The Instructions for opening a Forex account
You don’t have to spend your own money on Forex right from the beginning of your trading journey. Most brokers offer you demo accounts, which let you test out the Forex market with virtual money using real market data. Using a demo account is a good way to learn how to trade. You will be able to practice on real data, but without any real risk of losing money. In such way you will be able to learn everything you need to be a Forex Pro much faster. To try this account, choose Demo upon registering an account with FBS.
Open Demo Account
Demo trading pros and cons
A demo account gives you a perfect way to practice your trading skills without wasting real money.
It sounds tempting, but there are some pitfalls to consider.
First of all, demo accounts offer a bigger amount of money than a trader will use during a real trade, because trader can choose any amount of money for practice. However, people often choose more than they will really trade with in real life. They take extra money for mistakes. But on the real (live) accounts, traders won’t have so many money for their faults. Moreover, with such a big capital, trader doesn’t understand the real losses as they are easier recouped by a big capital than by a small one.
Secondly, demo account trading lacks real emotions. There is no fear when you have nothing to lose. Fear influences trader’s behavior and not many traders can control their emotions. As a result, it doesn’t make much sense to practice your skills when you do not know how you will behave in situation where you will be under a lot of pressure.
How to benefit with a demo account?
If you follow several rules, the demo account can be a really useful tool for practice.
- Choose the same amount of money as the one you will have on the real account.
- Try to imagine that the money you have on the demo account is real and profits and losses are real too.
- Remember that if you failed to gain profit on a demo account, you will not be able to do it on the real one, so try to learn Forex trading and evolve while using the demo account.
Moreover, with FBS you can make real profit on demo account. We have FBS League contest going on among demo traders twice a month. You can join it solo or in the team and make up to $900 in one tour!
When trader needs to use a demo account?
There are various situations when you should use the demo account first.
- If you have no idea how to trade on a trading platform a demo account will help to you learn its features and avoid accidental trades.
- If you want to start using a new trading strategy and want to see whether it works for you. You can use demo account to test this strategy. Afterwards, you may try the strategy in real time. Of course, such test won’t give you a 100% guarantee that the strategy is good, but it’s better than nothing.
- If you decided to use an automated trading program, you can test it on the demo account. Trading program is a robot/expert advisor that is not affected by emotions. It does not matter whether you implement it on demo or real accounts.
- If you came to the Forex market just to check your skills and play on the exchange rates. When you do not take trading seriously you may suffer great losses. If you see it as a game, play it on the demo one.
Demo account is a good option for training and beginning of your trading career. You can test your strategies without losing any money. Just remember about the disadvantages you may face with demo trading.
Pay attention to the fact that the minimum deposit at FBS starts from just $1 on real accounts. You can start your trading career with a little money. So, you can limit your risks, while having a real chance to get profits on real account!