The author is an expert in the field of multi-asset trading.
6 Reasons You Should Open a Forex Demo Account
If you’re new to the world of forex or trading in general, then chances are you’re not ready for the real thing just yet. Every new trader begins their journey with a demo account, and every reputable broker should offer this option to their potential clients. But the usefulness of a demo account is not just limited to beginners, as you’re about to find out. Read below six of the top reasons you should open a forex demo account, and see the benefits for yourself.
It’s 100% Free
One of the best things about a forex demo account is that you don’t have to commit any actual money. Your broker will give you a demo account free of charge and give you virtual funds to trade with (Equiti provides $10,000 in virtual money + leverage). There are no hidden charges or fees, make as many virtual trades as you want. Best of all you don’t need to commit to anything and there are no obligations to move on to the real thing.
There is Zero Risk
We know that trading can be risky, and the best way to prepare yourself for those risks is by trading with a risk-free demo account first. All the losses (and gains) that you incur with a demo account are virtual and won’t harm you. You’re essentially trading using “play money,” so don’t be afraid of taking risks. As we’ll learn below, this is a good exercise in risk-management and exploring how the market works, with all its ups and downs.
Explore the Market & Instruments
With a demo account, you can trade all the same financial instruments that a real account gives you access to, in real-time. Take your pick of over 60 currency pairs, a dozen commodity and index CFDs, and precious metals. This is a great opportunity to trade all the different instruments and assets and see what you like. You’ll also get to experience the markets in real-time, seeing how they behave and plan your moves accordingly.
Practice New Strategies
As we mentioned, a forex demo account isn’t just for beginners. Have a new trading strategy you’d like to try out? Give it a go on a demo account first to see how it works. You won’t risk losing actual money if it doesn’t go as planned, and you’ll get some valuable insights into how the strategy works during different market conditions. Practice your strategy for as long as you need to on a demo account until you’re sure of its effectiveness.
Sharpen your Skills
This ties into the previous point about practicing your strategies, as a demo account gives you a chance to brush up on your trading skills and use different techniques. With no real money on the line, you’re in a stress-free environment to practice and learn the trading platform inside and out. Practice makes perfect, so make sure you’re reading all the charts correctly and are fully ready and capable to pull the trading trigger at the right time.
Test the Broker’s Services
A demo account is a window into your future client-broker relationship, so feel free to ask questions and get in touch with support anytime you need to. This is the time for you to explore the trading platform and see if it’s to your liking, and to also see how responsive your broker is to your needs. Equiti provides all its traders the world-famous MetaTrader 4 platform, and prides itself on its 24/5 customer service and technical support. Get in touch with us.
Still not convinced that a demo account is the right first step into the world of forex and trading? Quickly open a demo account right now with no obligations and see it all for yourself.