Forex Demo Account

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The best way to learn a new thing is in a safe environment. This is also true for learning how to trade. Most brokers offer Forex demo accounts, which let you test out the Forex market with no money at all. Let’s discuss all the opportunities that we can get using demo accounts. 

What is a Forex demo account?

A Forex demo account is a virtual trading account where you can trade with virtual funds. It’s connected to a live trading platform so it still receives real-time market data. Most Forex brokers offer a demo account upon registration.

Using a demo account means you can test the features without risking real money. Once you are familiar with the basic needs and feel you can confidently use a Forex demo account on MT4 or MT5, you will be ready to move on to real money trading.

How to open a demo trading account?

Opening a demo account is a simple process. A Forex demo account is free to open and should be ready to use very quickly.

• Most brokers will ask you to provide basic information, including your full name, date of birth, and email address. On FBS.com you need to confirm e-mail, and, after that, you’ll receive a password. You can change it anytime.

• After your e-mail is confirmed, you can choose the account type and the platform where you are going to trade. You can’t use different platforms with one demo account.

Finally, the registration is finished! Save the information that is shown. When your account is created, you are ready to trade!

Open an FBS Demo account

If you want to try FBS Trader, you can create the Forex demo account right in the app. Thus, using a demo account allows you to actually trade the Forex market without making a real deposit.

Why new traders should try a Forex demo account?

Beginner traders can use a demo account to experiment with trading various markets, trading at different times of the day and finding an effective trading strategy.

Using a Forex demo account doesn’t allow you to trade with real money. However, it imitates the Forex trading experience, allowing you to learn how to use the features and functions of the platform.

You will be allocated a generous amount of virtual money to trade with. As a beginner trader, you should aim to place at least 50 demo trades before trading with real money.

Repeating the process multiple times ensures that you know how to quickly open and close trades, allowing you to become proficient in placing orders.

On the pictures below, you can see the interface in FBS Trader. You can choose the asset to trade from the list. After clicking on the asset, below there will be two buttons: Buy and Sell. When you finish your analysis, open the order accordingly. Before opening the trade, you can set the preferable Stop Loss and Take Profit. Closing the order is also very simple. Click «Orders», then right after your opened orders you’ll see the cross. Click on it, and your trade is over! Congratulations!

How to benefit with a demo account?

If you follow several rules, the Forex demo account can be a really useful tool for practice.

Choose the same amount of money as the one you will have on the real account. Try to imagine that the money you have on the demo account is real and profits and losses are real too. Remember that if you failed to gain profit on a Forex demo account, you will not be able to do it on the real one, so try to learn Forex trading and evolve while using the demo account.

Introduction to the Trading Platform

Each trading platform is slightly different so even the most experienced traders can benefit from using a demo account before trading real money on their chosen platform. For example, they may want to use a Forex demo account to test a strategy or enter a new market.

Improving the Psychological Factor

Many traders find it difficult to control their emotions when they win or lose trades. Your goal should be to manage your emotional responses in a way that promotes profitability. The ability to deal with natural psychological reactions, such as hope, fear, or greed, can distinguish a successful trader from a failed trader.

Testing of trading strategies

The best way to learn how to trade is to test already existed trading strategies and a demo account is perfect for that. You can try trading with many various strategies until you choose one that works for you.

Create a trading plan

There are many different Forex trading strategies to choose from. Some of them are suitable for beginners while others are more suitable for experienced traders. Your priority should be to choose a strategy that suits your individual trading style and allows you to tailor your trading activity to your lifestyle.

Create a trading journal

To make trades only isn’t enough for effective learning. While you use a Forex demo account, we recommend you to make a trading journal and analyze your orders after finishing it. This approach helps you to get all your mistakes and create the strategy that works exactly for you.

Trade like it is real

The demo account allows you to learn about the mechanics of Forex trading and test your trading skills and processes with ZERO risk. If you are new to trading or currency trading, it is a good idea to find out if you enjoy Forex trading before making any financial commitment. Forex trading is intense and requires commitment and time. After learning more about Forex trading and practicing on a Forex demo account, you may decide that it doesn’t suit your personality or your lifestyle.

Demo trading pros and cons

A demo account gives you a perfect way to practice your trading skills without wasting real money. It sounds tempting, but there are some pitfalls to consider.

First, the Forex demo accounts offer a bigger amount of money than a trader will use during a real trade because a trader can choose any amount of money for practice. However, people often choose more than they will really trade with in real life. They take extra money for mistakes, but on real (live) accounts, traders won’t have so much money for their faults. Moreover, with such a big capital, a trader doesn’t understand the real losses as they are easier recouped by a big capital than by a small one.

Secondly, demo account trading lacks real emotions. There’s no fear when you have nothing to lose. Fear influences traders’ behavior and not many traders can control their emotions. As a result, it doesn’t make much sense to practice your skills when you do not know how you will behave in situation where you will be under a lot of pressure.

Conclusion

With a help of the Forex demo account, you will be able to practice on real data, but without any real risk of losing money. This way you will be able to learn everything you need to be a Forex Pro much faster. To try this account, choose Demo upon registering an account with FBS.

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