Forex practice is the only way to become a real leader in the market. No matter how much capital you have to invest in trading Forex, no matter how high the quality of your industry contacts, you’ll never rise to the top without practicing your trades and developing a greater understanding of the market and the software you use to conquer it.
Most brokers allow traders to open a Forex practice account for free. A Forex practice account is the same as a standard trading account except that the orders placed are hypothetical and are only intended to allow a trader to see how a particular order would have performed. The freedom that hypothetical trades allow new trader leads to far more experimentation and in depth analysis than would otherwise have been possible. For this reason Forex trading in the 21st century has been marked by increasing innovation and highly technical trading approaches.
Two developments have ushered in the era of the practice account: the emergence of the online broker and the development of highly accessible and effective trading platforms such as Metatrader or Unitrader. An online broker provides all the tools that a trader needs to get started as well as some friendly advice. Though online brokers don’t usually charge for Forex practice services, they know that if a trader is well treated and that if their simulated trades are successful, it is likely that the trader will upgrade to a standard account.
Not all brokerages are created equally. Some may be aimed exclusively at big money players who want to open a standard account immediately; such brokers may not offer practice accounts or may have little time to guide new traders. Other brokerages can be inefficient or even scams. Take your time when looking for a broker, if you find the right one you can be sure that nothing can hold you back!