Forex demo accounts provide valuable training, experience, and perspective to beginners, intermediate, as well as expert Forex traders. Demo accounts are free for a limited period of time and can then be continued via paid practice programs. Opting for a demo account not only allows a trader to determine usefulness but also the type of practice accounts that suit him/her best.
This article will discuss several features available to different Forex demo accounts that can be selected by a Forex trader for maximum learning experience.
Access can be online via web browser, downloadable, or both. Of course the third choice is the best option but not all demo accounts allow the user to download the program. The first option is a viable alternative for those who have fast and constant internet connectivity and/or limited internal memory while the second option is best for those who have unreliable internet connectivity with sufficient hardware memory. However bear in mind that uploaded versions have to be continually checked for updates for a more relevant user experience.
Tutorial and Interface
Tutorials take two forms. The first is interface tutorial and the second is basic, intermediate and advanced trading practices tutorial. Remember, you need to select a demo account that has easy to understand instructions and educational content that is up to date and relevant. Inquire about regular updates on tutorials as well as news feeds or newsletters.
Depending on the type of trader you are, you may want to specify the types of spread available to you. Of course demo accounts may allow you to use a full range of spreads but make sure the paid account allows you to use the spreads you need at affordable rates. Remember that spread ratio impacts your trade so you need to take this into consideration now when practicing on a demo account rather than later when you are doing it live.
Practicable Interest Rates
The best Forex demo account programs provide interest rates as well as indicators as close to real time as possible. And more importantly you are able to utilize these rates and indicators when practicing on your trades. This way you not only practice on strategies but you also determine how well you are at reading the indicators via real time comparison.
Demo programs usually offer a list of educational materials to augment the demo experience. Of course, in some cases, the demo program will limit the use or access to a few pages or a summary page. Pay close attention to these materials when considering paying for a practice account because if the interface and pricing is the same with different providers then the educational materials can be a good tie breaker.
Forex demo accounts limit the amount of time for use and/or money available for trading. You want to look for a demo account that has a long trial period and a huge virtual money cache, but you also want to look out for how much virtual money will cost on the paid account. Oh, and handling your money conservatively is well and good, but remember, you are practicing to hone your skills so do not be a scrooge on your calls and puts.