Foreign currency demo trading is a great way to test a forex trading strategy. Most forex broker’s offer this service, allowing you to test your forex trading strategy with virtual risk free money, some forex broker’s offer this service for a limited period (as low as 1 week) and some offer unlimited currency demo trading. It is recommended that you test a forex broker’s platform for at least a month, at different times of the day and during different market conditions (including before, during and after news releases) to ensure you are aware of any limitations the forex broker’s platform may have.

Currency demo trading is also a great way to test what other services a forex broker offers. Many offer additional services that may help with your forex trading decision making, some common services are: real time charting, streaming news feeds, research reports and market analysis. A currency demo trading account will allow you to develop essential forex trading skills like placing orders and entering stops and limits before you have the stress of dealing with real money.

Most of the time, a trader will open a live account with the same company they held a currency demo trading account. Therefore before you open a currency demo trading account it is worth spending a bit of time thinking about what features you would like and comparing what different forex broker’s offer and at what cost.

Before you start currency demo trading you should have a plan. What strategy are you going to trade? What are you entry and exit rules? How will you manage the trade when it’s in profit and when you’re losing? What hours of the day are you going to trade? How will you react to news releases? What will you do if you have a run of losses or a run of winners? A well thought out trading plan that answers these questions is essential to avoid letting your emotions take control.

Learning a currency demo trading platform is much easier than learning to trade forex. Learning the basics of forex trading is essential for success. The internet and e-books can provide a lot of useful information to get you started.