Review Forex Demo Accounts The Good and Bad

If you're looking for forex DEMO account that can only mean one thing: You can hardly hold your horses to get started in Forex, so let me welcome you to the most fluid market on Earth!

Let's review demo currency trading accounts from all points of view taking into consideration the good points along with the bad or ugly ones...

The foreign exchange market is quite complex and it may be a bit overwhelming at the beginning but there is a way you can get started fast and with no risk: by using a demo account.

The good:

You can get involved in Forex and test out systems while sharpening your trading skills without ever risking any real money.

How fast can I get started? You can have your account up and running in no time...most of us experience a great feeling the first weeks when we can't wait to switch the PC on in the morning.

What is a demo account and what do you mean by trading Forex with no risk?

From the point of view of the new investors, using a demo account gives you the chance to apply what you've been reading on free e-courses or training material and start trading without risking real money.

The important thing that you need to learn with a demo account is how to stick to a system consistently, including managing losses. This is something no e-book or mentor can teach you, you can only learn by doing it for yourself.

Ideally, you will quickly develop a profitable system and a solid trading plan. You will learn how to make money from trading currencies while developing a cool head that won't let emotions interfere with your success taking hold of your trading decisions.

So where do I get a demo account?

As a trader you don't actually have direct access to the live forex market, you must operate through a broker over the Internet. This broker facilitates the software you need to use as a platform so you can place and control your trades based on the prices that you see on the screen, it's all done online.

Your broker will offer a demo or practice account where you can start trading real time no later than today and experience how it feels to trade in the forex market without ever risking real money.

Why do Brokers offer Free Demo Accounts?

Brokers will give you the chance to practice on your account at no charge on assumption that you will try out their software platform and like it and then decide to invest funds on the platform that you have become familiar with. Best part is you get the chance to start trading and work out a profitable system without risk. It's a great way to practice your trading strategy or plan and learn by your own experience.

The bad or ugly in DEMO accounts:

Demo accounts have one big disadvantage, especially for new investors and funny as it may seem that's exactly it's main advantage: They are risk free.

Let me clarify this...Since you're not using your own hard earned cash to place your trades you're likely take risks that you wound't take with real money. When you're lucky and your demo trades are doing well you may want to go ahead and start trading real money with misplaced confidence thinking that you cannot lose. You can. Bear in mind that practice accounts will give you the results you want only if you take the time to learn and apply a trading plan consistently and with discipline before you start trading real money.

You must to take your trading seriously, which means being concious of the fact that currency prices can change very fast and you can either end up making lots of money in a short period of time or lose big sums just as fast.

THE GREAT! We all enjoy last minute surprises =:D

As you can imagine, brokers are competing trying to capture new investors which only translates into advantages for you:
They offer more and more free tools and services with their demo accounts such as tutorials and charts so you can analyze price movements and identify profitable trends...
They give you access to breaking forex news
Demo accounts are also great for experienced traders on the lookout for new broker's platforms before they switch accounts.
Be a good money manager, have self discipline and practice with a demo account until you are confident you can go ahead and trade real money and you'll be in a very good position to eventually trade forex successfully.

To your trading success!