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What Is a Forex Demo Account?

by James Musoba
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Forex trading is becoming more and more popular every year. Experts explain such a trend by the remarkable volatility of the global economy. Currently, the daily market turnover is over 6 trillion USD. Such a tendency contributes to an increase in the competition level within Forex.

Intense rivalry frequently scares novice traders. That’s why experts advise the beginners to start trading by opening a Forex demo account. The latter is better to create on the sites of reputable online brokers (for example, FBS). It will help to avoid various troubles in the future.

Key Forex Demo Account Features

Such a profile allows dealers to trade without the risk of losing real money. That’s because traders use virtual funds when applying a demo account. Moreover, such a profile allows dealers to independently choose the right moment to switch to trading with real money.

Benefits of Demo Accounts

Such a profile is some free Forex practice. Here, dealers can trade in real conditions without spending their funds. Also, using demo accounts, the traders may:

  1. Explore a specific trading platform. The demo profile lets dealers get acquainted with the terminal’s tools, indicators, charts, etc., in detail without fear of making a mistake. Such an advantage may be useful for beginners and those wishing to change the trading platform.
  2. Learn to control emotions. Usually, novice dealers feel a sense of euphoria and self-confidence after making several winning trades. Therefore, unsuccessful transactions and the loss of real money change their mood dramatically to negative. Due to such emotional swings, a feeling of insecurity appears in the dealers’ minds. Using a demo account helps to adapt to market changes without negative psychological consequences for the novice traders.
  3. Test educational and self-made trading strategies. The free profile opens up a lot of creative possibilities.

Additionally, a Forex demo account allows choosing the appropriate trading schedule. With a free profile, dealers can create the most efficient timetable.

Making a Trading Plan Using a Demo Account

With a free Forex profile, traders can determine the most suitable:

  • goal for switching to a real account;
  • currency pair for them (e.g., EUR-USD and USD-JPY are in great demand);
  • tools, indicators, and trading strategies for trading with actual funds.

Such an approach allows the creation of a template for trading on a real account. And the plan helps avoid significant financial losses.

How to Open a Demo Account?

The creation of a free Forex profile is quite a simple process. It doesn’t take much time. Nay, it’s a gratis procedure. So, first, traders need to contact an online broker. The latter should be provided with basic information, which includes a dealer’s:

  • actual name and surname;
  • birth date (as in the ID);
  • email and phone number (if necessary).

Next, traders obtain the password to their free profiles. The dealers may change the passcode anytime. Then, the traders have to confirm their emails, select the profile type, and choose a terminal. After that, the registration procedure is finished. To create a reliable and safe Forex demo account, dealers may visit fbs.com.

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