Learn and improve risk-free with a forex trading demo app
If you are a beginner trader and you are still having trouble getting to grips with how the market behaves or you just want to test your trading strategy, a forex trading demo app can help get you started in minutes.
While educating yourself about basic forex terminology and concepts such as margin requirements, stop-loss orders and spreads may be useful – hands-on experience with trading on the platform can prove invaluable.
Trading on a demo account
No matter with which broker you decided to register, you should be able to open a demo account via your dashboard as soon as you log in. You can then launch your trading platform, make sure that you are using your demo account login details and start trading for free.
Most brokers fund demo accounts with $50,000 by default but you may have the option to select the amount you prefer instead. You can use this trading capital to open trades, test your trading strategy and risk management without risking any real money of your own. However, you should note that trading with paper money and real money is a completely different beast. Psychology and discipline are a big part of learning how to trade consistently and these traits can’t be learned by trading without any real stakes.
Therefore, you should be mainly using your broker’s forex trading demo app to learn the basics of the platform and familiarize yourself with how the platform and the market operates. Moreover, you can learn how to use technical indicators on your charts, see how your open trades affect your equity, as well as how key economic announcements and news affect the markets.
A forex trading demo account is also the perfect opportunity for you to learn about the different tradable assets your broker provides, how they are traded and their trading conditions including spread, position sizing and margin requirements. Forex pairs are just one of the asset classes available since most of the time, you will also be getting access to stocks, cryptocurrencies, precious metals and various commodities like oil and coffee.
When you feel confident enough in your ability to make sound decisions and found ways to minimize your risk exposure, you can start trading on a live account with real money.
Practice from your mobile with a forex trading demo app
A big benefit of a forex trading demo account is that it’s the easiest way to learn how to use your broker’s trading platform without investing real money. If you aren’t comfortable with the trading platform, you can just try a different broker.
CM Trading offers both desktop and mobile trading applications and for mobile you can either use the CMTrading Sirix Mobile forex trading demo app which can be found on the play store and app store for Android and Apple devices respectively.
However, since CM Trading offers MT4 accounts, you can also download the official MT4 app on your mobile to log into your account. Both platforms are robust and versatile enough with plenty of useful tools to help you succeed in trading, but Sirix also offers social trading features which allow you to copy the trades of more experienced traders and profit from their trades automatically.
So, if you are interested in investing in forex but don’t have the time to learn how to trade manually, you can always just copy the trades of other professional traders through your mobile forex trading demo app while also getting insights into their trading process including their entry points and preferred currencies.
As a frame of reference, most experienced traders state that you shouldn’t trade with real money until you have been trading on a demo account for at least 6 months to a year. If you can develop a trading strategy that provides consistent results on a regular basis – you can make your transition to a live account and start trading with a real deposit.
Until then however, the forex demo trading account is one of the best ways to gain real trading experience risk-free