It is often advised that when you begin trading on the forex market you look at the different demo accounts offered by forex brokers. There are numerous reasons for this, and you must be aware of what they are. You should also consider looking at the different aspects of the demo account and why the features are important. Only with this understanding can you use a demo account correctly and effectively.
The demo account
There are many reasons for why you need a demo account. The most important is that you use this account to hone your skills and test the profitability of your trading strategy. Many traders also use the demo account to see if forex trading is really the right path for them.
Another reason why you need a demo account is to see if you want to trade with a certain forex broker. The trading platform that you use with a demo account is the same as the one you use with a live account. You have to see if you are comfortable with the trading platform and if it offers you everything that you need.
Trading on forex brokers practice accounts
When you trade on the demo account you have to be comfortable with the controls. If you find that the stop loss orders are hard to input then you may want to consider using a different broker. Of course, you also have to ensure that you trade correctly when you trade on a demo account.
Demo accounts offer you a simulation of the live forex market. Unfortunately, many traders feel that this means that they do not have to be controlled or disciplined. This is not true as many bad habits that traders have start when they are using a demo account. When you trade on this account you have to trade in the same manner as live trading. Only when you do this will you get the full benefits of the demo account.
The trading platform
When you open a demo account you have to consider the style of the platform. There are two styles that you can get and they are basic and integrated. Most forex brokers have some form of integrated trading platform that they offer. The level of integration will vary depending on the broker. If you are going to be using other charting software then you may need a basic platform. However, if you want everything to be in one place then you have to look at an integrated platform.
Browser-based trading platforms
You also have to consider whether the trading platform you get with the broker is browser based or not. There are a number of reasons why you may want a browser based platform instead of one you have to download. When you have a browser based platform you can log into your trading account anywhere as long as you have an internet connection. Platforms that are downloaded will only be on your computer. These platforms may also need to be updated so you can get all the features the broker has to offer.