Forex trading demo accounts

All online Forex trading platforms offers to its clients two types of trading accounts: demo account and real money account. The demo account, also known as practice account has some special features giving it several advantages over the real money account.

First of all the practice accounts usually have a starting bankroll of $100,000 to use for live trading. This money is not real, its only virtual funds that can be used to simulate real trading. The profits made using it cannot be withdrawn, being also virtual money.

The trading platform is the same for both accounts, giving the client the chance to check it out and see how it works. This way he can familiarize himself with the interface, instruments, graphics and trading methods.

Beginner traders should start with a demo account and practice on it a while. Few successful trading sessions does not necessary mean that future trading sessions will be the same. That is why beginners should start trading on real money only when they are really prepared. In Forex no one has any guarantees that will make profit, so traders should trade only money they can afford to lose.

Due to its advantages, demo accounts represent a good option for both beginners that want to learn Forex and experts who wish to check out the trading platform before making a deposit.