[ExecutiveIncome2You]

Many brokers offer a demo trading account to new traders. Brokers offer this practice account option so traders can learn trading strategies & test out Forex software they have may have purchased. While these accounts can be very helpful, there is a problem.

Every broker I've ever worked with that offers a practice account loads it with $50k virtual money.

Unless a new trader has $50k to actually invest in a real trading account, this $50k practice account doesn't give a trader a realistic sense of what his trading experience in real time will actually be like. $50k is a large starting investment & it may give new traders the idea that they can trade carelessly & get away with it or fail to analyze the market correctly or skip some of the automatic signals they may be getting from a Forex signal service.

Solving this problem is simple. When trading with a practice account to get the feel of trading Forex with a new broker, only use the amount of money to trade that you intend to place into your real account. Using a realistic investment will give you a much more realistic trading experience, allowing you to be a more effective Forex trader when you decide to make that first real deposit, just remember that there is no substitute for real time trading experience.

[Devilish]

Originally Posted by ExecutiveIncome2You

Many brokers offer a demo trading account to new traders. Brokers offer this practice account option so traders can learn trading strategies & test out Forex software they have may have purchased. While these accounts can be very helpful, there is a problem.

Every broker I've ever worked with that offers a practice account loads it with $50k virtual money.

Unless a new trader has $50k to actually invest in a real trading account, this $50k practice account doesn't give a trader a realistic sense of what his trading experience in real time will actually be like. $50k is a large starting investment & it may give new traders the idea that they can trade carelessly & get away with it or fail to analyze the market correctly or skip some of the automatic signals they may be getting from a Forex signal service.

Solving this problem is simple. When trading with a practice account to get the feel of trading Forex with a new broker, only use the amount of money to trade that you intend to place into your real account. Using a realistic investment will give you a much more realistic trading experience, allowing you to be a more effective Forex trader when you decide to make that first real deposit, just remember that there is no substitute for real time trading experience.

Hah, I always thought about this. It's like burning cash you found on the street by getting a massage or something like that.

You're right on, and I agree with you.

[aaasset]

Originally Posted by ExecutiveIncome2You

Many brokers offer a demo trading account to new traders. Brokers offer this practice account option so traders can learn trading strategies & test out Forex software they have may have purchased. While these accounts can be very helpful, there is a problem.

Every broker I've ever worked with that offers a practice account loads it with $50k virtual money.

Unless a new trader has $50k to actually invest in a real trading account, this $50k practice account doesn't give a trader a realistic sense of what his trading experience in real time will actually be like. $50k is a large starting investment & it may give new traders the idea that they can trade carelessly & get away with it or fail to analyze the market correctly or skip some of the automatic signals they may be getting from a Forex signal service.

Solving this problem is simple. When trading with a practice account to get the feel of trading Forex with a new broker, only use the amount of money to trade that you intend to place into your real account. Using a realistic investment will give you a much more realistic trading experience, allowing you to be a more effective Forex trader when you decide to make that first real deposit, just remember that there is no substitute for real time trading experience.

Also, based on my experiences, trading on a demo and live account can be very different in terms of spreads, pricing quotes and such. Do take note of this

[daniellefr]

I absolutely agree that you have to trade demo as if it is life, meaning the amount should be realistic, otherwise what's the point?

[aaasset]

Originally Posted by daniellefr

I absolutely agree that you have to trade demo as if it is life, meaning the amount should be realistic, otherwise what's the point?

Personally when I started trading forex, I would began with 3k USD which is about $5k in singapore dollars. When I first started I do not have that much and. That has been very helpful till now when I go live with amounts few hundred times much larger, I know that I am able to hold my positions under any form of market situations.

My 20cents: always trade the same amt in the demo as in your live acc as I have mentioned before live acc and demo can be very different so if you can handle a small acc well, the needless goes for large acc.

[jafar00]

In the "Deposit" field of MT4 when you open a new demo, you can type in whatever you want (At least on FXOpen's demo). You don't have to stick to the default options.