Lesson #11: Demo Account
Demo accounts in forex trading should be a must for every forex broker since they should be used to test trading strategies and get to know the world of forex before trading in it. This is possible thanks to a peculiar combination of features:
- Demo accounts are for free and therefore you do not have to pay in order to download them.
- Demo trading is comparable to real trading since demo accounts simulate what happens in the real world. The only difference is that no real money is traded.
- You will be able to use all the features of the trading platform in the demo account.
As it is easy to understand, demo accounts are a perfect tool to create, test, and consolidate forex trading strategies. You should make sure to use a demo account as long as you feel uncomfortable with your personal forex trading strategy. The drawback of a demo account is that you do not learn the psychology of trading. Once you feel comfortable with you forex strategy you should open a live account.
What is the best way to use a demo account?
- Open a PaxForex demo account for free.
- Create a set of personal forex trading strategies that you would like to test.
- Adjust strategies based on your results.
- Open a PaxForex Live Trading Account the moment you get a constant trend of positive results in the demo account.
- Keep using a PaxForex free demo account to make sure all of your new strategies will actually be profitable.
It is very important for you to initially focus on one major currency pair rather than spreading your learning over many currencies. This would limit an information overload and give you the opportunity to trade sooner and with better results.
Feel free to use PaxForex demo account for free as long as you feel comfortable and contact us if you want to know more about it!