If you are learning to trade currency, it is a good idea to open a forex demo account. Almost every foreign exchange broker now provides a demo practice account. The demo account allows you to get to know the trading platform and to try out Forex trading without any financial risk.
In order to trade forex, it is first of all important to have a forex trading account. These accounts are operated by a forex broker. And the account provides access to the foreign exchange.
Since many newcomers are of course not yet familiar with the strategies and the trading platform, the vast majority of forex brokers offer a forex demo account.
This account is similar to the real trading platform but funded with virtual capital, also known as play money.
The trader can use this capital without risk and thus get to know the function of the trading platform or even try out strategies that he would like to use later in real trading.
Opening a forex demo account is relatively easy. In the first step, you first have to register and log in to the respective forex broker, which usually only takes a few minutes. After registering and receiving your access data, you can log into the system. At this point, you usually choose whether you want to open a real trading account or a forex demo account. In this case, you first decide on the demo account and can then usually use this virtual test account immediately. However, before you choose a special forex demo account, you should compare the offers of the brokers in this section. There are indeed several differences between the different test accounts.
The forex demo account as such does not involve any financial risk or costs, but there are still some differences in terms of conditions. First of all, the demo accounts of the forex brokers differ in whether you can use the test account independently of the previous opening of a trading account. With some forex brokers, the forex demo account can only be used if the real trading account has already been opened. Most forex brokers, however, provide their customers with a so-called real demo account. This means that this test account can also be used if no trading account has previously been opened.
For this reason, you should inform yourself about the following aspects in particular with regard to the Forex demo account:
In particular, the question of how long the demo account can be used for is important for many newcomers to forex trading. You certainly don’t want to be under time pressure either, because some forex brokers only make the demo account available for 14 days, for example. On the other hand, test accounts that the broker provides for an unlimited period of time are better.
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