How To Open A Demo Account In Forex

How to open a demo account in forex?

If you are new to trading or if you want to really learn the in and out’s first about trading without spending your hard earned money. Demo trading is the place to go.

Using a demo trading account, it allows you to explore the in’s and out’s of trading, explore the market and trade as if you are on real live market. The only difference is that it is using a virtual money or basically a play money.

Demo account allows us to learn the mechanics of forex trading, trade with Zero Risk and familiarize the platform itself.

Now, demo trading has its own pros and cons too, I believe that demo trading is underrated or mis-interpret by aspiring traders but let’s discuss it on the latter part of this post.

For now, here are the step how to open a demo account in forex.

1. Go to your preferred forex broker, if you still don’t have a preferred one, here is my recommended (which is what I am currently using).

CLICK HERE TO PROCEED DEMO ACCOUNT OPENING

You don’t have to follow my recommendation, it just that, it is where I am currently trading and I am most familiar with. You have the options to choose yours, however, you have to choose it wisely as there are brokers that are being link as SCAM.

Basically, opening demo and live trading account has the same procedure in almost all of the brokers.

2. Click the “Try a Demo Account” or Open a demo account – it will redirect you to the application page.

3. Fill out the necessary information that is needed. Basically it only requires your full name, email address, the amount and currency you want to start to trade. I highly recommend that you put the amount similar to the capital you’ll deposit when you trade “live”. Start your demo trading account at least $500 – $1,000 or it depends on your preference.

4. Check your email for your account login, trader’s password and the server.

5. Download the mt4 trading platform, which is also located on the page where you click the “open demo account”. Just simply install it on your laptop and desktop. You have a choice to also download it on your mobile, but I highly discourage you trading on mobile especially if you are just starting out.

DOWNLOAD THE TRADING PLATFORM HERE:

MY ALTERNATIVE WEB BASED PLATFORM

After installing, just input all the information provided to your email by the broker and viola, you can start demo trading. Retail traders can participate 24hrs a day, Monday’s to Friday. And you can trade anywhere and anytime you want as long as the market is open.

Note: Some brokers have automatic follow up emails, after several days, they will send email encouraging you to open a live account, ignore it muna. Opening or trading on a live account is a different scenario, procedures are the same how to open. But gaano ka kahanda to risk your hard earned money? Again, utilize demo account to practice and develop your skills as a trader. Make sure that you already establish a profitable system that are well practice during demo trading before you go Live.

Now, as I’ve said earlier, demo accounts has its own pros and cons

Pros

• No doubt, big advantage is that you can practice trading for FREE
  You can trade with zero risk while training and doing some familiarization how forex trading works. You can do it as long as you want, you can restart and create a new one at anytime you want.
• Aside from understanding the in’s and out’s of the market, demo trading will not only allow you to trade, place buy and sell order as if you are trading in a live market but it can be utilized to established what will be your profitable system. Which means, while you are on a demo trade, it is not only about familiarizing how to navigate the platform or how to place an order, analyze the market but it is there for you to develop, test different trading strategies and trading styles that will best suit you and then summarize it to create your own profitable system. Basically, demo trading is there to help you to be prepare para konting adjustment na lang pagdating ng live.
• Trading demo account eventually helps you to learn how to avoid common beginner trading mistakes that you may encounter.

Cons

• Emotional Response will be different using demo account vs. trading with a live real funds. I do believe that, we as a humans tends to become emotionally attached when there is a monetary value involve or kapag pera na ang usapan. And because it is free and does not involve a real money, you might not be serious on doing it. There is a high chance that you might not respect the demo itself or the money involve since it doesn’t have value. You might develop a negative trading habits that will eventually have an impact when you trade live such as over trading, not respecting the risk involve, over leveraging and most especially you might do random trading.
• It can cause unrealistic expectation if you don’t understand first what will be your purpose of trying demo trading. You might fall in love on the unrealistic returns since you now have a chance of executing trade as if it is a live funds. You might get hooked on the profits
• You may not pay attention on the trading losses because it is not real money, walang value. Most if not all probably pwedeng balewalaen since there is no value.

This are just some of what I can share with you, however I highly recommend if you are really serious about this business, treat demo as if you are trading live.

Utilize it to practice what you will be doing 0nce you go live. Maximize its advantage, you can demo trade all you want however be realistic with your approach to avoid developing those negative trading habits that will later affect you when you trade live funds.

Hope you find this insightful, I wish you good luck! Learn! Apply! Practice! Rinse! Repeat!

Cheers!