Trading with a forex demo account is similar to a trainee airline pilot training in a flight simulator. He needs to fly the simulator before he can fly the real thing.

As a new forex trader, you have to become familiar with your trading platform, how to trade, how to use all the tools and indicators in your trading platform.

You have to see what making money and losing money in real time feels and looks like.

Therefore, opening a forex demo account to practice trade for a while before committing to real live cash to trade is imperative for new traders wanting to trade forex.

 

How To Open A Forex Demo Trading Account

Opening a demo forex trading account these days is really simple. It will take about 2 minutes.  Here’s how:

1. Search any forex brokers online and see if they offer free demo accounts on MT4 trading platform. If you decide to open a live trading account with a forex broker then it is important that you read my 5 steps on how to choose a forex broker.
2. You click the link to open a forex demo trading account
3. Fill in the details
4. Download the MT4 trading  platform to your computer.
5. Open it up and that’s it. You have a demo account.

So here, I have listed…

37  Advantages Of Having A Forex Demo Trading Account And What It Teaches You

1. Become familiar with the trading platform. The most popular trading platform is the Metatrader4.

2. Become familiar about the different types of MT4 order types

3. You learn how to place stop loss and where to place it

4. Learn what a trailing stop is and the best way to use a trailing stop

5. You learn how to place a profit target and where to place it

6. You see and learn how to suffer a trading loss

7. You see and learn how to make a trading profit

8. You learn trade different contract sizes and see how it affect your profit or loss.

9. You start to learn about how price moves and so you start to understand about price action. Check out my free price action trading course

10. You start to see and learn about support and resistance levels and see how price reacts on this levels.

11. You see what spread means in real time when you take an order

12. You learn to use different forex indicators, testing and figuring them out.

13. Your learn to develop ideas or trading ideas on how you can trade the forex market

14. You learn to trade in different timeframes,  from 1 minute timeframe and also you learn to trade in the larger timeframe.

15. You begin to understand fully what a pip and how much one pip equates to dollars because of the loss or profits you make.

16. You began to see what a balance in your trading account means

17. You begin to understand what equity in your trading account means

18. You begin to see and understand what margin and free margin in your trading account means.

19. You begin to know and understand all the forex currency pairs on your charts and their symbols.

20. You begin to see and realize that some currencies have huge spreads!

21. You also begin to see and realize that some currencies have low spreads.

22. You also begin to understand that not all currencies may move as much during certain periods during the day because of the different trading sessions.

23. You learn to blow up your forex trading account many times…the good thing is you are not risking real money.

24. You begin to see and understand what bid and ask price means.

25. You begin to learn and understand the difference between a candlestick chart and a bar chart

26. You learn to use and draw fibonacci retracements

27. You learn how to draw trendlines and begin to understand and see how price reacts when it comes to them.

28. Your learn to draw upward channels

29. You learn to draw downward channels

30. You learn the meaning of what is to make money when the market is going up and make money when the market is going down.

31. You begin to see trends, understand trends and study more about trends.

32. You begin to know and identify the different kinds of candlesticks on the charts, like bullish and bearish reversal candlestick patterns.

33. You begin to try or use and learn how to use moving averages, one of the most popular indicators

34. Also, you begin to learn how to use the MACD to trade

35. You learn the characteristics of bollinger bands and how to trade them.

36. You learn about how to use the parabolic SAR on your charts

37. You learn about other forex indicators on your charts but then you realized that sometimes there will be some indicators there that don’t satisfy your needs so you begin to search for those MT4 indicator on google so that you can upload to your charts.

Finally, you realize that you know the trading platform and you know how to use it and this gives you the confidence to open a forex trading account with a forex broker. You are on your way to trading forex.

Whether you profit or not is left to be seen…but you are excited, you are now trading forex for real using live money, real money.