July 21, 2020

How to create a demo account for Forex trading

When you consider to start trading currency it might be a good idea to first get a little practice using a demonstration account. A Forex demo account is structured just like a real one with the major difference being - there is no real money involved in the process. It can be beneficial in a number of scenarios and for traders with different levels of expertise. So let’s talk about how to create a demo account for Forex trading and what is the best place to create a Forex demo account.

Creating the Forex account

In order to best explain why is it such a great advice to start your trading journey with some practice we can take an example from another skill. For example, painting. Knowing the basic theory is nice and sometimes even necessary. You can spend months familiarizing yourself with different painting styles, famous artists’ biographies, the names for each particular painting brush. But would it make you a great painter if you did not even touched the pencil for all that time? Not really. Same applies here. You can know all the terminology in the book and even work out several strategies based on your knowledge. This, however, does not make you a trader. What does make you a trader? Trading (surprise,surprise!).

But starting to invest your money in order to practice is not only risky, it is downright silly. Of course, you can start small and reduce your losses by investing small amounts. And even then you cannot disagree that a small loss is still a loss. That is why practicing on demo account is a very useful tool to gain your confidence, become familiar with the software and develop your own unique trading strategy. This can be also used by experienced traders who would like to perfect a newly developed strategy. Because even if the method sounds great in theory, does not always mean that it will prove effective in the circumstances of a real live market.

In order to understand how to create a demo account for Forex trading it is first important to learn how to create Forex account in general. Both demo and real accounts are created the same way, and moreover they will be linked during your further trading experience without, however, affecting each other.

Creating the Forex account is a complex process that has been drastically simplifies with the rise of the era of online trading. You might already know by now that the most online trading is processed by a platform called Metatrader 4 (also referred to as MT4). You do not need to worry about downloading the software yourself, just go to your broker and request a copy. The chances are you will even receive it without request because the broker is just as interested in your trading success as you are.

After you get your hands on the copy of MT4 software start by installing it and running it on your computer. Be patient as it might take a few minutes, great opportunity to go grab yourself a cup of hot coffee. As the platform opens in main view proceed by following the path: File - Open an Account. A new window will open asking you to fill your personal info (surely you will not need help there). A few things to pay attention to is selecting the appropriate server, suggested by your broker. The difference is different brokers use different servers, so in order for your account to be activated you need to be specific. And also as you will be taken to a pop-up window labeled “Registration” be sure to select the account type as “Demo”. After pressing “Finish” you are pretty much done. It is now time to start the training.

Best place to create a Forex demo account

As mentioned before your one-stop shop for everything related with opening a demo FX account is a trustworthy broker. Creating the Forex account on its own is not a very difficult task but with the right broker by your side it will be done even faster and easier. In case you don’t already know, brokers are companies and individual people who give their clients access to the trading platform as well as sell and purchase the currency on their own. Having a reliable broker is important as it is the guarantee for your success.

While choosing the right broker pay attention to things like time efficiency, or in simple words how fast does it take for a broker to fill an order, how much are they charging for various transactions and if they have a customer support team on board. Customer support team is another key to success as they usually consist of experienced traders who are ready to assist not only with a market related advice but with the technical solution as well.