Trading in the foreign exchange market is definitely not child’s play, but you can learn how to trade in the market effectively using play dollars. This is made possible through the use of forex demo accounts offered by most forex brokers around the world. You can start out with a $10,000 forex demo account to get a feel of what you could expect from the forex market. The beauty of doing this is that you are trading with virtual money rather than putting your own capital at risk. You can also make a major mistake when it comes to your trading decision and not lose any money at all. Opening a $10,000 forex demo account is the best way through which people without much prior experience in forex trading can learn the ropes and test the various trading platforms before they get into actual live trading.
Forex demo accounts mimic real forex accounts. They are usually offered by forex brokers to prospective customers to help them understand how the market works. With these demo accounts, prospective customers can try their hand at trading using the system. After some time using the demo account, these prospects can make a decision as to whether they would like to use the same system for their live trading accounts or not. Although there is a downside to trading using demo accounts, trading experts still recommend using these tools as a way to practice trading in the forex market using the different forex systems. The key to learning as much as possible in a $10,000 forex demo account is to keep the trading as close to real live trading as possible – this includes both market conditions and the trader mind-set.
To open a $10,000 forex demo account, these are the steps that you need to take:
- Make a selection of forex brokers to try. There are plenty of forex brokers all over the internet for you to choose from. You can make a shortlist of these brokers and pick out which ones you want to test. As there really is no money involved in setting up these demo accounts, there is no limit as to the number of demo accounts that you can set up. But, you would still want to keep your demo accounts to not more than a handful to allow you to give each one the same amount of attention that you would in a real live trading account.
- Set up your demo account parameters as you would your live forex trading account. Most demo accounts would come with huge initial play dollars for you to trade with. To keep the experience as realistic as possible, you can set up your demo account with the amount that you intent to start out with. A $10,000 forex demo account would mimic a mini forex trading account that you can start with as you begin your foray into the forex market.
- Take advantage of forex demo account tutorials. Although there are plenty of materials online that would teach you the basics of forex trading, the tutorials offered with demo accounts are often found to be extremely useful as they walk you through the forex trading system one step at a time. These tutorials are available either in text file format or in a video format that takes you from one screen to the next and shows you how to navigate a particular forex trading system on a $10,000 forex demo account.