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.
Copyright 2012 by Michael Duane Archer. All rights reserved. John Wiley & Sons, Inc."
Content provided here under exclusive license
Related "Selecting a FOREX Broker Guide" articles
- Selecting a FOREX Broker
- Make Sure to Do Broker-Dealer Due Diligence
→ Is It Worth Creating a FOREX Demo Account?
- What’s the Difference Between a Market Maker and an ECN?
- FOREX Trading Costs
- What are Liquidity Providers?
- Customer Service in Retail FOREX
- Trading Pair Palette
- Is It Safe to Trade FOREX?
- FOREX Broker Complaints and Account Options
- Things to Avoid with FOREX Brokers
- Top FOREX Broker-Dealers
- Popular FOEX Broker-Dealers
- The Big Four Broker-Dealers
- FOREX Broker-Dealers for the Professional and Non-U.S. Trader
- What is Spread Betting in FOREX Trading?
- FOREX Fraud, Scams, and Off-Exchange
- FOREX Broker-Dealer Checklist
- How to Pick the Right FOREX Broker-Dealer for You?