The forex trading industry is vast; it can engulf new traders in its depths only to throw them out of the game unceremoniously. Only a few actually manage to master it and write their own fortunes. And those few are the ones who play their cards right and don’t dive into the FX market without a clue as to what it’s all about.
Since forex trading is carried out on a decentralized market, brokers offer varied trading platforms with their own price feeds. It is vital to test the features and idiosyncrasies of the software before putting real money on the line. Failing to do so will eat up your investments faster than you can think. This is why; it’s advisable to trade on a forex demo first, before committing real funds to your account.
What Is A Forex Demo Account?
To put it simply, it’s a trading account that mimics the live trading scene and gives traders a feel of the real market conditions – but in reality, it’s all simulated. It gives you an insight into the market but removes the element of risk while doing so. It is often considered a mandatory step for traders to practice on a demo account before trading live.
The Perks of Opening a Demo Account:
1) Trading With Virtual Money
You can invest just about any amount you want and open positions as large and as small as you want – all with fake money. While it simulates the feel of trading with your own investments, there’s no real money involved and any profit or loss you make is virtual.
2) Knowing Your Broker
Any forex broker can make tall claims. The only way to test those claims is to open a demo account with them (if offered). At WesternFX, we believe in maintaining transparency in everything we do and provide a free demo trading account that mimics a live account. This can be used to get familiar with our offerings.
3) Familiarizing With The Platform
Have you ever traded on the MetaTrader 5? It’s considered the universal platform for trading in the forex exchange. However, it does have a learning curve, and the only way you can master it is by practicing on our demo account. It can help you understand the platform’s functionality and learn how to operate it before you use the real one.
4) Finding Your Style
No two traders trade in the same way. Practicing on a demo account first will allow you to test out several forex trading strategies and find those that suit your style. You can quickly move on, learn from your mistakes, draw a better plan, and test it out.
5) Gaining The Experience
Experience can make you a better trader – and a demo account is a good way to learn how the markets work and gain valuable exposure that can aid in driving better decisions. The more you practice on the account, the more experience you get and the better your trading performance becomes.
So, what are you waiting for? If you’re new to the forex market, it’s time to get started with a demo account. Open it for free with WesternFX now!