Getting a Forex Demo Account in 2018: Things you need to know

Retail Forex brokers have enriched the industry with a customer-friendly innovation; nearly all FX brokers provide customers a lot of prospects with a free Forex demo account. “Paper trading” not only provides a non-binding insight into active trading in the FX market but also a way to test strategies and to learn more things about the broker. With the virtual capital, you can test “real” trading strategies and perform experiments.

With some brokers/providers, users, however, have to reckon with obsolete rubbish like taking courses, limited access to features, and the annoying phone calls.
Nevertheless, the search for a provider with a good forex demo account is quite a good idea and not just for the beginners.

Differences between trading in a demo account vs. live account
Trader should be aware that every Forex demo account also serves the interests of the broker who offers it. Unless explicitly stated otherwise, the terms and conditions differ more or less from those in the live account. The spreads can be narrower, which has a positive effect on the (paper only) results.

The more precise the possible differences are named/mentioned, the better. For example, highlighting possible deviations between live account and currency trading demo especially regarding exotic currency pairs. The demo account details that need to be acknowledged prior to its activation should state: “Due to the illiquidity of some of these markets, ABC broker allows its customers to trade on the demo system through a pricing system that generates indicative prices and may not Represents live tradable prices. Therefore, for example, a 5 million trade in an exotic currency could be virtually impossible in a “live” account, so a corresponding trade in “demo” mode would not be possible in the real world.”

But what exactly makes a Forex demo account important to the trader and the provider? First and foremost, of course, it’s about knowing whether a demo account, especially in the Forex area, makes any sense at all to have. If this is not the case, traders could also resort to completely different providers who have no demo account in their offers so far. In fact, more and more traders are choosing to give the demo account at least some decision-making power when it comes to finding a broker. Many brokers are fully aware of this fact. Again and again, they are compared to each other in online reviews like this one.

Major forex provider, are generally known to have different types of trading accounts; a demo account can be very useful to see the difference in this account types.
Online reviews do not only refer to the offers of the brokers, but also to whether they are legitimate or not. So before traders open an account, make a deposit and put in a balance, it can be a good idea to take a test and also take a look at the features using a demo account.

For the trader, such a demo account offers the opportunity to get to know the trading platform and forex trading completely without any risk. Also, to test different strategies and in this way to get a feel for trading. Especially when looking for your own strategy, it is important not to put everything in a single basket/card. Instead, traders should take time to test different strategies and then perfect them. However, the credit does not shrink in this way, it is advantageous to be able to use a forex demo account without worrying about losing real money.

Of course, a demo account also has its advantages for the broker. The relationship and trust between broker and trader is a sensitive topic, which has to be set up in peace and quiet. Here, there is some money in the game. By offering a demo account, the broker can create a basis of trust and thus win over customers. Many brokers make use of a demo account with certain conditions. There are brokers who provide a demo account only after signing up and making a first deposit.

Using a forex demo account can bring traders and brokers alike some benefits. Therefore, it may well be worthwhile for the trader to start looking for a provider that gives the forex demo account with no or minimum conditions.

If a demo account is to be used parallel to the live account, its unlimited activation/availability should already be considered in the broker comparison. Many platforms provide demo accounts for a limited period of time (typically about two to four weeks.). For example, AvaFX states that the use of the demo account is possible for interested parties until they are in a position to open a live account. However, a time limit is not mandatory, as a glance at other brokers shows. Admiral Markets, for example, provides an unlimited Metatrader (MT4) demo account for FX and CFDs.

Users only need to log in once a month to prevent automatic deletion of the account (including all history.) Also with Plus500, no time limit is present – the broker insures moreover an “exact agreement similar to the real trading conditions.” This is by no means a standard. Whatever the reason, some brokers operate around their platforms a veritable “secrecy” and provide demo accounts only with outdated rates (sometimes weeks or months ago and completely static.)

With this Forex demo account comparison, it quickly becomes clear how different the maturity of the demo accounts actually is. Traders who would like to benefit from a demo account throughout the term of the brokerage account do not have that much of a choice.

Traders who have decided to use a forex demo account should look for a few pointers when looking for a provider. Below are the key points that play a role for the trader.

Access to the trading platform
Whether it’s MT4 or perhaps a trading platform developed by the broker itself – the platform is the most important basis for Forex trading. So if you are looking for a forex demo account, you should make sure that the demo account also ensures access to the trading platform. For some providers, there is no possibility to really use all features of the platform. Of course, especially in terms of the trading platform, this is not an optimal solution for the trader.

Timing as a criterion
As mentioned earlier, there are some providers where the Forex Demo Account is only available for a certain period of time. This demo account can be used for a few days, weeks or months, for example. Some brokers also simply limit the existing play money; they only provide a certain amount. If this is used up, the account can no longer be used. Partly, some brokers do fill up the play money again. But that’s more the exception than the rule. Basically, it is optimal that the Forex demo account can be used indefinitely. After all, it is a good help not only for the first steps in Forex trading, but also for experienced traders who want to adjust their strategies, it can make a lot of sense.

Amount of the credit
From 100 dollars to 100,000, the [virtual] credit can vary a lot. Each broker put on the credit for the Forex demo account differently. Therefore, the credit is also one of the points that should be considered. Normally, before signing up, you will be told how the balance in the forex demo account is composed. This can be a fixed amount that each trader receives. It can also be an amount made dependent on the deposit. That means, if the trader pays 100 dollars, he gets 100 dollars play money or maybe double the credit for the Forex demo account. Depending on the purpose for which the demo account is to be used, a high credit balance is of course always the better choice.

Fees for the broker
Getting a forex demo account without registration, there is, only very rarely today. Every broker like to have the trader register first, before the demo account is made available for free. Although there are still isolated demo accounts you can get without registration. But here an intensive search is necessary. So if you would like to use a forex demo account, you should keep an eye on the fees that are incurred when concluding a trading account with the respective broker. Transparent fees are a must for a good broker.

What about technical trading?
In forex trading, technical analysis and news trading are an important strategies and basis to be able to act quickly and effectively. The ideal forex demo account makes no compromises here but offers full access to all strategies. In addition, it provides the latest news. This has two advantages for the trader. He can get an overview of the different types of strategies and learn to use them for themselves. At the same time, he can find out how the news can influence trade.
There are very different points that a Forex demo account should ideally serve. From a free and unlimited use to a full access to the trading platform, everything is important here.

Data collection and sales department
Most brokers also require prospective buyers to provide full details of their name, address, and depending on the country of origin of the provider, information on their trading experience and financial background, in order to activate a demo account. But legal reasons are at least secondarily decisive. A relatively short time after the opening of the demo account, the telephone usually rings and the broker’s sales department launches its “Welcome Call.” For newcomers, this is a customer-friendly service because the call center agent can help with understanding problems and explain the functionalities of the platform. Experienced traders who want to focus solely on the demo account may feel bothered by the calls.

Also with regard to the questions at the opening of a demo account, there are big differences in the market. The etoro demo account does not even ask for a name/postal address, but is satisfied with an e-mail address or a social media account. A telephone number is required, though. A tip that is least-used, if you accidentally give the number of rarely used second hand phone, then you usually do not have to fear blocking of your demo account.

So, if you are interested in using a Forex demo account, you must be prepared to provide your personal details. Only a few providers will do without this query. However, the idea of specifying a wrong phone number can quickly backfire. Many brokers make a first welcome call. If you then notice that the telephone number is incorrect, this may lead to the account being blocked.
Giving data for opening a Forex demo account is not uncommon. If you want to use a demo account, in most cases, you have to be prepared to give your address and telephone number.

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