When you develop an interest in trading forex in the UK, you will quickly learn that there are numerous forex trading platforms available, each with its own unique characteristics, benefits, and demerits.
With all these options, how can a trader know which platform will best work for their needs? The simple answer is to simply try out the different platforms. You can use demo accounts for your trial phase. These platforms offer demo currency to help you get acquainted with the trading world.
Even though a forex trading account looks similar to the live trading account, there are a few differences that you need to learn before you switch to a live account. Ensure you take note of the differences between the different platforms you try out and also understand how these changes impact trading. Only go for the demo trading account platform that makes your experience easy, as it will also make your transition easy.
How to open a forex demo trading account for free
A majority of forex broker websites will enable prospective clients and even their current clients to open demo accounts for free on their platforms. This demo accounts enable traders to practice the trade before switching to live accounts where the real money is at stake.
As a demo account operator, you will also gain access to some client services and support staff services the broker avails to their clients. This gives a good idea of what it would be like to trade forex on the platform’s live account.
To open a demo account, simply navigate to the online platform of choice and follow the instructions availed on how to open an account with the broker. You can choose to deal with 2 or more Australian demo trading account platforms as you compare the pros and cons between them. Take note of your experience on each platform, the features availed to you and the client support you get. All these aspects will play a significant role in helping you to choose the ideal platform to trade on through a live account.
When you are about to open a demo account, you will be required to choose the virtual money amount you would like to trade with. You will be required to enter personal information for identity purposes. However, online trading platform guarantees the safety of your information and do not offer it to third parties. This ensures that the information you avail is kept private and confidential.
If you feel uncomfortable offering your real information for a demo trading account, you can open an account using a factious name and contact details. Once you are sure that you want to use the platform to trade forex, you can now use your real information.
The advantages of trading forex on demo accounts
It is a trial platform
When you are new to trading forex, the best way to know if you’re cut out for that line of work is to try it out. A demo trading account allows you to try forex trading before you commit to a live account. Once you are acquainted with the trade, you can make a switch to a live account with ease and confidence.
No risks
When you are a novice still learning on the trade, going live before trying out a demo trading account can be damaging to your bankroll. Demo accounts allow you to trade using virtual money which is risk-free. You trade the virtual money in an environment that mimics the live trading environment without risking your money. This gives you room to make errors without having to pay for your incompetence through losing actual money.
Teaching money management techniques
For you to enjoy long-term forex trading success, you need to learn how to implement money management principles. With a demo account, you are able to learn and practice these techniques on real rates as you see how benefits accrue in terms of virtual money profits.
Testing strategies
This is especially helpful to people who are already trading forex in live accounts but want to test out a strategy before using it in live trading. This way, a trader can accustom themselves to the new strategy and also learn of any hitches that may occur when using the strategy in the live account.
