What is the point of a demo account?
What is the point of taking $50,000 fake money and trading it to see how you'll do? Well, supposedly the point is to learn to trade Forex better, to test trading strategies and trading signals, and to see how your strategies and systems perform when it's really time to start trading. Sounds great right? Well on one hand it is, and on the other, it could use some improvement.
$50,000 Forex demo accounts do sound great, but there are really some fundamental things that could use improvement. First, some people don't start out with $50,000 in their accounts. While some traders do, many people start out with a much, much smaller amount, maybe even $25 with a micro account. Sure, they might feel all confident trading with that big $50,000 demo account for the past month, but is that realistic training for trading with a much smaller amount? It's debatable.
Now, many brokers are offering a light, a new way to trade and to really learn how it's going to be when you're trading on a real live Forex account, or at least as close to the real thing as you can possibly get. They're giving you demo accounts that allow you to place any amount of fake "money" in it that you would like, a nice benefit when trying to learn the ropes of Forex trading and really get a hang of what you're doing. These demo accounts can let you test your trading strategies, your Forex trading signals, and the way you would like to trade Forex, letting you know how to be successful and what to do in order to succeed in Forex.
Forex trading systems can also be tested on these demo accounts. EAs are particularly great to test before you begin to use them because it helps you make sure that they're high quality and that they're going to give you the most profit possible in Forex. By testing your EA on a demo or a live account, even if it is a micro account, you can get a good feel for the profit potential of the Forex trading system that you're planning on using !!!! Now you shoud know forex demo contest.
