FOREX.com Demo Trading Accounts
At the broker FOREX.com, the start way to being your investing journey, is with their free demo accounts. This way, you can learn the ins and outs of the MT4 Forex trading software.
This is an important part of your education in becoming a successful and profitable currency investor. You need to properly understand the way that their software works, so that you will not be stuck when you are ready to invest or make a trade.
It is a good thing that FOREX.com gives all their new customers a free demo account. You will be able to see order types, margin requirements, stop loss and take profit settings.
Demo Accounts vs. Real Accounts.
A Demo Trading Account is the perfect way to practice trading or test your investing ideas. Programmers who build algorithm trading robots, always first test its abilities with a paper money account.
There are a few differences in a demo account, as opposed to a real account.
- The money in your account is paper money, therefore, if you lose $10,000, you can start again.
- Psychologically, investors are not as cautious when using a demo account. Therefore, they make risky trades, and enjoy huge unrealistic profits.
- Any order placed on a practice account gets executed, while real accounts need ample liquidity to ensure trade execution.
- Market prices on a paper trading account are not 100% accurate. Spreads may be show as being tighter than in real market conditions.
- Brokers do not list all available assets in their demo account.
How to Open a FOREX.com Demo Account?
In order to open a demo trading account at FOREX.com, you will need only need a valid email address, and your chosen password.
Go to: https://www.forex.com/en-us/open-an-account/
Enter your First Name, Last Name, Phone Number and Email Address. After you click on Open Demo Account, they will take you to the next screen which shows you how to access your risk free demo practice account. You will received your user name and password in an email.
The demo account is only active for 30 days, and after that, you will need to signup again.
This broker is unique since they offer a choice of trading software. You can use their proprietary web based platform, or the classic MetaTrader 4 software.
Comparing Forex Brokers
Forex brokers like Forex.com are multinational investment houses, offering their trading service to investors all worldwide. Some have restrictions on the accepting clients from sanctioned countries, and others do not accept from leading countries. For instance, American brokers do not accept clients from the United Kingdom and vice versus. It is prudent and responsible to only invest at a brokerage firm, that is licensed by your local government’s financial watchdog.
Local brokers are better because of a few reasons.
- They are licensed in your country, and your money is secure.
- Spreads on Forex pairs with your local currency are tighter. For example; American Forex brokers have tighter spreads on EUR/USD than a Bermuda or Belize based Forex broker.
- Latency, which is the amount of time it takes to confirm an order, happens faster. Although the internet is very fast, you may find latency issues when connecting from Singapore to a broker in London.
FOREX.com Summary Review
FOREX.com is a licensed and regulated Forex broker with offices worldwide. FOREX.com gives their Forex investors and day traders alike, the ability to invest in a regulated trading environment.
They have a wide range of products to trade CFD’s. You will find Forex Currency Pairs, Crypto Currency (Bitcoin, Ethereum, Ripple), Commodity (Oil, Natural Gas), Shares / Individual Stocks, Precious Metals (Gold, Silver, Platinum etc.) and Market Indexes (S&P 500, Nikkei, Nasdaq).
This broker is licensed and regulated in the United States by the CFTC, United Kingdom by the FCA, and by Cayman Islands Monetary Authority.