First and foremost, not everyone is going to fully fathom the ins and outs of forex trading. While you may understand the basics of currency pairing and how they operate, nothing beats testing your knowledge by trading in a risk free environment. With this in mind, you should know that most Forex Brokers give you access to something known as a forex trading demo account.
Rakuten traders allow you to open one of these in a matter of minutes. Once you have you’ve registered as a new Rakuten trader you can now start placing trades in a real money environment but with a supply of forex demo trading credits. Profits made when using a demo account are not yours to keep since they are paid out through additional demo credits. However, the one advantage of having this type of account is that you’ll never risk losing your own money while you try to master the online trading environment. There are trading demo accounts for stocks, CFDs, Bitcoin & others where you are able to learn the basic knowledge and skills for trading. You can find a comparison of these free exchange demo accounts, or “Börsen Demokonto” as they say in Germany, on the Kryptoszene website which should help you to opt for the best one.
The basics of forex trading demo accounts
Even though demo accounts are very normal, they cannot be used as real accounts. For instance, you can use your Rakuten demo account to play an online game which you can lose or win multiple games. Regardless of the outcome, nothing will impact the card or the cash account associated online with the particular game. This is because, a demo account is just provided for users just for practice and to understand how to use it when real money is involved.
Forex trading demo account
Ratuken traders provide users with a demo accounts for forex trading. Since they provide you with access to the live site which has real data it allows you to practice and get better at forex trading. Get to enjoy multiple benefits by using a forex trading demo account. Some of them include:
• Since demo accounts are for practice you never gain or lose anything
• You get a more clear understanding of the strategies used in forex trading
• You experience the transition of real data as well as the live speed and pace at which changes in forex trading occur
• You get to understand the mechanism behind forex trading
Features of demo trading accounts
Forex trading demo accounts have a few remarkable features which come appreciated as real forex trading accounts. Some of the features include:
• Trading online throughout 24 hours and 5 days of the week
• Buying and selling prices at real live values
• Bulk virtual money is credited in forex trading demo accounts
Although this type of accounts tend to inherit the features and abilities of replicating in the real markets, sometimes they operate in an environment that is 100% simulated. This is why there will always be major differences that differentiate them from real forex trading accounts.
How to pick the right forex broker
Shopping around will allow you to actually compare what is being offered by each forex broker. This will enable you to pick the one that will provide you with a fully tailored service. You should know that different traders have their own demands and wants. This is where you are advised to take a step back and go through each of the benefits and unique features being offered to you by different brokers. Here are some of the things you should look for in a forex trading broker:
• High level security – this is the first and foremost character that a good broker must have
• Ability to deposit and withdraw
• Affordable rates of transaction
• A stable and user friendly trading platform
• Good customer service – a broker that can be easily contacted when problems arise
It is important that you open a forex trading demo account before diving headfirst into the world of currency trading because it will help you familiarize with the concepts involved in foreign exchange. With that in mind, ensure that once you have thoroughly gone through this guide, you make use of Rakuten forex traders by opening a demo account with them.