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How To Get Experience Trading without Investing Real Money

Real market experience can be very risky for novice traders, because in the beginning they have to start with nothing but risk- their hard earned money can be easily lost due to lack of knowledge and practice. However, is it also possible to gain real market experience without actually bettingĀ  the farm? The answer is yes, thankfully!

Many Forex trading brokers offer a demo trading account so that their clients can watch real-time market activity, without trading with their actual money. In such an account, traders trade real contracts at actual prices, albeit with virtual money. Demo trading account provides novice traders an excellent opportunity to learn about the Forex market. In Forex trading, this can be the difference between going bankrupt and learning the ropes without actually fighting the fight. Traders or investors can easily download the trading software and after registering their basic details.

The demo account usually comes with the benefit of learning how to use that specific software or terminal as well. While most terminals come with standard features, some such as Easy Forex come with additional features such as Inside Viewer. Gaining familiarity with the terminal itself can be a critical asset in forex trading. Demo accounts usually have all the features available in a real trading account and are usually free to download from nearly every broker.

Some of the advantages of the demo trading account are as follows:-

1. Easy to understand real market conditions – The best way to understand real market conditions is to watch the market closely to understand what exactly is going on. As it is not advisable for novice traders to take trades in the market without having in-depth knowledge about the market, a demo account is very beneficial, nay, recommended!

2. Easy to learn software by taking trades- To learn the software is not a difficult task for anyone. Novice or experienced traders can easily operate on this software and it usually takes a few minutes to a couple of hours to gain familiarity with the key functions – how to enter an order in the system, how to read bid and ask rates, how to view portfolio balances and how to use the toolbars.

3. Easy to learn charting techniques - The biggest advantage of any demo trading platform for traders is the tick by tick live data thatis not easily available outside the demo system. Another advantage of the demo account is the ability to read and plot charts and indicators that are available on the system. Different terminals come with different features, although almost all of them have the basics- moving averages, RSI,stochastic oscillators, Fibonacci retracement and others.

4. Live market update - Live market news and updates are also available. These help in gaining fundamental insight on factors that have a bearing on the forex market – GDP and other micro/macro economic indicators, employment numbers, etc. Demo trading is thus a boon for novice traders. Through ‘virtual trading’, beginners can understand the market, learn to execute trades, take advantage of charting and other features and at the same time, become a skilled forex trader.

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