There are many different Forex trading platforms, each with its own characteristics, advantages and disadvantages. How can a trader know which system will work best for him and which platform will best serve his trading needs? The answer is, simple to prove them. Each reputable broker offers the opportunity to test their trading software. This is done by opening a demo trading account (demo). Demo dollars can be used to see how the system works.
Advantages of Demo Trading
One of the biggest advantages of demo trading accounts is that, in addition to testing the trading platform, you can also try Forex trading strategies without risking real funds. With most brokers, you can continue to use a demo trading account for a long time after deciding which platform is the best, and try as many trading strategies as you want. It should be noted, however, that there are some brokers who offer their demo accounts only for a limited time, so the offer should be checked carefully.
Study the Trading Platform
The demo software allows you to familiarize yourself with all the features of the platform being tested and determine whether or not it is comfortable to use and if it is intuitive for everyone. While it is normal to take some time to learn a new platform, if a trader is struggling too much, you may want to explore other options.
Choosing the Right Broker
If you perform a Google search on Forex demo accounts you will get hundreds of results, maybe even thousands of broker options that offer this service. Clicking on any of them will probably bring you to a page on the broker’s website that explains exactly how to open a demo account and how the demo account will work. It is important to take into account the characteristics that each demo account will allow to use and what features are not available for demonstration users, since some brokers limit the services offered in their demo accounts. Specifically, some brokers may limit the amount of trades allowed or may block certain trading strategies, or plugins. Some brokers also offer a limited selection of currency pairs in their demo account. Similarly, if you are looking to test strategies, the needs may be different than if you are looking to test the platform and learn to use it, so you must plan according to the desired goal.
Read the Small Letters
Finally, it is important to make sure that the broker you are looking for has no hidden costs for using your demo version. Surprisingly, some brokers require a minimum deposit to be able to use your demo account. We tend to think that the brokers of the highest quality are those that offer a totally free demo.
Understand the Differences between a Demo Account and a Live Trading Account
Although a Forex demo account should be almost identical to a real account, it is essential to make sure you understand the differences before switching to a real account. Although the differences may be subtle, they can affect trading, so you should proceed with your eyes open, and you will have a smooth transition from a demo account to a live trading account.