We have all heard the saying, “nothing is for free”. But when it comes to the world of Forex trading, there are free demo trading accounts. Many professional automated forex software applications have trading demo accounts. This is a great place to start. These demo accounts use real-time, live currency trades, you make decisions based on breaking news and use forex charts. All your transactions, wins and loses are on paper.
Once you start making trades in a demo account; you will get familiar with the trading process. Forex trading is not something you learn over night. Don’t fool yourself there is a lot to learn about the forex market. The FX market is highly volatile and it is imperative that you educate yourself. Opening up a demo account is a very important step towards being a successful forex trader
Some of the basic forex terms are: leverage, margin, PIP, spread, limit order, stop-loss and trailing stop. The Forex market is traded in pairs here is an example:
EUR/USD last trade 1.5000 – Explanation, One Euro is worth $1.50 to one US dollar.
The first currency (in this example, the EURO) is referred to as the base currency and the second (/USD) as the counter or quote currency.
A demo account allows you to experience the same dynamic market action and go through the same process of making decisions based on breaking news, reacting to charting patterns, and tracking your performance.
When you are ready to start trading on with a live account, open up a mini account. Successful FX traders take baby steps. After the mini account you can step up to the full size trading account.
The mini forex allows you to open an account that is at a reduced amount. It requires a smaller capital compared to regular forex accounts.
The minimum investment for a mini account is $300.
Recommend account deposit = $2,000
Traded in 10,000 unit currency lots
Default margin is set at 0.5% ($50 per mini lot)
Leverage up to 200:1
There are no downsides to trading a FOREX mini account. As a new trader you develop discipline, trading strategies and techniques without excessively thinking about the profits and losses.
The FX trading hours are 24 hours a day except on weekends. The hours are 22:00 Greenwich Mean Time Sunday until 22:00 Greenwich Mean Time Friday. This allows you trade on the FX after you complete your daily obligations. Trading can be done from any kitchen table in the world. If you have been thinking about trading on the FX market, open up a free demo account today.