Forex Trading With a Demo Account - How to Use Your Forex Demo Account for Best Results

By Tom Floeck 

 

Want to get started with Forex trading without risking your own money? Not a problem. You can just open a free demo account to get a feel for how it works and develop some confidence that yes, Forex trading really is something you can do. Read on to find out how to get the most from your demo account.

What exactly is a free Forex demo account?

A free demo Forex account is just what you might think it is. You basically trade with "play" money. It works much like it would on online casino sites, where you can play in two modes, the free (or fun) mode, and the "real money" mode. Of course, the site owners are hoping that winning with your fun money will get you so excited and confident that you'll want to start playing for real.

The same is true for free demo Forex accounts. That's why brokers offer them. They hope that once you see how much money you can make, you'll sign up for the real deal. And since you have learned trading on their platform, you're very likely to stay with them since it can be a pain to have to learn a new platform.

For beginning Forex traders, those free demo accounts can be extremely valuable. They offer an opportunity to learn how to trade without risking their money. Of course, there's also a dark side...

You need to make sure that you realize the difference between fake money and real money. You see, if you're dealing with fake money, it's not a problem to take big risks. You won't lose a dime. However, if it's your real money, you can lose your shirt.

But let's focus on the positive and look at how you can get the most out of your free account, especially if you're a beginner.

1) Practice what you've learned

If you're serious about trading Forex, you should learn how it works and study up. But theory can differ quite a bit from practice. So what you've learned in the book may or may not work, or it may take some practice to make it work. Fortunately, you can do all the practicing you want in your demo account until you feel that you've got it down.

2) Develop your own trading system

You can also use your demo account to develop and refine your trading system. Without risking your own money, you can safely try out a new system, or one you want to refine, and see how it works. Since sticking with a winning system is so important, having a demo account can also help you practice being consistent.

3) Try out a new robot

Are you eyeing a new robot. It promises you stunning returns, but you're skeptical. Not a problem. Just use it in a demo account first to see how it's doing before you risk your own money.

Here's something you may want to keep in mind though: be sure to "play" with same parameters and account size that you would plan to use in real trading.

4) Try out a new trading platform

Brokers don't all use the same trading platform and with a demo account, you can try out a new one and learn how to use it without risking your own money.

As you can see, a demo account has indeed many benefits and can be a great tool for a beginning traders and more advanced traders alike. Just be sure to watch out once you switch over from your demo forex trading account to the real deal and remember that you're now putting your own money at risk.

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The Purpose of Managed Forex Trading

By Paul Bryan 

The mission of Managed Forex Trading is the provision of Forex-related back office and automation services in the areas of foreign exchange and currency trading. They emphasise that you need to have realistic investment goals. You will also have a professional Managed Forex Money Manager handle your account so that you do not risk your money. Their top priority is to ensure the preservation and safety of your funds. Many other investment firms tell you that you can make the exorbitant amounts that you are dreaming of. However, many people then end up risking their money and leave themselves wide open to losing tremendous amounts of money in what has become an uncertain economy.



Managed Forex Trading has "Integral Flex" Forex Managed Accounts that use a proprietary Hedge Fund Model. This helps to make sure that you do not risk your funds. At the same time it still increases the value of those funds on a consistent basis over an extended period of time. To have this account, you need at least $25,000 to start. There is a 25% performance fee, plus you may be eligible for a 10% initial deposit bonus. Their Fully Managed Account is structured to build wealth over time. This is through using tight money management strategies and common sense that will not risk your funds.

This is why all of their accounts are managed by a live Forex trader, who is stringently managing your profits and losses. He/She is always looking for the highest probability of profitable trades and will never risk more than 3% of your account on any trade. Additionally, Managed Forex Trading does not believe in using EAs, or other variations of automated software programs, that can execute trades on the Forex market.

Their belief is that it is harder to recoup losses you end up making than to keep your risk low and wait for the Forex market to present opportunities to make profits. This is why the Forex market usually has investors who have large accounts, as they can afford to wait for the market to present those opportunities to gain profit. This is the reason why Managed Forex Trading states that your account profit potential is 10% per month with minimal drawdown.

Therefore, if you are expecting unrealistic gains of 20-30% per month from the Forex market, Managed Forex Trading's program is not for you. This is because they believe in a long-term investment strategy that gains consistent profits and minimises potential losses over the long period. The alternative strategy of risking much of your funds for major gains is a strategy that often leads to major losses, and in extreme cases, even total wipeouts of your account.

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