An amateur boxer who steps into the ring with a professional without proper training would be putting himself in grave danger. Entering the forex market without any experience puts one equally at risk. That is why forex demos exist to recreate the conditions of forex trading without any real risk. Starting with a forex demo makes a lot of sense for an investor. You can only learn so much from books and online tutorials. To achieve real success, one needs to gain practical experience. A forex demo provides this experience without the risk of ruining your investment. Practicing first without any real money involved can save a lot of money in the long run.
Brokerage houses and other financial websites often offer forex demos in the hope of gaining new customers. Once a potential client tries their hand at a forex demo, they will probably want to try the real version next. This means that the client will want to take advantage of the paid services offered by the demo provider, such as managed accounts, automated trading, forex trading, or online trading with a forex robot. Offering the demo gives potential investors a free trial in the hope that they too will want to buy something. This is why any website that charges for a demo should immediately flag it down. Since dozens of sites offer free demos, paying for one doesn’t make any sense.
Signing up for a forex demo involves getting a username and password, and an introduction to the demo system. This often involves downloading some company-provided software. However, some companies allow access to the demo through their website without downloading any software. Some demos require the user to have Macromedia Flash installed on their computer. Most personal computers have this plug-in, or it can be easily downloaded for free. After making an initial fictitious investment, the fun can begin!
The forex demo allows the potential investor to perform all the real-world tasks associated with the forex market, such as analyzing charts, examining trends, sharing ideas and opinions with other traders in online forums, and of course, making trades. All trades made on the demo never reach the real market as there is no real money involved. Changes in the real forex market determine how much money the demo user makes or loses within the demo.
Many demo users wish they had been playing for real when the market turned in their favor. On the other hand, one could easily thank their lucky stars that there was no real money at stake. After using the forex demo for a while, an investor becomes familiar with the market and can soon get started with the real thing.
