Forex demo accounts are free Forex trading accounts for a limited time. This is a method by which Forex brokers advertise the superiority of their particular brand of Forex, or at least highlight the different functionalities of the same. This article will discuss several techniques by which one can maximize the use of Forex demo accounts.
Different Brokers Offer Different Forex Demo Accounts
As a general rule a trial Forex account will offer basic Forex broker/trading functionalities such as practice accounts, access to raw data, economic indicators, platforms, charts, educational materials, money managers, etc. Of course one provider may offer several types of accounts (i.e. single, joint, corporate, etc.).
First you need to know what you actually need as a trader and then narrow down the search via trial accounts. Select several and then try out their particular brand of Forex accounts and then decide on whether or not it is worth it to sign up for one or more accounts. Remember, the mere fact that the account is free does not mean you should just randomly use any account one at a time and select one at your leisure. This may not cost you actual money but this may cost you in terms of opportunity loss.
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Thinking One Step Ahead on Forex Demo Accounts
Aside from selecting the right type of account you need to understand the services available to you and the amount of money you pay for the same. Remember, some providers will charge extra for additional functionalities such as SMS alerts, corporate accounts, premium feeds, etc., and some will not. The worst you can do is get used to one service only to find out in the end that you need to pay significantly more to avail of the full functionality as allowed in your trial account. Of course you also need to consider if that additional cost is worth it in terms of actual benefits that the same provides. For example, there are studies that show that SMS alerts significantly increase the profits by 2% to 10% each month.
Maximizing Forex Demo Accounts
Read the instructions carefully and fully! Some brokers complain about lackluster Forex accounts only to find out that the full use of the same would have saved them from making terrible decisions. Some actually find out useful and profitable functionalities a few months after signing up. This means opportunities, which are lost, and income that is not generated. Read the instructions twice, once by skimming the same and second by reading in detail. This way you fully grasp what the instruction manual is telling you. Another way to maximize your account is to browse thru the website of the same. As a general rule these providers have a veritable library of e-books and audiovisual presentations to school you or refresh you on Forex.
READ ALSO : The Importance of a Forex Practice Account in Molding a Disciplined Trader
Beware of Fraudulent Forex Demo Accounts
Basic information is required to avail of demo accounts. This does not include full credit card information, which is enough to actually charge you. A usual ploy employed by fraudulent providers is to request related information for credit card charging. They rationalize that the same will only be charged if you do not discontinue service prior to the free account expiration. This is for your own convenience they say. The problem is, when it comes time to disengage the service you cannot contact anyone or the email address is not working. The result is that your credit card gets charged and good luck asking for a refund.
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