We will start this interesting topic with the definition of the first word we come across when we enter the world of FOREX:
This word in English means earnings based on fluctuations in the rate of any currency and it is no secret that quotes on the Stock Exchanges change constantly and this happens under the influence of various factors. The ability to predict the direction of these changes brings benefits to an increasing number of people in different parts of the world. Trading Forex is possible not only with currency but also with stocks, binary options, and other financial instruments. The main thing is to do it based on a premeditated plan and not chaotically.
In the old days, traders had to open their positions by phone, but nowadays all the activities of the Exchanges are translated into electronic format. The “Metatrader” trading terminal allows the operator to carry out his operations anywhere where there is Internet access. Therefore, the trader does not need to get up early and go to a work office. There are no bosses who are required to report on the work done. However, colleagues are also absent, there are only competitors in the whole world who also want to take their piece of “your cake”. The growing popularity of Forex trading is understandable: the daily turnover of this largest market reaches $4 trillion USD.
First steps in trading. Free demo account and check your strategy.
Trading is a very risky business that must first be properly understood. No one guarantees quick and easy earnings, as many advertisements promise.
There is always the risk of losing your deposit, so you must first open a free demo account on FOREX
This demo account, free of charge, will allow you to test your strength and your knowledge, both in theory and in practice, in test mode, learning on the “Metatrader” platform (the most widely used version of this platform is MT4), and understanding the algorithm to carry out buying and selling operations of different financial assets.
You can operate as you wish—this demo account will not provide you with profit or loss.
Naturally, practical training must be combined with theoretical training. We recommend that you learn about the works of the legendary Forex traders: Jack Schwager, Alexander Elder, Richard Dennis, Warren Buffet, etc. Their experience will help you avoid “traps” and learn much more about FOREX trading.
Free Forex demo account
The commercial strategy is another important condition for the preservation and increase of your capital. With the help of such an action plan, the operator systematizes his Forex trading. The free demo account allows you to verify the strategy by technical analysis. The essence of this technique is to compare buy and sell open trades for different time periods. During this time of practice with the Demo Account, a study is made of the signals and patterns of the price history processes, which tend to repeat themselves. For the technical analysis, a file of the quotes made by the trader is needed, which are automatically loaded into the Metatrader terminal. It is not recommended to use this strategy without verification, especially when trading with the help of an advisor.
Therefore, what Forex offers, with the help of a free demo account to novice FOREX participants, is the opportunity to test themselves and test their strategy.
Instaforex offers its clients different types of commercial accounts for different commercial strategies, allowing our clients to obtain excellent commercial performance.
Each of these real accounts is accompanied by its demo account, which is the first help to those who, for the first time, enter this science of FOREX.
Secrets of a successful start in FOREX.
The principle of the behavior of a successful trader is simple:
1. Trade in the way that is most comfortable for you, but with reasonable restrictions;
2. Choose your niche (your market, your financial instrument (asset with which you will trade), the economic calendar, your trading strategy);
3. Understand the professional terminology, the devices of the Stock Exchange where you will carry out your trading, and always remember the risks.
This will help you not get excited and take responsibility for selecting promising offers. Practice shows that trading is available to people of all ages, professions, and nations. You don't need to be a financial genius or an Oxford economics graduate to trade, just do your best and set clear goals.
Today there are many technical opportunities for FOREX market research, so my advice is to get yourself a powerful computer so you don't fail at the crucial moment when you catch the trend and take the best position. Practice placing pending orders, forecasting the spread (the difference between buying and selling currencies), learning how the global markets work during key trading sessions.
Differences between a demo account and a real FOREX account.
Working in the FOREX market is not only a unique opportunity to multiply your money, but it is also a difficult and sometimes very laborious task. It requires good training, both theoretical and practical. The necessary knowledge is provided by tutorials, video tutorials, online courses. The experience comes only after long hours of carrying out both sales and purchase operations with different assets in different time frames.
In order not to incur losses in vain, novice traders use a special FOREX simulator, also called a “Demo Account”.
Regarding functionality and capabilities, it is not at all different from a “Live Account”. By opening it, beginners can access the financial market, observe real quotes, monitor their operations, analyze their behavior. They can trade with other market participants; the only thing that differentiates these "Accounts" is that they are not manipulated with real money, but with virtual money. They are calculated gains and losses, so in this account, you cannot lose anything, but winning, too, will not work.
But, you can trade without fear for the safety of your capital and without being under pressure for fear of making a mistake, so you have to pay dearly with your own wallet, beginners learn the technique of trading, learn to open and close trading orders, determine the optimal size of the lot to risk and learn to use the tools and indicators provided by the Metatrader platform.
The Forex simulator or "Demo Account",, allows you to adjust all the actions to the automatism to be able to perform them quickly and without errors in the future in a "Real FOREX Account".
However, even using such a unique tool, not all people are successful in forex trading. According to statistics, 99% of the people who appeared for the first time in the market lose their deposit, as many are interested in the difference between real and demo currency accounts.
Differences between a demo account and a real FOREX account. Psychology
The main point that distinguishes these two accounts is the psychological factor.
It is difficult to carry out transactions with virtual funds to transmit to the subconscious that all operations are nothing more than a game. With this attitude, there is no composure, seriousness—actions are often committed irresponsibly. When a similar model is transferred to real capital, it is difficult to restructure quickly, leading to numerous losses. Because of this, the confidence disappears, it begins to seem that it is impossible to make a profit and all the Brokers inflate the clients completely, not allowing them to win.
To achieve success, it is necessary from the first days to behave as if the administration were not a set of numbers, whose value can be corrected quickly, but you must get the idea that you are operating with your real personal savings.
Carrying out your trading in this "Demo Account" must be done carefully, observing the rules of managing your virtual money, avoiding unnecessary risks, and strictly following the points of the chosen strategy.
However, there is a completely different problem. It is based on the fact that not all people can properly and immediately conduct business operations, having a large amount of money in their personal account.
Beginners begin to put pressure on responsibility—there is a fear of losing everything, so you can miss good signals to open positions, and sometimes decisions are made under the influence of emotions.
In such situations, it is recommended to start with an amount of money that is not too important for you to lose (even in a demo account). After all, often the trading strategy is highly dependent on the size of the deposit, and having become used to trading hundreds of thousands of dollars (albeit unrealistic), it is difficult to reorganize with a much smaller deposit.