Forex Demo Account - What Are They Really
Forex practice accounts allow you to trade the forex market while not putting your hard earned capital at risk. These accounts are often also called forex demo accounts, these accounts should be free - so if a forex broker is trying to charge you for one - just say no thank you and look for another broker.
Most forex practice accounts will work for approximately 30 days, some are longer and some are shorter it all depends based on the broker that you choose to open your practice account with. We have found many forex brokers even let you continue to use the account for longer than the time period that they say it the account is for. However, other brokers will discontinue the account as soon as the time frame is expired.
Forex brokers offer forex practice accounts to people as a way to get other people interested in their forex trading tools and use their forex broker services. As a result - they will collect some basic contact information from you when you create your forex practice account. Depending on the broker, they may call you and see how you are doing with the account and see if they can help you get started in a live account. Remember brokers get paid a commission only when you are making trades in a live forex account not the forex practice account.
Our advice is to use a forex practice account until you have tested your forex trading strategy and are comfortable trading the foreign currency market. There is nothing worse than making a mistake in a live account, especially when its something that you should have learned not to do in your practice account. If you aren't sure yet of how you are going to trade the foreign currency market and you are looking for a simple and easy to use system that will take about 15 minutes to use - you should check out Freedom Rocks - it is an effective and simple to use forex trading system.
We have learned a lot using forex practice accounts to test out different strategies and test new theories. Often times we will be running anywhere from 3 to 5 practice accounts at the same time just to try out different forex theories. Some brokers make it easy to have multiple accounts and other brokers make it hard. The broker we use allows us to create new practice accounts in just a few mouse clicks and they don't care how many practice accounts you have - as a result - it makes it a lot easier to test theories on their software as opposed to other forex brokers.
Even after you have been trading the forex market for a many years you will want to experiment and try out new methods of trading and that is what forex practice accounts are great for. Test your new forex method without putting any money at risk in a practice account.