Forex trading is a serious business, but you’d be amazed at how much a bit of play money can teach you about the ups and downs of currency markets.
Registering for a forex demo account lets you get serious about playing the markets, putting only pretend cash at risk. You can try trading in a simulated environment straightaway using virtual funds. For new traders in particular demo accounts can be brilliant, letting you get a feel for what to expect later when hard cash is at stake.
If you’re new to forex trading, starting out with ฿40,000 in virtual funds will give you enough wiggle room for a sensible trial period where you can test out different trading instruments and analysis tools.
Why demo when you can have the real thing?
What’s great about demo trading is the freedom it gives you to gamble with play money while refining your trading skills – preparing for that fateful day when you put your own capital at risk.
Alongside access to leading trading platforms like MT4, you’ll gain access to economic calendars, educational resources, commentary and analysis from market experts, and a support line where you can go for help when you run into something unexpected.
Even if a trading bet leads to a loss, it’s a pretend loss. You can chalk it up to experience and be that much more aware of potential bugs in your strategy.
You can educate yourself inside the demo account against real market data, using its trading tools, customer support services and educational resources. Using these will give you a flavor of what the broker will be like to deal with if you become a paying customer.
Forex brokers use actual market data in demo accounts to simulate real-life trading conditions. The brokers provide them to attract new prospects by helping them experience how currency markets operate. Novice traders can also get to grips with the broker’s platform — its interface, functions, menus, and overall performance on different devices, plus discover the range of available services.
Having made enough virtual trades on the demo account, you can start to try out specific approaches like ‘scalping’ and see if they deliver. That will start you down the road of building a trading strategy that reflects your trading style and objectives.
Getting the most out of your virtual ฿40,000
The key to making your ฿40,000 in play money payoff is to trade as though it was real, trading against actual market conditions and maintaining a keep-it-real attitude.
To register for a forex demo account and start using your virtual baht, try these steps:
- Find a few top forex brokers
There’s no shortage of forex brokers out there and any search for ‘forex trading’ will give you loads of choices. Do some research using Trustpilot and other services to work out which ones have the highest satisfaction ratings. Make a shortlist and choose one or two to try out first.
Of course, the number of free demo accounts you can set up is almost unlimited. It makes sense, though, to limit yourself to one or two-three tops. Otherwise, you’ll spread yourself too thin and waste time reminding yourself how each platform works whenever you log in.
- Configure your account settings
Set up your demo account just as you would a live account with the same configurations settings and preferences. Use the instruments and techniques you would put to work if real money were at stake, use the currency pairs you would want to trade for real, and switch on the risk management tools like stops and order limits to keep yourself on-track.
- Use the library
The learning tools forex brokers make available to demo traders can be very high quality, and will be designed to maximize their platform’s features and benefits. Also — they’re free – so use them. You’ll pick up the basics of forex trading as tutorials walk you through the mechanics of the trading platform step by step.
Eventually, you’ll be ready to cross the chasm from simulated to live trading and test your skills against the market. To help mark when that day should be, it’s a good idea to set benchmarks. That might mean hitting a full month of profitable trading, executing your first 25 trades, or reaching 10 percent of the baht virtual funds balance.
Maximizing the uses for your virtual baht will make the leap from demo to live trading that much simpler.