Is It Worth Creating a FOREX Demo Account?

Always start with a demo account!

All retail FOREX brokers offer these accounts. This account allows you to preview most of the broker's platform features and become familiar with how charting, indicators, order placement, and accounting are handled. The demo also may be used for learning.

The demo survey will assist you in deciding what broker or brokers to use for live real-time trading. You may start small and build. A micro-account typically allows for trades of as little as 1,000 units; a mini-account, for 10,000 units.
A standard lot is 100,000 units and a bank lot is 250,000. There may be some difference between the demo account and a real-time account, especially in the data feed and order types; make an effort to find out what these are for each broker on which you do due diligence.

If you make money with a demo account -- congratulations, but do not get bigheaded. In my years in FOREX, I have seen only one new trader not do well at the demo level -- and he turned out to be a very successful trader.
By Michael Duane Archer
Michael Duane Archer has been an active futures and FOREX trader for more than 35 years. He has worked in various advisory capacities, notably as a commodity trading advisor, registered SEC investment advisor, and branch manager for Heinold of Hawaii. He currently trades FOREX and futures and is involved in several technical analysis research projects.

Copyrighted 2020. Content published with author's permission.

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