If you are new to trading and would like to see what foreign exchange is all about or you are you are simply looking to test new strategies then this is for you. Sign up for a Rakuten forex demo account today and experience the live market risk for free. It will only take you a few minutes.
Here is how to get started:
- Sign up for a forex demo trading account
- Trade on any device
- Experience the live market
- Get a quick-start guide for forex trading
Even though forex demo accounts are useful helpers, they can also cause harm. This is why you need to know the prime purpose of opening a forex demo account, how to use it and when to migrate to a live trading account. But first things first.
What is a forex demo account
Currently, forex demo accounts are being offered by almost all forex brokers including Rakuten. In a nutshell, a forex demo account is a virtual account that is connected to a real trading platform. Even though demo accounts have virtual money, they receive real data on the market.
What this means is that you can close and open trades and it won’t cost you a dime. However, your trading commands won’t really be sent to the market, don’t worry you won’t notice the difference. Realistically, forex demo accounts simulate real trading. When you look at this concept for the first time you will realize that the only is money, virtual vs, real money, but if you take a closer look and take in more details you’ll find out more.
When should you use a forex demo account
Using a forex demo account comes in handy in two situations. One is when you are a rookie trader and the other is if you are not familiar with forex trading. A demo account will allow you to test our trading platform and learn the basics of trading.
The key to forex trading is being able to control the trading platform. Therefore, you should never trade with real money without knowing how and when to open and close a trade. This is because trading with real money invokes emotions thus resulting in stress and pressure. You must always know exactly how to open and close a trade as well as how to stop your loss and take your profit.
The difference with live trading is that the aforementioned steps should be done quickly and without any mistakes. Here, there is no time to figure out what to do or where to click let because even the slightest hesitation might cost you a hefty price.
Once you have gotten your way around a trading platform and you have at least basic knowledge in forex trading, only then can you stop using a forex demo account and move to real trading.
Why are forex demo accounts important?
First and foremost, it should be emphasized that trading in the forex market is affordable for everyone. Having a real micro forex trading account is something that most students can be able to afford. However, remember that all traders are advised to take their first forex trading steps with small amounts of cash.
The main reason behind this is the fact that demo accounts cannot teach a rookie trader the psychological aspects of the business. In additions, trading with a forex demo account for too long makes zero sense. Rakuten forex recommend that after a week or two of trading suing your demo account, you should move to a real trading account. While suffering a loss at this point might be devastating, the lessons learned and experience will offer you more than what a year trading with a demo account would.
At Rakuten traders, we highly recommend that you open and use a forex demo account because it can be enormously helpful. However, keep in mind this type of account is not a tool to be used in the long run.