Forex practice account uptake is currently at its highest ever rate. A simple explanation for this is that in recent years Forex trading online has exploded causing a massive expansion of the market in general. Much of this growth can be attributed to the steady rise of reliable, effective online trading platforms such as Metatrader. Another reason for this growth that is not so well documented is that new traders, perhaps because of the easy availability of Forex info and analysis, are more confident in their ability to predict market fluctuations, often disastrously so.
These days the number of people who think they understand Forex dynamics, jump right in with big trades, and lose a fortune is staggering. So what do you do if you think you’ve discovered some niche or hidden working behind the market? Our advice is simple: don’t gamble, open a Forex practice account.
A Forex practice account let’s you make trades against real Forex information but without staking real money. This lets you see how your trades would have worked out and it can be an eye opening experience. Forex trading software like Metatrader usually includes some form of practice account.
If you think you have identified some trend in the relationships between certain currencies or commodities, or something to do with their relation to world events, test your theory carefully. If you’ve identified something really valuable it should stay valuable at least as long as it takes you to complete your research.
Once you’ve nailed down your strategies it’s time to open a standard account. With a standard account you’ll be trading with real money and most brokers will require an initial deposit of between $1000 and $10000. Trading with a standard account means risking real, potentially devastating loss. However if you take your time at the planning stages and prepare a solid strategy you should find your trades to be a resounding success.