An amateur boxer getting into the ring with a pro without adequate training would put themselves in serious peril. Getting into the forex market without having any experience puts one equally at risk. That’s why forex demos exist to recreate the conditions of forex trading without any real risk. Starting off with a forex demo makes a lot of sense for an investor. Only so much can be learned from books and online tutorials. To achieve real success one needs to get practical experience. A forex demo provides this experience without the risk of blowing one’s investment. Practicing first without any real money involved can save a lot of money in the long run.
Brokerages and other financial web sites often provide forex demos in the hopes of gaining new clients from themselves. Once a potential customer tries their hand at a forex demo they will likely want to try the real thing next. This means 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 hopes that they will want to buy something too. This is why any web site charging for a demo should immediately raise red flags. Since dozens of sites offer demos for free, paying for one makes no sense at all.
Signing up for a forex demo involves getting a username and password, and an introduction to the demo system. Often this entails downloading some software provided by the company. However, some companies enable the demo to be accessed through their web site without downloading any software. Certain 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 fictional investment the fun can begin!
The forex demo allows the potential investor to do all of 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 the trades made in the demo never reach the actual market since no real money is involved. Changes in the real forex market determine how much money the demo user gains or loses within the demo.
Many demo users wish they had been playing for real when the market takes a turn in their favor. On the other hand one could easily thank their lucky stars that no real money was at stake. After using the forex demo for a while an investor becomes familiar with the market and soon can start on the real thing.