Simulated Forex Trading With Demo Account! Many think that simulated Forex trading is simply for the trader who is just starting out. As a matter of fact, many brokers have the same thought. They might only offer their demo accounts for a limited time only. There are other brokers who don’t offer a demo account at all.
Why no demos
There are quite a few Forex brokers who don’t offer demo accounts. They are usually bare-bones operations, and unless they are ECN brokers, there’s no reason why they wouldn’t have the ability or desire to offer simulated Forex trading. Knowing that most brokers offer forex demo accounts, it only works to their disadvantage to at least not keep up with their competition. There are hundreds of brokers out there. If you do your homework, you won’t have to settle for something like that.
There are many Forex brokers who have a time limit on the demo accounts they offer. Anywhere from two weeks to a month, they consider it a trial. They believe once you have gotten used to simulated Forex trading, you won’t need the demo account anymore and will always rely on your live accounts.
Simulated Forex Trading With Demo Account
There could be a certain truth to that, but those with experience know that it’s so much more. Generally speaking, the brokers who offer a demo account feel that they want to discourage the person who only wants to play around like they would any free virtual game on the Internet. And to a certain extent, there may be some credence to this assumption. There are probably people who view simulated Forex trading as just another online diversion. Brokers aren’t in business to provide free games and there is a certain truth to their logic for limited demos.
Before any golfer puts the club head to the ball, he has taken a few practice swings. Before any baseball batter approaches the plate, he’s taken a few practice swings. It’s not that they’ve never hit a ball before.
The same is true for simulated Forex trading with a demo account. It’s the practice swings. This practice applies to the novice and experienced alike. If an experienced Forex trader wants to try out a new strategy and he has a demo account, he has a perfect place to get comfortable with the strategy before he puts it into effect in his real trading account. If he’s trying out a new Forex pair that he’s not familiar with, he can try it out on his demo account. There are dozens of reasons for the experienced Forex trader to use a demo account.
It is rather obvious why a new trader would want to experience simulated Forex trading before he sinks real money into an account. The newbie needs to get comfortable with the whole process of buying and selling online, with no fewer strategies and discipline. The demo account shouldn’t be a luxury; it should be considered a necessity. A new trader shouldn’t choose a broker that doesn’t offer a demo account. It’s that simple.
If you can find a broker you’re comfortable with who offers an unlimited demo account; go for it. It’s not just for the new guy. And it’s certainly not just for fun.