposit and your temper. And it makes no difference if you are a new trader aspiring to learn the basics of forex trading in conditions close to real ones or if you are a seasoned forex trader looking for a new broker with better conditions or order execution or just want to test a new strategy you`ve recently heard about. Demo accounts are here to help.
Of course, it makes sense to avoid some of the most common forex demo trading drawbacks, like developing bad trading habits and unrealistic expectations based on different risk parameters and capital sizes because some traders practice with 10k on demo and then move to real account depositing $200. It is pretty obvious what happens to this account, right?
Apart from that, the spreads and the order execution provided by broker on practice accounts may crucially affect the results you get in your demo trading.
Nevertheless, if some of the drawbacks of working with practice accounts seem unappealing enough to counterbalance the advantages in your particular situation, then opening tiny test positions in a real account might give you a more authentic perspective on the real trading results you could rationally foresee to get.
Once you have mastered the trading platform and fell ready to move to live trading, you can concentrate on your trading activities and trade more confidently thereby increasing your chances of success trading the market.
We are one of the fastest growing Forex Brokers in the Market. Trade with PaxForex to get the full Forex Trading experience which is based on...
- The Reliability on all Assets in the Market
- Trusted Worldwide for over a Decade
- Live Multi-Lingual Online Support 24/5
