How to open a Forex demo account?
The currency market offers enormous opportunities to quickly profit. However, a thousand wins on the Forex market correspond to a similar, if not greater, number of defeats. To avoid mistakes that result in losses and clearing your account, you need to gain experience and develop some original game methods. What is the best way to go about it? Through training on a demo account, which helps improve your trading skills.
The Forex market is a complex system of dependencies, and the exchange rates of individual currencies are influenced by various factors, such as an increase in interest rates in a given country or summit meetings in which important politicians participate. When playing Forex, you must also take into account speculative activities and constantly analyze the trends emerging from the charts using trading tools. When he is a novice player, it is really difficult to understand thousands of threads of the currency market and financial instruments or the functionality of broker platforms.
It is really unreasonable to get into the game without baggage, using your savings, for example. It is advisable to play on a demo account during the first few months or opt for a solution such as Forex signals that allow you to operate on the currency market without the need for deeper analysis.
Which Forex demo account is the best?
The absolute basis is that the demo account be completely free, which is a rather popular practice among brokers, although sometimes you can also come across paid options that are not worth using. The second issue is whether the given Forex game simulator provides players with all functionalities that can be used by traders with professional accounts. These are mainly analysis tools (such as MetaTrader) and various financial instruments that allow you to change the parameters of your transactions. It is also important that the demo account is set up on the same platform on which you plan to play a professional game, because it is definitely a more convenient solution, because learning new tools from scratch is not very comfortable. There are many different types of brokerage companies on the market, the most popular being MM, STP and ECN. The most professional platforms are ECN (Electronic Communication Network), thanks to which you have access to the full Forex market, and not just to a slice of it or a small, internal market. Of the ECN brokers, the company BDSwiss is very popular, allowing you to set up a demo account with access to all functionalities that can be used when running a professional account.
Creating a Forex demo account
If you decide on BDSwiss, for example, you should first try your hand at running a demo account. Its establishment is child’s play and lasts only 30 seconds. Just enter your data and approve the regulations to start an exciting adventure with the Forex market. Having a demo account on the BDSwiss platform, you can not only use a variety of tools, but also rework prepared courses that will help in understanding the operation of the currency market.
In the first months of playing on a demo account, it is worth gathering knowledge about the operation of financial leverage, pips or lots, learn the basics of technical analysis and start thousands of transactions to see what turnover they will take and whether they end up in profit or loss. The training period also allows you to create game plans and preliminary strategies. Such preparation and experience will definitely pay off when the player decides to “trade seriously”. Specialists point out that when playing on a demo account, a person is not accompanied by emotions that can disturb decision making when using a professional account. Trading, which is not accompanied by great emotions, teaches you how to play logically and not make hasty decisions with the first decrease or increase in the rate.
When is a demo account not enough?
An important moment for a still novice player is the transition from a demo account to a professional account, which is a form of solemn entry into serious trading on currency markets. Some experts say that the trial period should last a maximum of several months to learn the basics, and practice should be gained by using real money. However, everyone should focus on their own intuition and set off into the wide waters only with full readiness. The results achieved on a demo account can be an indicator of whether you are material for a serious trader. When during the training period usually transactions ended with a profit, it is worth joining the game using real funds, because it is quite painful when you earn a lot of money on the simulator, and you can not withdraw for anything because they are only virtual.
Along with joining the game on a professional account, in addition to analysis and your own types, you should also be interested in other aids, thanks to which trading can be much more effective. One of the elements that really helps in achieving better results on the currency market are Forex signals. These are specialized hints prepared by traders with many years of experience, which are obtained through the Whatsapp application. Signals with one of the highest effectiveness are those prepared by a group of enthusiasts who ate their teeth on currency markets.
Traders gathered around Forex Kings deal with daily, many hours of analysis of exchange rate changes and Forex situation, which allows them to find gaps on the basis of which are created guidelines for profitable transactions with low risk. The signals contain information on the type of transaction and on which levels to set TP (Take Profit) and SL (Stop Loss). Forex Kings in their predictions can boast of very high efficiency, which reaches as much as 87.31%. If you are thinking about large money earned on Forex, you should first practice on a demo account, and then switch to a professional account, where the game is easier thanks to in-depth market analysis and effective signals.